Abstract

This research tried to investigate the relationship between tax amnesty disclosures, as mandated by Indonesia’s Statement of Financial Accounting Standards (SFAS) No. 70, the level of tax avoidance, and the firm value. This research used 34 samples of public listed companies that participate in 2016 tax amnesty program. Researcher used spearman-rho correlation coefficient and multiple linear regression to analyze the data. This research showed two results. First, there is a moderate negative relationship between tax amnesty disclosure level and tax avoidance level, indicate that necessity for tax amnesty disclosure will be reduced if the company had the lower level of tax avoidance. Second, this research also showed that tax avoidance level and tax amnesty disclosure level had the negative significant effect toward firm value. It is implied that tax amnesty and tax avoidance were two negative actions that reduce the investor trust’s in the company.

Highlights

  • This research was conducted as a response to tax amnesty programme that conducted in Indonesia for the year 2016 and 2017

  • Researcher select company that listed on the Indonesian Stock Exchange (IDX) that participating in 2016 tax amnesty, at the time when researcher did this research, financial statement for the year ended 2017 had not been published yet

  • There are 514 companies listed in the IDX in the year 2016, and based on various news, total of 136 companies participate in tax amnesty for the year ended 2016

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Summary

Introduction

This research was conducted as a response to tax amnesty programme that conducted in Indonesia for the year 2016 and 2017. Analysis of Tax Amnesty Disclosures, Tax Avoidance, and Firm Value. Wibowo & Darmanto (2017) stated that insufficient tax amnesty disclosure in financial statements make investor difficult to analyze and conclude about the tax status of the company, there is no significant market reaction after the company participates in tax amnesty programme. Previous studies usually have shown that there is a negative association between size and firm value (Lestari & Wardhani, 2015) This could occur because companies that achieve a high level of assets usually are in the maturity or declining stage of the company life cycle. This research will give closer look at the real effect of tax amnesty program to the investor-company relationship, and this research will contribute to the development of existing accounting requirement for tax disclosure, and how it relates to other variables

Methods
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Results and Discussion
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