Abstract
This study aims to analyze the owner's role in the company's tax policy taken by management. As the owner of capital, the role of the owner is strongly suspected of influencing management in every policy, including tax policy, while, tax for companies is still considered a burden that erodes issuers’ profits and investors returns. Decisions in tax policy are indicators in assessing the level of compliance and dilemmas in responding to owner interests. STATA was used for the analysis of 132-panel data from the annual report of manufacturing companies listed on the Indonesia Stock Exchange from 2014 to 2019 after purposive sampling. This study found strong institutional and foreign owners’ role on management policy for tax minimization. These results can be input for other stakeholders such as regulators in analyzing the level of taxpayer compliance from the influence of institutional and foreign share ownership. The advantage of this research is the use of the Tax Compliance Ratio (TCR) as an indicator of the company's tax policy compared to the Effective Tax Rate (ETR) which is commonly used by other studies. In addition, the expansion test of the research model with a simple regression test on the effect of each share ownership as well as a sensitivity test in analyzing the strength of TCR compared to ETR makes this research unique and deeper.
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