Abstract
The purpose of this research is to examine the influence of corporate risk, company size, and compensation tax losses against tax avoidance. Sample was drawn from Jakarta Islamic Index (JII) companies. We use secondary data from Indonesia stock exchange and company’s official websites. PLS-SEM was used to analyze the data, especially we use WarpPLS 6.0. The result indicates that corporate risk and size significantly influence on tax avoidance, while compensation tax losses has no impact on tax avoidance. This means that the higher of corporate risk, the higher amount of tax avoidance. The bigger size of companies, the higher amount of tax avoidance.
Highlights
A country's development requires both financial and non-financial resources
Data in the form of corporate financial statements contained in Jakarata Islamic Index (JII) in 2016, as well as data sources obtained by researchers obtained from the official website of the Indonesia Stock Exchange and the company website which became the object of this study
Techniques used are documentation by looking at the financial statements, notes on financial statements, and annual reports of all companies listed on the JII (Jakarta Islamic Index) in 2016
Summary
The source of finance comes from the tax sector paid by each taxpayer. According to Mardiasmo (2000) Taxes represent a sum of money in the form of contributions to be paid by the people to state coffers based on a law that can be coercive by receiving indirect payments used to pay public expenditures. Tax avoidance is one way of taxpayers to make tax evasion by utilizing the weaknesses of tax laws. Such tax avoidance efforts are carried out by reducing the amount of tax payable through gaps or matters that is not yet regulated by law or known as the gray area (Praditasari and Setiawan, 2017)
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