Company Size, Profitability and Leverage to Tax Agresifity (Empirical Study to Manufacturing Subsector Paper, Advertising, Printing , Media in Indonesian Stock Exchange (BEI) Tahun 2015 – 2018)

Fs Feber Sormin

doi:10.7176/ejbm/12-18-04

Abstract

This study analyzes the effect of company size, profitability and leverage on tax aggressiveness measures in the manufacturing companies in the paper and advertising, printing and recording media industries listed on the Jakarta Stock Exchange. Data Population observations for the period 2015 to 2018 and obtained sample 46 with the Saturation Point Sample. The data analysis method used in the study is multiple regression analysis with SPSS statistical tools. The t-test results concluded that company size and profitability had a positive effect on tax aggressiveness. Leverage does not affect tax aggressive actions, while the F-test concluded that company size, profitability ratio (ROA) and leverage (DER) together affect tax aggressiveness. Keywords : company size (total sales), profitability (ROA), leverage (DER) and tax aggressiveness. DOI: 10.7176/EJBM/12-18-04 Publication date: June 30th 2020

Highlights

IntroductionTax Revenue is one of the cash revenue in countries. The state revenue from the tax sector plays a very important role for the continuity of the government system
In modern era, Tax Revenue is one of the cash revenue in countries
Leverage Ratio or Solvabilits ratio in this study uses Debt to Equity Ratio (DER), considering that the greater the debt owned by the company will have an impact the greater the interest borne by the entity, and this will have an impact on the tax burden to be borne

Summary

Introduction

Tax Revenue is one of the cash revenue in countries. The state revenue from the tax sector plays a very important role for the continuity of the government system. As the role of Tax which is the rights and obligations to the state owed by individuals or entities by not getting a direct reward and used for the needs of the country for the prosperity of the people. Based on the revenue target achieved from 2015 to 2018, it can be said that it has not reached the target based on the state budget, including the level of tax compliance based on the number of registered taxpayers who have not reached the target either from individual taxpayers or from corporate taxpayers. Experts and officials believe that there are many factors why the tax compliance target and level up to now has not reached expectations, one of which is tax evasion carried out by taxpayers through tax management, which certainly can affect the achievement of state revenues as expected. Not infrequently we find cases arising from the treatment of tax management that is not according to the rules

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Discussion

Conclusion