EFFECT OF EARNINGS MANAGEMENT, LEVERAGE AND INDEPENDENT COMMISSIONER ON TAX AVOIDANCE

Abstract

One of the reasons why tax revenue is still relatively below the target is tax avoidance. Taxpayers, especially corporate taxpayers, try to reduce the tax liability to a minimum because it has an impact on the company’s after-tax profit. The company’s decision to avoid tax is influenced by many factors, including earnings management, corporate financing (leverage) and, the role of independent commissioners. This study aims to analyze the effect of earnings management, leverage, and independent commissioners on tax avoidance. This study uses a sample of consumer goods industrial companies listed on the Indonesia Stock Exchange for the period 2017-2019. The sample selection procedure uses purposive sampling. This study uses multiple regression with SPSS software. From the results of the study, it is the independent commissioners who have an effect on tax avoidance. KEYWORDS: earning management; leverage; independent commissioners; tax avoidance