Factors Cause of Tax Avoidance in Companies Listed on Indonesian Stock Exchange

Abstract

This study aims to determine the factors that cause tax avoidance in companies listed on the Indonesian stock exchange (BEI). The following factors that affect tax avoidance include profitability, liquidity, leverage and company size. The population of this research is companies listed on the Indonesian stock exchange. The sampling method used was purposive sampling. The data analysis technique used multiple regression analysis. In measuring tax avoidance, you can use Cash ETR. Cash ETR is an effective tax rate based on the amount of cash paid by the company in the current year. This study uses a quantitative research design and secondary data from mining companies listed on the Indonesia Stock Exchange. The results showed that the effect on profitability, liquidity, leverage and size has an effect on tax avoidance. This indicates that the higher the level of company profitability, the lower the avoidance efforts by the company. This indicates that the higher the level of company liquidity, the lower the tax avoidance efforts the company undertakes. This indicates that the level of corporate leverage affects the amount of tax avoidance the company does. This indicates that the greater the size of the company will lead to higher tax avoidance efforts by the company.