Abstract
This research was conducted with the aim of: (1) to determine whether firm characteristics and corporate governance affect tax avoidance in mining companies in Indonesia, and (2) to determine whether corporate governance moderates the relationship between firm characteristics and tax avoidance. The research sample is all mining companieslisted on the IDX forthe period 2015 to 2018, totally 156 observations. From 156 observations, 84 observations can be analyzed. This research data is secondary data in the form of mining company Annual Reports obtained from the official website of the IDX, namely www.idx.co.id and the official websites of the respective companies. Data analysis to test data normality used the Kolmogorov Smirnov test. Hypothesis testing uses moderated regression analysis (MRA) with SPSS. The result of the analysis shows that firm characteristics consisting of leverage and ROE have an effect on tax avoidance, while company size has no effect on tax avoidance. Another result is that CG as measured by the proportion of independent commissioners does not moderate the relationship between firm characteristics and tax avoidance.
Highlights
1.1 Background Tax planning is defined as a step in tax management, namely by minimizing the taxes that must be paid
1.2 Research Objectives and Benefits The purpose of this study was to determine: (1) whether the characteristics of the company as measured by company size, leverage and return on assets (ROA) and corporate governance, which is proxied by the proposition of independent commissioners, affect tax avoidance, and (2) whether corporate governance moderates the relationship between company characteristics and tax avoidance
RESEARCH METHODS 3.1 Population and Research Sample The population of this research is all companies listed on the Indonesia Stock Exchange (BEI)
Summary
1.1 Background Tax planning is defined as a step in tax management, namely by minimizing the taxes that must be paid. Tax in the eyes of the state is a source of revenue to finance government administration, but for tax companies it is a burden that will reduce the net profit generated by the company. This causes companies to tend to look for ways to reduce the amount of tax payments, both legally and illegally. According to Timothy (2010), the goal of company managers in tax aggressiveness is to minimize the tax burden so as to increase company profits, but on the other hand, the costs involved in taking aggressive tax actions are very expensive. This shows that taking tax aggressiveness does not provide benefits to company owners
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