Profitability and Good Corporate Governance on Tax Avoidance of Food and Beverage

Abstract

Tax avoidance is carried out by companies in terms of minimizing the company's tax burden through loopholes in company regulations. This study aims to examine the influence of profitability and effective corporate governance on the adoption of tax avoidance tactics. The measurement of effective corporate governance may be represented by factors such as institutional ownership, audit committee, independent commissioner, and audit quality. The study’s population comprises of food and beverage companies that were publicly traded on the Indonesia Stock Exchange (IDX). The number of samples used in this study was 84 samples based on a purposive sampling method. The research used a quantitative analytic method known as Multiple Linear Regression analytic, utilizing IBM SPSS version 26.0. Tax avoidance practices are significantly impacted by profitability, institutional ownership, audit committee, and independent commissioners, according to the findings of this study.