The Analysis of Tax Avoidance Determinant on The Property and Real Estate Companies

Turyatini Turyatini

doi:10.15294/jda.v9i2.10385

Abstract

The tax authorities had found some modus that done by developers on property tax avoidance and supported by potential loss of tax income from property and real estate sector at 2012-2015. This phenomenon show that tax avoidance still practiced by most of property and real estate companies, so that its became the target of intensive monitoring by the tax authorities. The aim of this research is to analyze the effect of leverage, company size, sales growth, institutional ownership, and independent commissioners on tax avoidance in property and real estate companies The population of this research is real estate property company which number 47 companies and the sample is 18 companies is done by using purposive sampling method. The instrument used to analyze the hypothesis is multiple linear regression. The results show that leverage and company size have significant effect on tax avoidance. Sales growth, institutional ownership and independent commissioners do not have significant effect on tax avoidance.

Highlights

The government uses taxes to implement national development programs in various sectors to improve people’s welfare
The results of the analysis and discussion show that leverage and company size partially has a significant effect on tax avoidance
Institutional ownership and independent commissioners partially have no significant effect on tax avoidance

Summary

Introduction

The government uses taxes to implement national development programs in various sectors to improve people’s welfare. Based on the realization of the State Expenditure Budget (APBN), it indicates that tax is the largest source of state revenue, so the government always seeks to increase the optimization of tax revenue. This is seen from the contribution of tax revenues that continue to increase from year to year. The development of tax revenues quantity is not accompanied by an increase in tax revenue growth and the achievement of the target of state tax revenues. There is a difference of interest between the government and the company. On the one hand the government seeks to increase the optimization of tax revenues, whereas the government efforts are contrary to the company as taxpayers because taxes can reduce profits so the company wants minimum tax payments (Setyaningrum & Suryarini, 2016)

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Results

Conclusion