THE EFFECT OF GOOD CORPORATE GOVERNANCE MECHANISM AND CORPORATE SOCIAL RESPONSIBILITY DISCLOSURE ON TAX AVOIDANCE WITH COMPANY SIZE AS MODERATING VARIABLES

Abstract

Taxes are the largest source of state revenue which functions as a source of funds intended for financing government expenditures and as a tool to regulate and implement policies in the social and economic fields and are used for the greatest welfare of the people. Therefore, corporate and individual taxpayers are expected to comply with their tax obligations voluntarily and comply with tax regulations. Taxpayer non-compliance can cause disruption to State finances. One of the ways of non-compliance is done by means of tax avoidance. The objectives of this study are as follows: 1) To find empirical evidence regarding the effect of independent boards of commissioners on tax avoidance; 2) Finding empirical evidence regarding the effect of the audit committee on tax avoidance; 3) Finding empirical evidence regarding the effect of audit quality on tax avoidance; 4) Finding empirical evidence regarding the effect of disclosure of corporate social responsibility on tax avoidance; 5) Finding empirical evidence regarding the extent to which firm size can moderate the relationship between independent boards of commissioners and tax avoidance; 6) Finding empirical evidence regarding the extent to which firm size can moderate the relationship between the audit committee and tax avoidance; 7) Finding empirical evidence regarding the extent to which firm size can moderate the relationship between audit quality and tax avoidance; and 8) Finding empirical evidence regarding the extent to which firm size can moderate the relationship between disclosure of corporate social responsibility and tax avoidance. This type of research used in this research is casual associative research (causal associative research). The population in this study were all manufacturing companies listed on the Indonesia Stock Exchange for the 2015-2019 period. The sample selection was done by using purposive sampling method. The analytical method used to test the hypothesis is Moderated Regression Analysis (MRA). The results showed that: 1) The independent board variable has no effect on tax avoidance in a positive direction; 2) The audit committee variable has no effect on tax avoidance in a negative direction; 3) The audit quality variable has no effect on tax avoidance in a negative direction; 4) The variable of corporate social responsibility disclosure has a negative effect on tax avoidance; 5) The size of the company is able to moderate the relationship between the independent board of commissioners and tax avoidance in a negative direction; 6) The size of the company is unable to moderate the relationship between the audit committee and tax avoidance in a negative direction; 7) The size of the company is not able to moderate the relationship between audit quality and tax avoidance in a positive direction; and 8) Company size is able to moderate the relationship between disclosure of corporate social responsibility and tax avoidance in a negative direction.