The Effect of Sales Growth, Profitability and Leverage on Tax Avoidance

Abstract

This study aims to determine and analyze the effect of Sales Growth, Profitability, and Leverage on tax avoidance. This type of research used quantitative research. This study's population is the entire food and beverage sub-sector manufacturing companies listed on the Indonesia Stock Exchange from the period 2014-2018. The technique used in sampling is purposive sampling. The number of food and beverage manufacturing companies sampled ten companies so that the total sample in 5 years 50 examples of annual financial statements. The results of this study indicate that sales growth and leverage affect tax avoidance. In contrast, profitability does not affect tax avoidance. The increase in sales growth will make the company get a large profit so that the company has a general tax obligation, and the company will tend to practice tax avoidance. Companies that profit the maximum profit in a company also encourage companies to carry out tax avoidance activities. The increasing level of corporate debt will promote tax avoidance practices.