Abstract
The self-assessment system in which the taxpayer performs the calculation, payment, and tax reporting by the taxpayer itself risks tax avoidance practices. To minimize this risk, the Directorate General of Taxation carries out law enforcement in the framework of supervision through tax audit activities. This study aims to analyze the effect of the effectiveness of the inspection on tax avoidance practices by using a moderated political connection because it is suspected that companies with a political link tend to be more aggressive in terms of tax planning. This study uses panel data of companies listed on the Indonesia Stock Exchange from 2016 to 2018. The study results conclude that tax audits effectiveness has a significant effect on tax avoidance practices, which means that the more influential the tax audit activities are, the lower the tax avoidance level.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
