Tax Avoidance Practices Research Articles

Profitabilitas, leverage, inventory intensity ratio dan praktik penghindaran pajak

This study was conducted to examine the effect of profitability, leverage, and inventory intensity ratio on tax avoidance practices. The variable of tax avoidance is measured by using the effective tax rate (ETR), the variable of profitability is measured by the return on assets (ROA), the variable of Leverage is measured by the ratio of total debt to total assets, and the Inventory Intensity Ratio is measured by the comparison between total inventory and total assets. This research was conducted on manufacturing companies listed on the Indonesia Stock Exchange over a five-year period, namely 2016 - 2020. The number of samples used in this study were 77 companies. The number of final observations used was 245 observations. The sample selection method used is purposive sampling technique. Data were analyzed using multiple linear regression analysis. The type of data used in this study is secondary data in the form of company financial and annual reports which can be downloaded through www.idx.co.id. The results of this study indicate that profitability has a positive effect on tax avoidance practices, inventory intensity ratio has a negative effect on tax avoidance practices, and leverage has no effect on tax avoidance practices. The positive influence of profitability can be a policy input for the government related to good governance practices in companies so that tax avoidance practices can be minimized. This study also found that good inventory management can increase company profits which in turn increase tax revenue for the government. This study was conducted to examine the effect of profitability, leverage, and inventory intensity ratio on tax avoidance practices. The variable of tax avoidance is measured by using the effective tax rate (ETR), the variable of profitability is measured by the return on assets (ROA), the variable of Leverage is measured by the ratio of total debt to total assets, and the Inventory Intensity Ratio is measured by the comparison between total inventory and total assets. This research was conducted on manufacturing companies listed on the Indonesia Stock Exchange over a five-year period, namely 2016 - 2020. The number of samples used in this study were 77 companies. The number of final observations used was 245 observations. The sample selection method used is purposive sampling technique. Data were analyzed using multiple linear regression analysis. The type of data used in this study is secondary data in the form of company financial and annual reports which can be downloaded through www.idx.co.id. The results of this study indicate that profitability has a positive effect on tax avoidance practices, inventory intensity ratio has a negative effect on tax avoidance practices, and leverage has no effect on tax avoidance practices. The positive influence of profitability can be a policy input for the government related to good governance practices in companies so that tax avoidance practices can be minimized. This study also found that good inventory management can increase company profits which in turn increase tax revenue for the government.

Tax Avoidance Terhadap Perspektif Komisaris Independen,Kompensasi Rugi Fiskal dan Pertumbuahn Aset

Tax avoidance is a tax avoidance practice carried out by taxpayers, especially corporate taxpayers to reduce or even eliminate the tax burden by taking advantage of loopholes. In tax policies and regulations. This study aims to analyze and examine the effect of independent commissioners, asset growth and fiscal loss compensation on tax avoidance. The population used in this study are mining sector companies listed on the Indonesia Stock Exchange (IDX) for a five-year period, 2016-2020. With a final sample of 60. The method used in this research is using purposive sampling technique. The data analysis technique uses panel data regression analysis using the Eviews 12 program. The results of this study partially explain that independent commissioners have a significant negative effect on tax avoidance, asset growth has no significant effect on tax avoidance. And fiscal loss compensation has no significant effect on tax avoidance.

The Effect of Good Corporate Governance on Tax Avoidance

This study aims to prove the effect of good corporate governance as proxied through independent commissioners, institutional ownership and audit committees on tax avoidance practices by manufacturing companies listed on the Bursa Efek Indonesia in 2019-2020. The independent variables used are independent commissioners which are measured by comparing the number of independent commissioners and the total number of boards of commissioners, then institutional ownership which is measured by comparing the number of shares owned by the institution with the number of shares outstanding, and the audit committee as measured by the number of audit committees. The dependent variable used is tax avoidance which is measured using the Effective Tax Rate (ETR) by comparing the income tax burden with profit before tax. The results obtained from this study are independent commissioners and institutional ownership have no significant effect on tax avoidance, while the audit committee has a significant negative effect on tax avoidance.

An Analysis of Company Size, Ownership Structure, Intensity of Fixed Assets, and Inventory Intensity on Tax Avoidance: A Case of Retail Companies

This study aims to analyze the effect of firm size, managerial ownership structure, inventory intensity, and fixed asset intensity on tax avoidance. State revenues sourced from the taxation sector may decrease due to tax avoidance practices, and the company's main motive for doing so is to minimize the amount of tax owed that must be paid by the company. Several factors influence companies in tax avoidance, this study uses inventory intensity variables that are still rarely used by other researchers with the reasoning that this ratio can affect the effective tax rate. This study uses 11 retail companies listed on the Indonesia Stock Exchange (IDX) for the period 2015 – 2019. The sampling method is purposive sampling and the analytical technique used is multiple linear regression analysis. The results of the study prove that inventory intensity and fixed asset intensity have a positive effect on tax avoidance, while the firm size and managerial ownership structure do not affect tax avoidance.

The role of XBRL adoption on the association between managerial ability and corporate tax outcomes: empirical evidence from Indonesia

Purpose This study examines the moderating effect of XBRL mandatory adoption on the association between managerial ability and corporate tax outcomes.Design/methodology/approach This study used a quantitative method with panel data regression models using a sample of listed firms on the Indonesia Stock Exchange from 2010 to 2019.Findings The regression results indicate that XBRL adoption moderates the relationship between managerial ability on tax avoidance and tax risk. Firms with higher managerial ability have relatively greater tax avoidance practices and lower tax risk following XBRL adoption. In this study, the authors document unfavorable and unexpected consequences of XBRL in an emerging country.Research limitations/implications Results are from a sample of firms from one emerging country.Practical implications It becomes important and necessary to develop more and better taxonomies with standardized extensions related to taxes information in the XBRL financial reporting to support the tax administrator’s performance in assessing firms’ tax avoidance and tax risk. The authors underscore the importance of improving taxes tags, including tags from financial statements and the disclosure section. This study may also inform policymakers in other countries that more adequate tax tags are needed to leverage benefit from XBRL adoption in monitoring and assessing corporate tax avoidance and tax risk.Originality/value This study is among the first to test an explanation for the moderating role of XBRL adoption on the association between managerial ability and corporate tax avoidance and tax risk.

Pengaruh Good Corporate Governance Terhadap Tax Avoidance Pada Perusahaan Yang Terdaftar di Jakarta Islamic Index (JII)

The realization of the tax amnesty in 2016 made Indonesia ranked first in the practice of implementing tax amnesty in the world, but on the other hand there are still many companies that have not complied with tax payments. Good corporate governance should take an important role in minimizing tax avoidance practices. This study aims to examine the effect of Good Corporate Governance on tax avoidance. Good Corporate Governance is proxied by Institutional Ownership, Independent Board of Commissioners, Audit Committee and Company Size, while Tax Avoidace is proxied by Current Effective Tax Rate with the object of research being companies listed in the Jakarta Islamic Index (JII). This research is a quantitative research using regression analysis method. The regression results explain that; Institutional ownership has a significant positive effect on tax avoidance (0.0212 < 0.05), the Board of Independent Commissioners has no significant effect on tax avoidance (0.8451 > 0.05), the Audit Committee has a significant negative effect on tax avoidance (0.0498 < 0.05), Company Size has a significant positive effect on tax avoidance (0.0011 < 0.05).

EnglishPolitical Connections and Thin Capitalization on Tax Avoidance During The Covid-19 Pandemic

Taxes are Indonesia's primary source of revenue and play a major role in promoting economic progress. The Covid-19 epidemic is thought to be capable of motivating tax avoidance. Political connections and thin capitalization tend to be associated with tax avoidance practices. The purpose of this study is to measure the effect of political connections and thin capitalization on tax evasion. The sample used is a company registered on IDX 80 in 2020 and obtained as many as 48 companies using the purposive sampling technique as sampling technique. Multiple linear regression analysis was used in this study as an analytical technique using SPSS statistical software. According to the findings of this study, variabel in political connection have a significant impact on tax avoidance, whereas thin capitalization has a negative and insignificant impact. 
 Keywords: Tax Avoidance; Political Connection; Thin Capitalization.

Pengaruh Overconfidence Manajer Dan Capital Intensity Terhadap Penghindaran Pajak Yang Dimoderasi Oleh Kualitas Audit

This study aims to examine the moderating role of audit quality on the effect of manager overconfidence and capital intensity on tax avoidance. The sample samples selected using the purposive sampling method consist of Indonesia public manufacturing companies for the periode 2015-2019. It employs SEM-PLS to test the hypotheses. The results show that manager overconfidence has a negative and significant effect on tax avoidance, capital intensity has a positive and significant effect on tax avoidance. Audit quality does not moderate the effect of manager overconfidence and capital intensity on tax avoidance. The study confirms that managers overconfidence reduces tax avoidance practices

DOES CLIMB PEAK OF TAX AVOIDANCE FROM CSR AND COMPANY CHARACTERISTICS? STUDY IN INDONESIA

Departing from the realization of declining tax revenues as an indication of the tax aggressiveness existence, this paper addresses the relationship of social values, namely corporate social responsibility (CSR) and company characteristics, namely profitability, firm size, leverage, and capital intensity to three tax avoidance practice schemes, book tax difference (BTD), cash effective tax rate (CAETR), and current effective tax rate (CUETR). We accommodate legitimacy theory to seek CSR rationalization, corporate obligations that are maximize shareholder wealth, and tax regulations determine tax avoidance. The research sample is a company that is listed on the Indonesian stock exchange and publishes sustainability reporting for the 2016-2020 period where the panel data regression technique is used. The descriptive results show that BTD and CAETR do not show tax avoidance practices, on the contrary, CUETR does. The results explain that CSR is carried out based on ethical values-not profit driven, and it is proven that it does not significantly cause tax avoidance. Firm size and capital intensity are not proven to have strong ties to all tax avoidance schemes. Through CUETR, ROA and leverage are used as tools to practice tax avoidance, while BTD and CUETR are not used. This research contributes to tracing CSR driven, shows tax regulations that are used for tax avoidance, and has practical implications to show that ROA and leverage have a tendency to tax aggressiveness tools. Future research should directly examine companies involved in tax avoidance.

Transfer Pricing as an Institution Supporting the Anti-Optimization Clause in Counteracting Tax Avoidance

The purpose of this study is to show the relationship between transfer pricing regulations and the anti-tax avoidance clause. The paper discusses the axiology of legal regulations aimed at counteracting tax avoidance practices and the use of non-market prices in relations between related entities. An attempt was made to present the concept of the phenomenon of harmful tax competition, also the essence of tax avoidance, and to contrast this concept with the phenomenon of tax evasion. The phenomenon of tax optimization was also indicated. The relationship between the provisions of the general anti-optimization clause and transfer prices that determine the appropriate state of prices between related entities within the meaning of tax law was also subjected to a detailed analysis.

Stewardship Theory di antara hubungan corporate risk, kompensasi eksekutif, karakteristik eksekutif, dan kepemilikan saham pemerintah terhadap tax avoidance

This research expected to understand the effect of corporate risk as measured by the standard deviation of EBITDA divided by total assets, executive compensation, executive characteristics as proxied by age and executive education and government share ownership on tax avoidance (ETR). The research sample of state-owned enterprises found on the official website bumn.go.id, was selected using the purposive sampling method, and 31 state-owned enterprises were obtained as observation data that met the sample criteria. The analysis to examine the effect of each independent variable on the dependent uses Multiple Regression. The results of the study state that corporate risk has a significant influence on tax avoidance, however, the results of this research are different when the researcher tries to exclude state-owned companies that are subject to final income tax from the research sample. From the results of this study, it was found that corporate risk has no effect on tax avoidance. executive compensation, executive characteristics of government share ownership have no effect on tax avoidance. Further research can use financial ratios, company age or other proxies that may affect tax avoidance. In addition, future researchers are expected to use private companies as a comparison of tax avoidance practices.

The Rate of Tax Avoidance in Manufacturing Companies during a Pandemic

Objective - This study aims to compare the level of tax avoidance in manufacturing companies before and during the COVID-19 pandemic. This study uses a descriptive quantitative approach. Methodology/Technique – The objects studied are manufacturing companies listed on the Indonesia Stock Exchange in 2019 and 2020. The sample selection uses the purposive sampling method. Findings - The results of the study were seen based on a table analysis containing the ETR value of each sample company. The results showed there was a significant increase from 2019 to 2020. The practice of tax avoidance by manufacturing companies in the food and beverage sub-sector, as well as the industrial sub-sector showed an increase from 2019 as much as 24% to 53% in 2020. Novelty - This is because several companies with ETR values above 25% in 2019 will actually be below 25% in 2020. There are several reasons that underlie this tax avoidance, such as the declining financial stability of each company in 2020, significantly reduced profits in 2020, and less global economic stability. Type of Paper: Empirical. JEL Classification: M41, M49.

Managerial and Financial Capabilities Become Determining Factors of Tax Avoidance Practice in Indonesia

Differences in interests related to taxation between the government and companies are still a current issue. The purpose of this study is to examine the impact of managerial and financial competencies on tax avoidance in Indonesian manufacturing companies. 149 financial statements of companies listed on the Indonesia Stock Exchange were used to compile the data. Panel data regression with a random-effects model was used to test and analyze the data. The findings revealed that financial challenges and managerial ability had a detrimental impact on tax avoidance, but there was no influence between the audit committee on tax avoidance. As for the control variable, there is a positive influence between profitability on tax avoidance, and there is no influence between leverage on tax avoidance.

The Effect of the Proportion of the Independent Board of Commissioners and the Structure of the Board of Directors and Audit Committee on Tax Avoidance and their Impact on Company Value

Until now, the tax authorities have indicated that there are still tax avoidance practices by companies in Indonesia. The phenomenon shows that government revenues from the tax sector have not been maximized, as can be seen from the realization of tax revenues that have not been achieved from the target from 2009 to 2019. The purpose of this study is to examine the effect of the proportion of independent commissioners, the composition of the board of directors, the audit committee on tax avoidance, and its impact on firm value. The population of this study is all manufacturing companies listed on the Indonesia Stock Exchange for the 2015-2019 period. With the purposive sample method. Samples obtained 61 companies with a span of 5 years, a total of 305 samples. The instrument used to analyze the hypothesis is path analysis. This study concludes that the Audit Committee has a significant effect on Tax Avoidance, while the proportion of the Board of Independent Commissioners and the composition of the Board of Directors has no significant effect on Tax Avoidance. The proportion of Independent Commissioners has a significant influence on Company Value. Other variables The composition of the Board of Directors, the Audit Committee, and Tax Avoidance do not have a significant effect on Company Value.

Discussion of Dhaliwal, Goodman, Hoffman, and Schwab (2019): Revisiting Tax-Related Reputational Costs

Discussion of Dhaliwal, Goodman, Hoffman, and Schwab (2019): Revisiting Tax-Related Reputational Costs

Mampukah Komisaris Independen Memoderasi Pengaruh Kinerja Keuangan Terhadap Tax Avoidance?

The purpose of this study was to determine the effect of capital intensity and leverage on tax avoidance with independent commissioner as moderating variable. The population in this study is the manufacturing companies listed on the Indonesia Stock Exchange (IDX) in 2016-2020. The method of determining the sample used purposive sampling and obtained 75 observation. The method of analysis in this study used panel data moderated regression analysis (MRA). The result of the analysis showed that the capital intensity has a positif effect on tax avoidance. The higher capital intensity, the lower the practice of tax avoidance. Leverage has no effect on tax avoidance. The higher laverage on company will not have an impact on tax avoidance. The proportion of independent commissioner can weaken the moderated effect of capital intensity on tax avoidance. The higher the independent commissioner will monitoring the capital intensity ratio on tax avoidance. Independent commissioner does not moderated the effect of leverage on tax avoidance. The proportion of independent commissioner has no impact on leverage decisions on tax avoidance.

Pengaruh Kepemilikan Institusional Terhadap Penghindaran Pajak Perusahaan Manufaktur di Indonesia (2017-2019)

The purpose of this research was to determine the effect of institutional ownership on tax avoidance. The population in the study includes manufacturing companies listed on the Indonesia Stock Exchange from 2017 to 2019 with a population of 193 companies. Determination of the number of samples using purposive sampling, in order to obtain a sample of 87 companies. The test hypothesis was carried out using multiple linear regression analysis techniques. Research result reports that institutional ownership had a significant and negative effect on tax avoidance. This finding means that in the context of agency theory, institutional investors tend to ignore the supervisory function, focus more on getting more benefits and encourage tax avoidance practices.

The Effect of Sales Growth, Responsibility, and Institutional Ownership on Tax Avoidance with Profitability as Moderating Variables

This research examines the effect of sales growth, corporate social responsibility, and institutional ownership on tax avoidance in manufacturing companies listed on the Indonesia Stock Exchange from 2016 to 2019. This study relies on secondary data obtained from annual reports obtained from the official website of the Indonesia Stock Exchange, namely www.idx.co.id and www.sahamok.com. The total sampling used is 41 companies for this study. The software used is E-Views 11.0. The findings of this study indicate that corporate social responsibility, profitability, and institutional ownership, which are moderated by profitability, have an impact on tax avoidance. Meanwhile, sales growth had no effect on tax avoidance, and profitability proved unable to balance sales growth and corporate social responsibility in terms of tax avoidance. Good governance is needed to fulfil corporate social responsibility obligations in a company and has been proven to help company management to suppress tax avoidance practices.

PENGARUH RETURN ON ASSET (ROA), LEVERAGE, DAN INTENSITAS MODAL TERHADAP PENGHINDARAN PAJAK (TAX AVOIDANCE)

This study aims to examine the effect of Return On Assets, Leverage, and Capital Intensity on Tax Avoidance. The population in this study were all pharmaceutical companies listed on the Indonesia Stock Exchange during the 2017-2019 period, namely 10 companies. Sampling in this study using the purposive sampling method, in order to obtain 6 companies that meet the criteria. Regression analysis in this study using Multiple Linear Regression Analysis. Meanwhile, to test the hypothesis using the t-test and F-test. The results of this study partially show that the first hypothesis of the Return On Assets variable has no effect on tax avoidance. This means, if the Return on Assets decreases, the company tends to do tax avoidance. The second hypothesis is that the Leverage variable has an effect on Tax Avoidance. This means that if Leverage increases, the company tends to do Tax Avoidance. The third hypothesis is that the Capital Intensity variable has an effect on Tax Avoidance. This means, if there is an increase in capital it will cause the company to tend to do tax avoidance. The fourth hypothesis is that Return on Assets, Leverage, and Capital Intensity simultaneously affect the practice of Tax Avoidance with an R2 value of 56.8%. This shows the effect of all these variables is 56.8% on the Tax Avoidance variable.

INDIVDIDUAL TAXPAYER OPPORTUNITIES ON TAX COMPLIANCE

The OECD provides recommendations to improve taxpayer compliance in Indonesia by reducing tax avoidance practices. However, most of the research conducted in Indonesia currently discusses individual taxpayers' economic, psychological or moral factors, intending to encourage taxpayers to comply voluntarily. Meanwhile, Kleven et al. argue that this tax avoidance can occur if the Taxpayer has the opportunity to avoid it. Therefore, the Withholding tax system avoids a tax system that can be used as a solution in closing the opportunity for individual taxpayers to do so. This research uses a quantitative approach with descriptive analysis techniques and linear regression models with the research location being carried out at the Jakarta Matraman Tax Service Office. The analysis results show that third parties as a form of supervision and closing the opportunity for individual taxpayers to avoid tax have a positive and significant effect of 73% on tax compliance. Every Taxpayer has an opportunistic attitude to avoid tax, but if there is supervision from a third party, then the Taxpayer tends to comply with his tax obligations. Thus, tax reporting by third parties can reduce the opportunity for taxpayers to avoid taxes and improve tax compliance