Tax Aggressiveness Research Articles

Pengaruh Komisaris Independen, Komite Audit, Board Gender Diversity, dan CSR terhadap Tax Aggressiveness pada Perusahaan Kompas100 Sebelum dan Selama Pandemi

This study aims to determine the effect of independent commissioner, audit committee, board gender diversity, and CSR on tax aggressiveness The population and sample in this study were KOMPAS100 index companies listed in Indonesian Stock Exchange before and during the Covid-19 pandemic for the 2018-2021 period. The sampling technique of this study was using purposive sampling technique. The number of research samples before the Covid-19 pandemic was 69 samples and during the Covid-19 pandemic was 85 samples. The data analysis technique used in this study is multiple linear regression. Before the Covid-19 pandemic, it was found that independent commissioner, audit committee, board gender diversity, and firm size had no impact on tax aggressiveness, while CSR and leverage had an impact on tax aggressiveness. During the Covid-19 pandemic, it was found that CSR, board gender diversity, leverage, and firm size had no impact on tax aggressiveness, while the independent commissioner and audit committee had an impact on tax aggressiveness.

Pengaruh Inventory Intensity, Capital Intensity, Likuiditas Terhadap Agresivitas Pajak (Studi pada Perusahaan Subsektor Pertambangan Batu Bara pada Bursa Efek Indonesia Tahun 2015-2019)

The aim of the research is to prove and analyze individually or collectively the influence of inventory intensity, capital intensity, and liquidity on tax aggressiveness. The sample in this research is a coal mining company on the Indonesia Stock Exchange. The data used is from 2015 to 2019. The data analysis method to prove the truth of the hypothesis is multiple regression t-statistical testing and F-statistical testing. Hypothesis testing using the SPSS program. Based on the results of the hypothesis test, it was found that capital intensity and liquidity had a significant influence on tax aggressiveness in coal mining sub-sector companies on the Indonesia Stock Exchange, while inventory intensity had no significant effect on tax aggressiveness in coal sub-sector companies on the Indonesia Stock Exchange. Apart from that, inventory intensity, capital intensity, and liquidity all have a significant influence on tax aggressiveness in coal mining sub-sector companies on the Indonesia Stock Exchange.

Influencing factors tax aggressiveness: liquidity, leverage, and profitability

Previous and related research is very important in an ongoing process of writing scientific articles. The point is to find comparisons and inspiration for writers. Another thing to strengthen the theory and phenomenon of the relationship and influence between the specified variables. This article reviews the factors that influence tax aggressiveness on liquidity, leverage and profitability. The approach used is a literature review on tax accounting. The purpose of writing this article is to build a hypothesis on the influence between variables to be used in further research. The results of this literature review article are that liquidity has an effect on tax aggressiveness, leverage has an effect on tax aggressiveness and profitability has an effect on tax aggressiveness.

Geopolitical risk, financial constraints, and tax avoidance

We investigate the impact of geopolitical risk on corporate tax avoidance using a sample of all public US firms from 2005 to 2019. We find that an increase in geopolitical risk leads to higher engagement in corporate tax avoidance, as measured by a decline in cash-effective tax rates in both the short run and long run. This effect is more pronounced for firms with higher financial constraints. Furthermore, using the 2016 OPEC agreement as a geopolitical shock, we find that oil-related firms engaged in more aggressive tax avoidance activities than their non-oil-related counterparties. Our findings are robust to an alternative measure of industry exposure.

Corporate Tax Aggressiveness Influenced by CSR and Financial Ratios

The purpose of this study is to investigate and analyze the relationship between corporate social responsibility, leverage, and company size and tax aggressiveness. Using the GRI-4 indicator with 91 items, the research examines corporate social responsibility as an independent variable. The debt-to-asset ratio is used to evaluate leverage, whereas the natural logarithm of total assets is utilized to evaluate the magnitude of a company. In this study, the dependent variable is tax aggressiveness, as measured by the Effective Tax Ratio (ETR). The annual reports of manufacturing companies listed on the Indonesia Stock Exchange (IDX) between 2016 and 2020 were analyzed for this study. Types of research this is quantitative research. The sample selection procedure utilized a method of purposive sampling, yielding a total sample population of 157 businesses. However, only 54 businesses fulfilled the inclusion requirements for the study. The collected data was analyzed using version 26 of the SPSS software. According to the study's findings, corporate social responsibility has a substantial effect on tax aggressiveness. The study found no positive or statistically significant effects of leverage or company size on tax aggressiveness.

DETERMINANTS OF TAX AGGRESSIVENESS AMONG NON-FINANCIAL LISTED FIRMS IN NIGERIA

The study investigated the determinants of tax aggressiveness among Nigerian listed non-financial firms using inferential and descriptive statistics. Ex-post facto research design was used based on the researchers’ choice of relying on secondary data of listed non-financial enterprises in order to meet the study's general and specific objectives. For this study, 10 years company-specific data were collected from MachameRatios Positive Accounting Database covering 2011 to 2020. Analysis was done using the regression method along with relevant diagnostic tests. According to the results of the hypothesis test, we discovered that Return on Assets (ROA) and gender diversity on the audit committee, does not significantly influence tax aggressiveness, whereas, real earnings management and independence of corporate boards have significant impact on the level of tax aggressiveness of listed non-financial firms in Nigeria. The study thus submits that the level of board independence and the degree of managements’ involvement on real earnings management are major determinants of tax aggressiveness among Nigerian listed non-financial firms. This study thus recommends that the Financial Reporting Council of Nigeria and other relevant regulatory agencies should sustain previous provision in the corporate governance codes requiring the compulsory inclusion of independent directors in the boards of corporate entities. Conscious attempts must be made by regulators to strategically monitor the activities of corporate organizations and their respective management to the extent that tax aggressive tactics through real activities’ manipulation should be discouraged and possibly sanctioned.
 Keywords: Tax Shield, Effective Tax, Tax Aggressiveness, Non-Financial Listed Firms, Corporate Boards, Nigeria.

Pengaruh Profitabilitas, Ukuran Perusahaan, Tingkat Utang dan Kualitas Audit Terhadap Agresivitas Pajak

This study aims to examine the effect of profitability, firm size, debt levels and audit quality on tax aggressiveness. This study used a purposive sampling method to collect secondary data samples from the annual reports of 18 food and beverage sub-sector companies listed on the Indonesia Stock Exchange (IDX) with a research period of 2020-2022. The analytical method used is multiple linear regression using the SPSS version 25 program. Tax aggressiveness is measured using the Effective Tax Rate (ETR), profitability is measured using Return On Assets (ROA), company size is measured by firm size, debt levels are measured using Debt Assets Ratio (DAR) and audit quality are measured using a dummy variable. The results of this study indicate that profitability and debt levels have a positive effect on tax aggressiveness, while firm size and audit quality have no effect on tax aggressiveness. The implications of this study ensure that the profits obtained by the company are not the result of tax aggressiveness.

DIGITAL SUPPORT OF THE ORGANISATION AND METHODOLOGY OF THE TAX AUDITS AS A FACTOR OF THE FINANCIAL SECURITY

In modern economic conditions, taxes are one of the main sources of filling state funds, which are necessary to ensure the social and economic well-being of the state and society. Unfortunately, tax evasion, aggressive tax planning and non-compliance with tax laws are widespread. This, in turn, affects the quality and accessibility of government programmes. Non-compliance undermines the fairness of the tax system, as those who do not pay their fair share shift the burden to other taxpayers. Non-compliance undermines the fairness of the tax system because those who do not pay their proper portion shift the burden to other taxpayers. In the same way, businesses that do not pay their proper portion have an unfair competitive advantage over businesses that comply with the law. From a review of the development of information technology, its impact on markets and the economy, and taking into account the challenges that have emerged for tax authorities and taxpayers in the context of the spread of pandemic, war state, the issue of transforming the tax administration system in order to implement it effectively has become even more acute. As a consequence, there is a trend towards global digitalisation of tax information, introduction of new technologies for tax administration. Strengthening compliance with tax legislation and collection of sufficient revenues is a prerequisite for filling the state budget and ensuring public needs. This is why tax authorities are digitally transforming and automating their systems. The implementation of technology can ensure successful and sustainable tax reforms, ensure proper taxation of the digital economy and reduce compliance obstacles for taxpayers. Today's challenges have led to a boom in the use of digital technologies in public administration and made it particularly relevant to implement them in tax procedures.

Apakah Kualitas Audit Dapat Mempengaruhi Agresivitas Pajak ?

Management of the company can use tax planning strategies in ways that are legal (tax avoidance) or illegal (tax evasion). However, it is crucial to remember that the nation would suffer due to the reduction in one of its primary financial sources. This study examined KAP size, audit duration, audit fees, and tax aggressiveness for companies in the food and beverage subsector listed on the Indonesia Stock Exchange (BEI) between 2017 and 2021. The data was obtained from annual reports that were posted on the official websites of the Indonesian Stock Exchange and other businesses. The sampling strategy employed was purposeful sampling, and 12 businesses were gathered over five years for 60 businesses. The method of analysis used is panel data regression analysis. The results of this study demonstrate the relationship between audit fees, audit duration, KAP size and tax aggressiveness. The size of the KAP, however, impacts tax aggressiveness in the food and beverage subsector companies listed on the Indonesia Stock Exchange between 2017 and 2021. In contrast, audit tenure and audit fees have no impact.

Moderating effect of audit quality: the case of political connection, executive compensation and tax aggressiveness

The study examines the moderating effect of audit quality on relationship between political connection, executive compensation on tax aggressive. The secondary data used for this study in the form of financial statements of 56 financial sector firms listed on Indonesian stock exchange from 2018 to 2021. Moderated Regression Analysis used for analyzed data. Result indicate, that political connection positively affected tax aggressive. These result support the view of grabbing hand theory, where a bureaucrat who occupies a position in the company will be controlled by the corporation because they get welfare. Furthermore, we find that executive compensation negatively affected tax aggressive. The result of moderation analysis show that audit quality can weaken the relationship of executive compensation on tax aggressive. These findings of this research suggest that audit quality is an effective corporate governance mechanism, thereby protecting users against the opportunism and fraud by managers. This show that corporate governance is able to mitigating information asymmetry that exist in the relation between agent and principals.

Accounting firm office size and tax aggressiveness

AbstractThis paper empirically investigates the association between the size of accounting firm offices and corporate tax aggressiveness. We find that clients audited by large offices have lower levels of corporate tax aggressiveness. We also find that such a negative relation is less pronounced when an accounting firm office provides tax services or when the office possesses tax‐specific industry expertise, and it is more pronounced when a client is financially important. The study contributes to the literature by documenting the role of accounting firm offices in influencing tax aggressiveness.

Does labor unemployment insurance affect corporate tax aggressiveness?

This paper examines the effect of unemployment insurance benefits (UIB) on corporate tax aggressiveness. Given that aggressive tax avoidance is risky and costly for the firm and its employees, we argue that low state UIB increases workers' exposure to unemployment risk and, hence, influences firms' tax strategies. Our results show a positive relation between tax aggressiveness and UIB. We also find that this relation is more pronounced for firms in industries that are more labor-intensive and firms with high financial constraints and less pronounced for firms in industries with high labor bargaining power.

AN ASSESSMENT OF THE DETERMINANTS OF EARNINGS MANAGEMENT IN NIGERIA

This study is based on the assessment of Tax Aggressiveness, Share Price, Return on Assets as determinants of Earnings Management among quoted industrial and consumer goods sectors in Nigeria between the periods of 2012-2022. A sample of thirty-two (32) firms were drawn out of the listed non-financial firms in Nigeria. The study was quantitative in nature and made use of secondary data which was sourced from the Nigerian Stock Exchange (NSE) factbook, National Bureau of Statistics, and annual reports of selected industrial and consumer goods firms. Descriptive statistics and correlation analysis was used to determine the nature of the data as well as the relationship between the independent and dependent variables. The pooled panel regression analysis, the Hausman test and the random effect model (REM) method of model estimation employed was used in the study. The findings revealed that share price and return on assets are the primary determinants that significantly affect the earnings management of publicly traded companies in the industrial and consumer goods sectors during the observed timeframe. Moreover, firm size is perceived as a significant control factor in determining earnings management. Tax aggressiveness on the other hand showed no significant impact on earnings management. Based on the findings the study recommended that Projects that enhance the firms' profitability should be at the center of the investment objective of managers overseeing industrial and consumer goods firms that are publicly traded. In addition, projects with favourable net present values should be embarked on by managers of industrial and consumer goods firms listed on the stock exchange. Furthermore, cutting edge earnings management strategies should be adopted by managers of industrial and consumer goods firms that are publicly traded. They can as well prioritize the utilization of tax aggressiveness.
 Keywords: Earnings Management, Tax Aggressiveness, Share Price, Return on Assets, Hausman Test.

Pengaruh Agresivitas Pajak, Leverage, dan Umur Perusahaan terhadap Pengungkapan Corporate Social Responsibility (CSR)

The purpose of this research is to examine and analyze the effect of tax aggressiveness on corporate social responsibility disclosure, the effect of leverage on corporate social responsibility disclosure, and the effect of firm age on corporate social responsibility disclosure. The sampling technique used in this study was purposive sampling. Researchers used secondary data, namely from annual reports and sustainability reports of mining companies listed on the Indonesia Stock Exchange from 2020 to 2022. The data analysis technique in this study used panel data regression through data processing carried out in Eviews 12 software. The results obtained in this study are as follows: (a) Tax aggressiveness has no significant effect on corporate social responsibility disclosure; (b) Leverage has no significant effect on corporate social responsibility disclosure; and (c) Company age has a positive and significant effect on corporate social responsibility disclosure.

The Impact of Corporate Social Responsibility and Institutional Ownership on Corporate Tax Aggressiveness with Firm Size as Moderating Variable

This study aims to determine the relationship between corporate social respon­sibility and institutional ownership on tax aggressiveness, focusing on firm size as moderating variables. The population of this study were companies listed on the Indonesia Stock Exchange (IDX) during 2016 until 2020. A purposive sampling approach was used in the sample selection process for this study, and the final sample was collected by 110 companies with 520 units of analysis. In this study, hypotheses were examined using structural equation modeling. The results showed that CSR disclosure had a positive effect on tax aggressiveness. Firm size positively moderates the relationship between CSR and affects tax aggressiveness. The second result, institutional ownership has a negative effect on tax aggressiveness. Firm size positively moderates the relationship between institutional ownership and tax aggressiveness. Those academic scholars, practitioners, and regulators who are interested in uncovering corporate governance score, tax avoidance, and CSR may find these findings to be of interest. Before mandating extra governance procedures for companies operating in their nation, regulators are required to first assess the legal framework in their country as well as the actual corporate governance mechanisms already in place. This paper examines the relationship between CSR and tax avoidance with a sample of all companies listed on the IDX for five years using firm size as a moderator.

Capital Intensity, Deferred Tax Expense, Company Size, Sales Growth and Tax Aggressiveness

This study analyses the effect of Capital Intensity, Deferred Tax Expense, Company Size, and Sales Growth on Tax Aggressiveness. The independent variables used in this research are capital intensity, deferred tax expense, company size and sales growth. The dependent variable used is Tax Aggressiveness. The population of this study is non-cyclical sector companies listed on the Indonesia Stock Exchange (IDX) for the 2017-2021 period. The data source used in this study is secondary data in the form of published company financial reports. This study used a quantitative method with sampling carried out using a purposive sampling method. The number of companies sampled in this study was 10 (ten). Data processing uses E-Views 9 (nine). The results of this study show that Capital Intensity, Deferred Tax Expense, Company Size, and Sales Growth do not affect Tax Aggressiveness. The difference between this research and previous research is that the year of research in this study is the year used in the last year. Besides that, the sector studied in this study differs from previous studies.

Corporate Reporting, Corporate Governance Mechanisms and Tax Aggressiveness: Evidence from Indonesia

This study aimed to empirically analyze the relationship between corporate reporting, both mandatory (financial reporting) and voluntary (Corporate Social Responsibility (CSR) disclosure) reporting, three corporate governance mechanisms (board size, independent board, and CEO duality), and tax aggressiveness in Indonesia. The study used a collected dataset of 121 public companies listed on the Indonesian stock exchange from 2016 to 2020. The data was collected from annual and sustainability reports published on the IDX and the company websites. The data was categorized based on classifications of non-financial industries because different characteristics and business cycles may influence tax aggressiveness decisions. Using the panel OLS approach, the research found that, in most industries, aggressive financial reporting positively relates, while CSR disclosures were negatively related to tax aggressiveness. The results also found that corporate governance mechanisms significantly related to tax aggressiveness in most industries. The findings suggest that board members, particularly independent boards with tax expertise and experience, can influence aggressive tax decisions. This study is the first to extract testing by industry classification, using mandatory financial reporting and voluntary CSR disclosures in Indonesia as indicators of corporate tax aggressiveness. The findings provide knowledge on company governance strategies to reduce aggressive tax actions. Keywords: aggressive financial reporting, corporate social responsibility, corporate governance mechanisms, tax aggressiveness

STRUKTUR KEPEMILIKAN DAN AGRESIVITAS PAJAK

Tax is a State taxpayer contribution that must be paid by an individual or entity that has a firm nature. Many taxpayers, especially large corporations, are trying to minimize their tax burden. One phenomenon that often occurs is companies that carry out tax avoidance and income distribution in order to pay a small tax burden in order to obtain high profits. This study aims to determine the effect of family ownership, foreign ownership, concentrated ownership, managerial ownership, and institutional ownership on tax aggressiveness in companies. Tax aggressiveness is tax planning either by way of avoidance or by tax evasion. Factors that make the ownership structure perform tax aggressiveness is dominant ownership in a company that can control the company's management for personal gain. In this study, tax aggressiveness is proxied by using the effectiveness tax rate (ETR). The sample selection in this study used a purposive sampling method. The results of this study are (1) family ownership has no evidence of tax aggressive, (2) foreign ownership is proven to influence tax aggressiveness, (3) concentrated ownership has no evidence of tax aggressive, (4) managerial ownership has no evidence of tax aggressive, (5) institutional ownershipis has no evidence of tax aggressiveness.

Effect of Liquidity, Leverage, Inventory Intensity, and Intensity of Fixed Assets on Tax Aggressiveness

Effect of Liquidity, Leverage, Inventory Intensity, and Intensity of Fixed Assets on Tax Aggressiveness

Ownership Structure and Tax Aggressiveness of Tourism Companies in Indonesia

Ownership Structure and Tax Aggressiveness of Tourism Companies in Indonesia