Tax Avoidance Policy Research Articles

Penghindaran Pajak : Suatu Kebijakan Atau Suatu Strategi Pada Perusahaan

This research focuses on whether a tax avoidance policy or a strategy is carried out in manufacturing companies. The policy variable uses managerial ownership with the Good Corporate Governance factor and for strategy uses business risk/company risk variables. The research was conducted using data from three years 2019-2021 with 84 manufacturing companies. The research method uses quantitative statistical analysis methods. And the sample was taken using purposive sampling method. The results of the study stated that managerial ownership has the most dominant effect compared to business risk/company risk on tax evasion. Company policies with Good Corporate Governance factors are more accurate dominant than the company's business risk strategy for not doing tax evasion.Keywords: Tax Avoidance, Managerial Ownership, Good Corporate Governance, Business risk

Sales Growth Memoderasi Pengaruh Intensitas Aset Tetap dan Profitabilitas Pada Tax Avoidance

Tax revenue in Indonesia has decreased since 2020. The decline in tax revenue in Indonesia can be caused by the implementation of tax avoidance policies. The purpose of this study is to empirically examine the effect of fixed asset intensity and profitability on tax avoidance in the food and beverage sub-sector for companies listed on the IDX in 2012–2021, which is moderated by sales growth. The sample for this study was 12 companies with 120 amateurs obtained by purposive sampling technique. The research data was processed using SPSS software and analyzed using the MRA test. The test results obtained showed that the intensity of fixed assets and profitability showed a negative effect on tax avoidance, sales growth had no effect on moderating the intensity of fixed assets on tax avoidance, and sales growth strengthened the effect of profitability on tax avoidance.
 Keywords: Fixed Asset Intensity; Profitability; Sales Growth; Tax avoidance

The Impact of Corporate Governance and Fiscal Loss Compensation on Tax Avoidance Policies: Indonesian Banking Sector

The Impact of Corporate Governance and Fiscal Loss Compensation on Tax Avoidance Policies: Indonesian Banking Sector

The Effect of Institutional Ownership and CSR as Mediating Variables on Tax Avoidance on Conventional Banks in Indonesia

Tax avoidance is a violation by companies with the aim of easing the payment of the tax burden through tax policies made by the State, even though tax avoidance has no legal basis, this will have a negative impact so that the state's income from tax revenues will be reduced, especially in Indonesia. The purpose of this study was to analyze the effect of institutional ownership and CSR as a mediating variable on tax avoidance in conventional banks in Indonesia. The implication of the research that has been done is to provide information for managers, especially financial managers in making decisions and tax avoidance policies that are carried out so that businesses do not harm both internal and external parties. The independent variables of this study are institutional ownership, CSR, and control variables consists of firm size, leverage, and return on assets. While the dependent variable is tax avoidance. The study was conducted by collecting data from 28 conventional banks in Indonesia listed on the Indonesia Stock Exchange in the 2018-2021 period. And using the panel data regression model in the test. The results of this research show that institutional ownership has no effect on tax avoidance. Institutional ownership has negative and significant effect on CSR. CSR has no effect on tax avoidance. Firm size has positive effect on tax avoidance. Leverage has no effect on tax avoidance. Return on assets has positive effect on tax avoidance. The implications of the research conducted can provide information to conventional bank financial managers regarding tax avoidance not to harm many parties. For investors, the information provided can determine whether the bank is paying taxes properly or not.

The Effect of Corporate Governance and Company Size on Tax Avoidance

Purpose – This study aims to examine the effect of corporate governance and company size on tax avoidance in manufacturing companies.
 Methodology – The population includes all the manufacturing companies listed on the Indonesia Stock Exchange during 2017-2019 and the 288 companies used as samples were selected through the purposive sampling method. A regression model was used for analysis.
 Findings – The results showed that institutional ownership, independent commissioners, and audit committee did not affect tax avoidance but managerial ownership and firm size have some influence. It was recommended that companies improve good governance by reducing their tax avoidance policies while other variables such as audit quality, executive character, liquidity, accounting conservatism, and capital intensity are suggested to be added to further studies related to tax avoidance.
 Originality – The novelty of this study is examine all corporate governance mechanisms consist of institutional ownership, independent commissioner, audit committee, and managerial share ownership on tax avoidance.

The Effect of Institutional Ownership, Fiscal Loss Compensation, and Accounting Conservatism on Tax Avoidance

This research intends to examine the impact of institutional ownership, fiscal loss compensation, and accounting conservatism on tax avoidance in mining companies listed on the Indonesia Stock Exchange. The sample collection procedure used is purposive sampling. The sample of this research is mining companies listed on the Indonesia Stock Exchange from 2016-to 2019. Procedure analysis was used in this research is multiple linear regression. The research findingsindicateno effect of institutional ownership, fiscal loss compensation, and accounting conservatism on tax avoidance. The implications of this research are to provide information for management to make decisions by considering the impact of each decision taken if the company implements tax avoidance policies and provide information for investors in assessing the factors that can influence companies to practice tax avoidance.

How can governments tax multinational enterprises more fairly? A discourse analysis

Extant research has identified numerous causes for multinational enterprises (MNE) tax avoidance and formulated a variety of remedial policy solutions. Yet despite being consistently decried as societally unfair, these contested practices persist. We reveal the conflicting and complementary ideologies and worldviews that reside in the background of MNE tax avoidance policy deliberations. Analysis of primary interviews with accounting and tax regulatory agencies, Members of the UK Parliament, and public hearings with MNE representatives, shows these different groups draw on four different discourses: globalism, idealism, pragmatism and shareholder interest. These exist in what we show to be a kind of precarious truce that allows these contested practices to continue in the face of robust critique. Prospects for taxing MNEs are enhanced if legislators, civil servants and regulators can draw more coherently on the discourse of idealism because this is most resistant to the logic of the market.

The Bright Side of Tax Avoidance: The Case of Foreign Competition

We investigate the link between foreign competition and corporate tax planning. We find that a one standard deviation increase in import competition leads to a reduction of 9% in firms’ effective tax rates relative to standard levels. Further, we document that our evidence is robust to a battery of sensitivity tests and endogeneity concerns. Cross-sectional analysis shows that the association between foreign competition and tax planning is most pronounced among firms that: (i) are financially constrained; (ii) have the greatest ability to implement tax avoidance policies; (iii) have strong alignment of incentives between managers and shareholders; (iv) appoint high-quality auditors; and (v) attract more analyst coverage. Additional tests reveal that tax planning in the presence of foreign competitive threats enhances firm performance and investments, and improves managers’ career outcomes. Overall, we provide the first large-scale evidence that changes in the macroeconomic external environment are an important determinant of corporate tax planning activities.

The Effect of Foreign Institutional Ownership on Corporate Tax Avoidance: International Evidence

This study examines whether foreign institutional investors (FIIs) help explain variation in corporate tax avoidance and whether mechanisms such as tax morality, investment horizon, and corporate governance underlie the relation between FIIs and tax avoidance. We find robust evidence that FIIs are negatively associated with corporate tax avoidance. Moreover, this negative association is dominated by FIIs from countries with high tax morality, FIIs with long-term investment horizons, and FIIs from countries with high corporate governance quality. We conclude that FIIs play an active role in shaping corporate tax avoidance policy.

Financial expertise and corporate tax avoidance

ABSTRACTThis study examines financial expert CEOs as one of the determinants of corporate tax avoidance. We conjecture that financial sophistication motivates CEOs to approach tax avoidance as an investment. We investigate the relationship between financial expert CEOs and tax avoidance both at the conditional mean and across tax avoidance distribution. Consistent with our conjecture, we find that financial expert CEOs are associated with a more aggressive tax avoidance policy. Further, our results indicate that the impact of financial expert CEOs results from a careful analysis of cost and benefit.

Organization studies of inequality, with and beyond Piketty

Thomas Piketty’s Capital in the 21st Century did much to bring discussions of economic inequality into the intellectual and popular mainstream. This article indicates how business, management and organization studies can productively engage with Piketty’s book. It does this by deriving practical consequences from Piketty’s proposed division of intellectual labour in general and his account of ‘super-managers’ in particular. There are organizational specificities to inequality which Piketty’s framework does not address, however. His account of corporate governance, of tax avoidance policy and of financialization, in particular, requires significant conceptual and empirical supplementation. We argue that business, management and organizational scholars should contribute to the cross-disciplinary inequality research project which Capital in the 21st Century proposes not despite these limitations but because of them.

An experimental analysis of tax avoidance policies

Policies to reduce aggressive tax avoidance are increasingly being implemented or discussed in many countries around the world. Tax authorities hope that such policies will generate new tax revenue by increasing overall tax compliance. We present an experimental design to investigate the effect of a stylized anti-avoidance tax policy on tax compliance behavior. We highlight that anti-avoidance tax policies that reduce tax avoidance can also induce an increase in tax evasion (“substitution effect”), which limits the additional tax revenue these policies will generate. We show that the degree of substitution depends crucially on behavioral factors such as tax morale. Policymakers therefore also need to consider behavioral features while designing such policies and estimating their potential effects.

Information Flows, Tax Avoidance Policy and Firm-Level Institutional Variation: International Evidence

Using a large sample from 14 Offshore Financial Centers (OFCs) and from 35 non-OFC countries and jurisdictions, we investigate the extent to which firm-specific information flows are capitalized into stock prices measured by stock price synchronicity. Moreover, we explore the firm-specific information flows of U.S. and U.K. companies that set up affiliates in an OFC or OFCs. We find that synchronicity is higher via a firm’s operations in OFCs, either through direct legal registration or incorporation or, indirectly, through subsidiaries and affiliates than non-offshore companies. Our evidence is important, because it reveals the intertwined effects between tax avoidance policy and firm-level institutional variation on the impounded firm-specific information into stock prices. Furthermore, we also find that the extent of synchronicity varies regarding offshore attributes.

Framing Justice: Taxpayer Evaluations of Personal Tax Burdens

This study examines how taxpayers evaluate the distributive justice of personal income tax burdens. Using the concept of framing from behavioral decision theory, we suggest that taxpayers employ either an outcome-processing or a norm-processing frame of tax fairness evaluation. Framing is affected by substantive tax policies and the tax situations of individuals. Taxpayers who qualify for tax deductions and other tax preferences employ an outcome-processing frame and focus on perceived abuses of government power when evaluating fairness. Those unable to claim tax breaks employ a norm-processing frame and focus on vertical social comparisons and their inability to qualify for valued tax breaks. The findings suggest that tax avoidance policies have the net effect of increasing public perceptions of unfairness in the tax system.