Companies legitimately attempt to lower their tax bills by exploiting tax loopholes; this is called tax avoidance. The purpose of this study is to examine how the Cash Effective Tax Rate (CETR) is affected by ROA, DER, and LN, in relation to tax avoidance. Agency theory, the basis of this study, states that managers tend to make decisions, including those related to corporate tax management, based on their own self-interest, rather than the interests of the owners. Using data from 112 observations from energy sector companies listed on the Indonesia Stock Exchange for the period 2021–2024, this study adopted a quantitative method with multiple linear regression. There is a negative correlation between tax avoidance and profitability, according to the study results. As profits increase, businesses are less likely to engage in tax avoidance strategies. This is in line with agency theory, which highlights the importance of reputation and owner influence on management. At the same time, there is no clear relationship between leverage and company size; this suggests that tax avoidance techniques by energy industry businesses are not always determined by their overall assets or debt levels.

Tax avoidance practices represent a crucial aspect of corporate governance, reflecting management's legal efforts to minimize fiscal obligations. Agency conflicts arise when the interests of management (agents) clash with those of owners (principals), particularly in terms of tax compliance and financial reporting. Based on agency theory, this study examines the empirical influence of independent commissioners, audit committees, executive risk preferences, and profitability on tax avoidance. Using a quantitative approach, secondary data were collected from the annual reports of BEI banks for the period 2021–2023 and analyzed using multiple linear regression after testing classical assumptions. The results indicate that, partially, only profitability has a significant positive effect. Independent commissioners, audit committees, and executive risk preferences do not have individual impacts. However, all four variables simultaneously significantly influence tax avoidance practices, confirming the relevance of oversight mechanisms and managerial characteristics in controlling corporate opportunistic behavior.

The role of local governments in tax enforcement and tax avoidance by local state-owned enterprises: evidence from China

Abstract This article explores the emergence of tax planning from the 20s to the 70s, focusing on the interplay between national tax policies and tax practices, corporate strategies, and international regulatory frameworks. Using well-documented examples of Thyssen and its successor companies’ tax issues, the analysis indicates how multinational firms exploited tax incentives, navigated legal grey areas, and shifted assets through holding structures to minimize tax burdens. It contributes to current research on the history of tax (avoidance) and considers the corporate level, which has been little researched to date. In view of the comparatively long period under investigation, it sheds light on the rationale behind tax avoidance – for companies and tax authorities alike. Tax avoidance was often not the primary objective but rather a by-product of decisions driven by political and economic considerations, such as securing property rights or financing international operations. It was only with the second wave of globalization in the 1970s that tax optimization increasingly became a central corporate goal. Combining micro-historical case studies with a macro-historical perspective on the development of the global tax architecture, this work illustrates how companies and states, through the dynamic of tax (dis)incentives and regulation, jointly shaped the landscape of international taxation – and of tax avoidances practices.

This study is motivated by the fluctuation of firm value in the Property and Real Estate sector, indicating the need to examine its determining factors. The objective of this research is to analyze the effect of profitability, tax avoidance, and capital intensity on firm value with intellectual capital as a mediating variable. This study employs a quantitative approach using secondary data from annual reports of companies listed on the Indonesia Stock Exchange during the 2019–2024 period. The sample was selected through purposive sampling, resulting in 412 observations. Data were analyzed using multiple linear regression and Sobel mediation testing. The results show that profitability has a negative and significant effect on firm value, tax avoidance has no significant effect, while capital intensity has a positive and significant effect on firm value. Profitability and capital intensity influence intellectual capital; however, intellectual capital does not mediate the relationship between the independent variables and firm value. These findings indicate that firm value in the property sector is more influenced by tangible assets than intangible assets. This study implies that effective management of productive assets is essential to enhance firm value.

Purpose ― This study aims to examine the effect of financial distress and transfer pricing on tax avoidance, as well as the moderating role of female directors, using panel data from mining companies listed on the Indonesia Stock Exchange Methods ― This study analyzes panel data of mining companies listed on the Indonesia Stock Exchange from 2020 to 2024 with 22 companies and 110 data observations. Purposive sampling and panel data regression using EViews are applied to test the research hypotheses Findings ― The results show that financial distress positively and significantly affects tax avoidance in mining companies, while transfer pricing has no significant effect. Female directors are found to weaken the impact of financial distress on tax avoidance, but they do not moderate the relationship between transfer pricing and tax avoidance. Implication ― The findings indicate that financial distress is a key driver of tax avoidance, underscoring the importance of financial risk management in constraining aggressive tax behavior. From a theoretical perspective, these results support Agency Theory, suggesting that financial pressure intensifies conflicts of interest between managers and shareholders, leading managers to engage in tax avoidance to preserve firm resources. The insignificant role of transfer pricing implies that related-party transactions are not the primary tax avoidance mechanism in the Indonesian mining sector, reflecting the effectiveness of regulatory oversight. Furthermore, the moderating role of female directors reinforces corporate governance theory and gender diversity literature, indicating that female board representation enhances monitoring quality and ethical decision-making, thereby weakening the tendency toward opportunistic tax behavior under financial distress Originality ― The originality of this study lies in analyzing the moderating role of female directors in the relationship between financial distress, transfer pricing, and tax avoidance in the mining sector, providing new evidence on the influence of board gender diversity on tax avoidance under financial pressure

This study examines how the accounting educational background of the President Director and the Director of Finance influences corporate tax avoidance (TA) among consumer goods companies in Indonesia. Using a purposive sampling method, the study analyzes 176 firm-year observations from companies listed on the Indonesia Stock Exchange (IDX) during the 2017–2021 period. Data were analyzed using descriptive statistics and multiple linear regression with SPSS version 27. The results show that the accounting background of the President Director does not have a significant effect on corporate tax avoidance. In contrast, the accounting background of the Director of Finance has a negative and significant relationship with TA, indicating that accounting expertise among finance directors enhances tax compliance. These findings suggest that executives with accounting qualifications tend to support more transparent financial reporting and ethical tax management practices. Theoretically, this study contributes to the corporate governance and tax behavior literature by highlighting differences in executive roles. Practically, the findings suggest that accounting expertise should be considered in executive recruitment to promote responsible corporate tax practices.

Tax avoidance is an action aimed at reducing taxable income through tax planning, either by complying with applicable regulations or otherwise. This study aims to examine the effect of profitability, leverage, firm size, and audit quality on tax avoidance, which is measured using the Effective Tax Rate (ETR) proxy, in nickel sub-sector mining companies listed on the Indonesia Stock Exchange (IDX) during the 2021–2024 period. This study uses secondary data with a population of 44 nickel sub-sector mining companies listed on the Indonesia Stock Exchange during the 2021–2024 period. The sampling technique used is purposive sampling, and the data are analyzed using multiple linear regression analysis. The results of this study indicate that partially and simultaneously, profitability and firm size quality have a significant effect on tax avoidance. Meanwhile, leverage and audit does not have a significant effect on tax avoidance. The practical implication of this study is that it can be used as a consideration for companies in making business decisions, particularly in their taxation activities.

Effects of financial risk on tax avoidance: Mechanisms and moderating effects

Tax avoidance and CEO turnover: evidence from China

State-backed market investors and corporate tax avoidance: Evidence from government-guided funds in China

Financial regulation and corporate tax avoidance: Evidence from China

The background of this research is driven by the increasing practice of tax avoidance in Indonesia, particularly through transfer pricing mechanisms and the utilization of corporate financing structures. This study examines the effect of transfer pricing, leverage, and good corporate governance on tax avoidance in Indonesian food and beverage manufacturing firms. This study uses a quantitative approach with secondary data from companies’ financial statements for the 2020–2024. Based on the results, transfer pricing has an insignificant effect on tax avoidance and profitability, including its mediation through profitability. Leverage has an insignificant effect on tax avoidance and a significant effect on profitability, while its indirect effect on tax avoidance through profitability is not significant. Good corporate governance has a significant effect on tax avoidance, an insignificant effect on profitability, and no significant mediating effect through profitability. Profitability itself has an insignificant effect on tax avoidance. These findings highlight that corporate governance is a more decisive factor in promoting tax compliance compared to technical instruments such as transfer pricing and leverage in the food and beverage manufacturing sector. This study contributes to the development of tax policy, the strengthening of fiscal oversight, and the improvement of corporate governance implementation in Indonesia.

Tax avoidance is a legal strategy used by companies to minimize tax burdens by taking advantage of gaps within tax regulations. This phenomenon has attracted increasing attention because it may reduce government tax revenue, particularly in manufacturing firms that often have broader opportunities for tax efficiency. This study empirically examines the effects of transfer pricing, capital intensity, and inventory intensity on tax avoidance among manufacturing companies listed on the Indonesia Stock Exchange (IDX) from 2020 to 2024. Transfer pricing refers to pricing decisions in transactions between related parties, capital intensity reflects the proportion of fixed assets to total assets, and inventory intensity measures the proportion of inventories to total assets. The study employs a quantitative approach using secondary data obtained from companies’ annual financial statements and annual reports. Samples were selected using purposive sampling based on predetermined criteria, resulting in 37 firms and a final dataset of 185 firm-year observations. Data was analyzed using multiple linear regression with SPSS version 25. The results indicate that capital intensity has a statistically significant effect on tax avoidance, whereas transfer pricing and inventory intensity are not statistically significant determinants of tax avoidance.

This study examines the effect of tax avoidance and leverage on firm value in Badan Usaha Milik Negara (BUMN) listed on the Indonesia Stock Exchange during 2021–2024. A quantitative causal approach was employed with 15 BUMN selected through purposive sampling. Secondary data were obtained from annual financial statements. Tax avoidance was measured using the Cash Effective Tax Rate (CETR), leverage using the Debt to Equity Ratio (DER), and firm value using Tobin’s Q. Panel data regression with the Fixed Effect Model (FEM) was applied using EViews 12. The results show that tax avoidance and leverage have no significant effect on firm value, either partially or simultaneously. The results show that tax avoidance and leverage have no significant effect on firm value, either partially or simultaneously. This indicates that BUMN firm value is influenced by factors beyond tax policy and capital structure.

This study aims to examine the influence of executive character, capital structure, and sales growth on tax avoidance in primary consumer goods companies, particularly the food and beverage sub-sector listed on the Indonesia Stock Exchange (IDX) during 2019–2024. The research applies a quantitative approach using descriptive analysis and multiple linear regression, with data processed through EViews 13. The sample was determined through purposive sampling, resulting in 22 companies and 132 firm-year observations. Financial data were collected from audited annual reports available on the IDX official website and each company’s website. The findings indicate that executive character, capital structure, and sales growth simultaneously have a significant impact on tax avoidance. Partially, executive character shows a significant negative effect, suggesting that executives with strong ethical values are less likely to engage in aggressive tax avoidance strategies. In contrast, capital structure and sales growth do not significantly influence tax avoidance practices. Overall, the study emphasizes the role of ethical leadership and corporate governance in enhancing tax compliance. It also provides practical implications for policymakers and stakeholders in promoting responsible tax behavior and sustainable corporate practices in emerging markets

The increasing presence of foreign workers in Indonesia as a result of globalization has created challenges in the imposition of Income Tax, particularly related to tax avoidance practices. Although the taxation of foreign workers has been normatively regulated under Indonesian tax laws, in practice there remain legal loopholes and weak supervision that allow tax avoidance to occur. This study aims to analyze the legal framework governing Income Tax on foreign workers, identify common forms of tax avoidance, and examine the available legal mechanisms for their resolution. This research employs a normative legal research method using statutory and comparative law approaches. The findings indicate that tax avoidance by foreign workers commonly occurs through dual payroll schemes, manipulation of reported income, and non-compliance in reporting foreign assets. Furthermore, enforcement through administrative and criminal sanctions has not yet been fully effective. A comparison with Malaysia shows that preventive administrative measures are more effective in reducing tax avoidance by foreign workers.

The research raises critical concerns regarding the declining tax realization and widespread tax avoidance, resulting in substantial revenue losses for the state. Additionally, it underscores the need for improved tax policy implementation and greater societal awareness to address these issues and enhance taxpayer compliance, ultimately optimizing regional or state revenues from the tax sector. This research aimed to analyze the influence of socialization, information technology, attitudes, knowledge and abilities on Taxpayer Compliance with awareness, volition as intervening, and tax avoidance as moderation on individual taxpayers in the city of Surabaya. This research employs an explanatory design. The population for this study consists of individual taxpayers registered with the KPP East Java Region I, totaling 3,042,548 people in 2020. A sample of 400 respondents was chosen using the Slovin formula to represent this population. Data analysis was conducted using Smart PLS. We found that socialization positively influenced taxpayer awareness, negatively impacted volition and taxpayer compliance. Information technology had mixed effects, showing insignificant influence on some factors. Attitude significantly affected awareness and volition but had an insignificant influence on compliance. Knowledge strongly influenced awareness, volition, and taxpayer compliance. The ability to pay taxes had a positive impact on awareness, volition, and taxpayer compliance. Additionally, awareness and volition had mixed influences on taxpayer compliance when moderated by tax avoidance. These findings confirm or contradict previous research regarding taxpayer behavior and compliance.

Tax avoidance exploits legal loopholes, costing governments billions – USD 348 billion in 2024 alone. EU law fights back with the “artificial arrangement” doctrine, but vague criteria have led to inconsistent application by the courts. This article merges the legal world with the world of computer science, where insufficiently clear doctrines can be resolved by computational thinking and machines. When lex ferenda is not achieved, it is worth considering solutions beyond traditional legal reform because justice can be served through innovation.

This study aims to analyze the influence of financial distress and environmental uncertainty on tax avoidance. As well as analyzing the moderation effect of business strategies on the influence of financial distress and environmental uncertainty on tax avoidance. This study includes quantitative research, the population is a manufacturing company in IDX in 2021 – 2023, the determination of samples uses purposive sampling. The sample is 81 companies. Using secondary data. Data analysis uses Moderated Regression Analysis (MRA). The results of the study concluded that financial distress had a significant effect on tax avoidance in manufacturing companies in 2021 – 2023. However, environmental uncertainty has no effect on tax avoidance in manufacturing companies in 2021 – 2023 while business strategy moderates the influence of environmental uncertainty and financial distress on tax avoidance in manufacturing companies in 2021 – 2023.