Tax Management Research Articles

Unveiling the factors shaping corporate tax behavior: an empirical study

Research aims: This research investigates the determinants of corporate tax management practices through an empirical analysis. It examines the influence of various factors, including profitability, leverage, capital intensity ratio, presence of independent commissioners, firm size, and access to tax facilities.Design/Methodology/Approach: Multiple linear regression analysis was employed as the research methodology. The study focused on manufacturing companies in the basic industrial and chemical sectors listed on the Indonesia Stock Exchange during the period from 2018 to 2021, utilizing a purposive sampling approach—the final sample comprised 18 companies that met the specified criteria.Research Findings: The results indicated that profitability and tax facilities exhibited a negative impact on tax management, while leverage had a positive influence. Conversely, the capital intensity ratio, presence of independent commissioners, and company size did not significantly affect tax management.Theoretical Contribution/Originality: Effective tax management can enhance company compliance with tax obligations and mitigate the likelihood of aggressive tax strategies.Practitioner/Policy Implications: This research provides a valuable benchmark for companies to implement sound tax management practices aligned with tax regulations. Additionally, it offers insights for policymakers to refine tax regulations accordingly.

Analysis on tax management and risk control of enterprise management decision

In today's complex and changeable business environment, enterprises are faced with many business decision-making problems. As an important part of enterprise management, tax plays a key role in enterprise management decision-making. Tax management involves tax planning, tax compliance and tax risk management of enterprises, which directly affects the operating results and profits of enterprises. At the same time, risk control is a factor that can not be ignored in business decision-making, and enterprises must make a balance between risk and return. Therefore, it is of great significance to study the relationship between tax management and risk control for improving the effect of enterprise management decision.

Optimizing Tax Revenue Through Strategic Management Utilizing Tax Gap Dashboard In Indonesia

Tax revenue plays a crucial role in the development and sustainability of a nation. However, significant challenges are faced in optimizing tax revenue, including tax compliance issues and the imbalance between the tax obligations that should be paid by taxpayers and what is actually paid. To address these challenges, it is important to implement effective strategies and appropriate technology in tax administration. This research aims to analyze the optimization of tax revenue through a strategic management approach utilizing the Tax Gap dashboard by the Directorate General of Taxes. Using a qualitative method, this study seeks to gain an in-depth understanding of the concept of strategic management and the implementation of the Tax Gap dashboard in the context of tax administration. The qualitative method was chosen because it allows for a deeper exploration of the strategies employed by the Directorate General of Taxes as well as a more holistic understanding of the role of the Tax Gap dashboard technology in enhancing tax administration effectiveness. Data collection methods in this study were conducted through a thorough review of literature related to the research topic, such as academic journals, articles, government reports, and other official sources. In this process, the researcher investigated various data sources to gather relevant information about the implementation of tax management strategies and the utilization of the Tax Gap dashboard by the Directorate General of Taxes. The conclusion of this research summarizes the main findings and provides recommendations for improving the effectiveness of strategies implemented by the Directorate General of Taxes.

Analysis of Contribution and Effectiveness of Local Taxes and Levies on Southeast Sulawesi Revenue

The research aims to assess the contribution of local taxes and levies to Southeast Sulawesi Province's original income and evaluate their effectiveness. Utilizing quantitative descriptive research, findings indicate a consistent high contribution of local taxes from 2018 to 2022, ranging between 98.99% to 99.25%. This demonstrates their significant role in surpassing the 90% mark, thus positively impacting the province's Original Income. Conversely, levies exhibit unsatisfactory performance during this period, with contributions declining notably, hitting a low of 0.01% in 2022. In terms of effectiveness, local taxes consistently surpassed the 100% mark from 2018 to 2021, showcasing successful revenue targets attainment. Although a slight dip occurred in 2022 to 95.81%, local taxes remained effective. Conversely, levies demonstrated exceptional effectiveness in 2018 and 2019, exceeding 120%, indicating proficient management and surpassing revenue targets. The reciprocal relationship between the government and the people, as per stakeholder theory, underscores how effective tax management influences the province's welfare. The positive correlation between local taxes, levies, and regional income stems from improved tax collection principles enforced by stakeholders. In conclusion, while local taxes significantly contribute to regional income, effective levy management is crucial. This study underscores the importance of leveraging tax resources for societal welfare, highlighting the need for continuous evaluation and improvement in tax management strategies.

Analisis Pengaruh Organizational Capital terhadap Tingkat Penghindaran Pajak Perusahaan Pertambangan yang Terdaftar di Bursa Efek Indonesia

This study aims to analyze the effect of organizational capital on corporate tax avoidance. The population of this study are mining companies listed on the Indonesia Stock Exchange in the 2012-2021 periods. Using panel data regression with the common effect model, the results of the study found that organizational capital has a negative and significant effect on corporate tax payments. In other words, high organizational capital can increase corporate tax avoidance. Companies that are able to manage organizational capital properly will be able to create organizational efficiency, one of which is through tax management that the company will choose. This study confirms previous findings that organizational capital creates organizational innovation and organizational learning abilities in related to tax avoidance. This study also strengthens the previous findings that companies with high organizational capital have a greater chance of tax avoidance. The research has implications for the company's internal policy as a taxpayer to increase its organizational capital so that it can have an effective management. On the other hand, the tax authorities can make policies that support the creation of compliant taxpayers and ethical corporate tax management.

Tax compliance auditing as a tool for detecting and preventing tax risks for the detection and prevention of tax risks

Tax auditing is a fundamental practice in financial management, evolving from its origins in Great Britain to become an essential global tool. Its objective is to evaluate and verify financial information to ensure regulatory compliance and transparency. This study analyzed good practices in tax audits, highlighting the importance of planning, impartiality and regulatory compliance. Innovative methodologies, such as data analysis and risk-based auditing, were also explored to improve process efficiency. The results highlighted the need for effective tax management and the prevention of economic crises in organizations. In conclusion, tax auditing is crucial to ensure compliance with tax obligations and improve the financial management of organizations, promoting transparency and efficiency in the management of financial resources.

The influence of corporate social responsibility, investment opportunities, and profitability on tax avoidance

The analysis conducted on the relationship between Corporate Social Responsibility (CSR), Investment Opportunity, Profitability, and Tax Avoidance in Energy Sector Companies listed on the Indonesia Stock Exchange between 2017 and 2021 has yielded significant insights. While the influence of CSR on Tax Avoidance was found to be insignificant, both Investment Opportunity and Profitability demonstrated notable effects, with the latter displaying a negative influence. Furthermore, the combined impact of CSR, Investment Opportunity, and Profitability on Tax Avoidance was found to be substantial, explaining 63% of the observed variance. These findings underscore the intricate relationship between corporate practices, financial performance, and tax management strategies, offering valuable implications for various stakeholders. In light of these conclusions, several recommendations can be drawn. Firstly, collaboration between tax authorities and relevant stakeholders is essential to refine tax policies, integrating sustainability considerations and ensuring transparency in corporate tax practices. Secondly, investors should adopt a comprehensive approach when assessing investment opportunities, taking into account factors beyond financial performance, including corporate social responsibility and tax management strategies. Additionally, companies are encouraged to enhance their disclosure practices concerning CSR activities, thereby promoting greater transparency and accountability. Finally, future research efforts should focus on expanding the scope of analysis across different sectors and incorporating additional variables to deepen our understanding of tax avoidance dynamics in the Indonesian context. By implementing these recommendations, policymakers, tax authorities, investors, and corporate entities can collectively contribute to fostering a more responsible and sustainable business environment.

The Role of Tax Management as a Moderator in the Effect of Tax Retention Rate and Good Corporate Governance on Earning Quality

The industrial sector plays a very important role in people's lives, as it is the part of the economy that is responsible for the production of goods and services. The primary objective of this research is to empirically explore the dynamic between Tax Retention Rate and Good Corporate Governance concerning Earning Quality, while simultaneously investigating the potential moderating role of Tax Management. Meanwhile, Good Corporate Governance is a critical factor that can affect the integrity and transparency of the company in carrying out its operations. Earning Quality, as a measure of the quality of a company's earnings, is the main parameter in measuring the company's financial performance. The study's research design follows quantitative and associative methodologies. The research population encompasses companies within the industrial sector, as listed on the Indonesia Stock Exchange during the temporal span from 2017 to 2021. Employing a purposive sampling technique, a sample comprising 15 companies, leading to a dataset of 75 observed data points, was selected. To conduct the analysis and hypothesis testing, panel data regression analysis was employed, utilizing Eviews version 12 as the analytical tool. The outcomes of the T-test analyses are noteworthy, as they reveal that both the tax retention rate variable and the good corporate governance variable distinctly influence earning quality. However, the importance of tax management as a mediator in the correlation between tax retention rate and earning quality is insignificant. The findings of this study are expected to provide new insights for stakeholders, regulators, and business practitioners in optimizing tax management and maintaining the quality of corporate profits in the Indonesian capital market environment.

Effectiveness of Land and Building Tax Management in Oeteta Village, Sulamu District, Kupang District

This research aims to determine the effectiveness of Land and building tax management in Oeteta Village, Sulamu District, Kupang Regency. To discuss the results of this research, Terry (2006:342) used management functions, namely planning, organizing, implementing and controlling, then explained using Jogiyanto's (2017) system theory, namely input, process and performance results. The research method uses a qualitative description approach, combining data collection techniques, namely observation, interviews and literature study. Data analysis is inductive/qualitative, with an interactive model created by Miles, Huberman, and Sugiyono (2012: 246). The results of the research emphasize the meaning of generalization, which shows that (1) Input through cooperation and coordination between BAPENDA, the Sulamu Regency government and Oeteta Village, provision of counter facilities at the Village Office and human resources by determining tax collectors from the District and 3 RT people in Oeteta village. (2) the process of organizing and mobilizing is in the payment and collection of taxes, where fraud, irregularities and violations occur regarding the use of tax money by PBB collectors for personal needs. (3) output: There is no strict supervision by BAPENDA of billing officers, and there needs to be reporting from Oeteta Village and Sulamu District to BAPENDA Kupang Regency so that they can be accounted for. Based on the description above, BAPENDA's supervision can be further improved. The attitude of PBB collection officers and the absence of strict tax sanctions result in the misuse of tax money, so the public/taxpayers do not want to pay PBB.

Pengaruh Kompensasi Manajemen, Kepemilikan Institusional dan Intensitas Persediaan terhadap Manajemen Pajak

This research aims to test and obtain empirical evidence regarding management compensation, institutional ownership, and inventory intensity on tax management in non-cyclical consumer sector companies listed on the Indonesia Stock Exchange for the 2018-2022 period. The type of research used is quantitative research with secondary data in the form of annual reports for the 2018-2022 period obtained from the official website of the Indonesian Stock Exchange and the official websites of each company. The total population is 114 companies in the Consumer Non-Cyclicals sector for the 2018-2022 period, the number of samples in this study is 105 observation data from 21 companies in the Consumer Non-Cyclicals sector for the 2018-2022 period which was obtained using the purposive sampling method. The data analysis technique used is descriptive statistics and panel data regression analysis using eviews-10. The research results based on simultaneous tests with the f test state that management compensation, institutional ownership, and inventory intensity have a simultaneous and significant effect on tax management. based on a partial test with a t test, it states that management compensation has no effect on tax management, institutional ownership has a significant effect on tax management, and inventory intensity has no effect on tax management.

Investors’ Reaction: Exploring Supervisory Function and Corporate Tax Policy

Purpose: This study aims to analyze investor reactions to the supervisory function carried out by independent commissioners and audit committees, especially in supervising corporate tax policies taken by management. Theoretical framework: Corporate tax policy has the risk of tax penalties in the future and risks reducing investment returns in the future, so the role of independent commissioners and audit committees should be able to supervising management so that the tax policies taken do not harm investors. Method: 565 panel data from manufacturing companies on the Indonesia Stock Exchange 2015-2022 were analyzed with a quantitative approach and multiple linear methods using STATA. Result: This study found that independent commissioners encourage management in tax burden minimization policies, while the audit committee is not optimal in carrying out its supervisory function over corporate tax management policies. In addition, investors react to the audit committee because it is considered capable of carrying out the supervisory function of management, while investors do not react to independent commissioners and corporate tax policies. Research, Practical & Social implications: The results of this study encourage entities to increase the role of independent commissioners in carrying out supervisory functions such as the audit committee in order to get a positive response from investors which can increase company value for sustainability business. Originality/value: In this study, corporate tax policy is measured by reducing the statutory tax rate with a tax compliance ratio that is rarely used in previous studies, resulting in how much corporate tax policy minimizes the tax expense.

Implementasi good corporate governance, whistleblowing system dan risiko sanksi pajak terhadap kepatuhan wajib pajak

Tax compliance still needs to be improved by encouraging the implementation of transparent taxation, namely the transparency of tax management in all areas, both administrative and management of the use of funds derived from tax revenue. The real effort that must be done to implement the transparency is through the bureaucracy reform movement in the service system and tax administration that is through the implementation and implementation of Good Governance. Good governance is a well-executed organizational governance, by carrying out the principles of openness, justice and accountability in order to achieve the goals of the organization. The problems that will be studied by the researcher is a social and dynamic problem. Therefore, the researcher chooses to use quantitative research method to determine how to find, collect, process and analyze the data of the research result, so that this research is expected to give input for the need of strengthening of harmony between Good Corporate Governance and Whistleblowing System and the need to create system or policies and operational procedures of taxation sanction risk required for tax compliance implementation. The results showed that there is influence between the implementation of Good Corporate Governance to tax compliance, there is influence between Whistleblowing System on tax compliance, there is influence between Taxation Sanction on tax compliance.

Economic policy uncertainty and tax avoidance: International evidence

In this study, we investigate how economic policy uncertainty (EPU) influences corporate tax avoidance using a dataset of listed firms from 22 countries spanning 1999 to 2019. Our findings align with the agency motive, showing that as EPU increases, firms tend to decrease their tax avoidance practices. Further analysis reveals that this negative relationship is particularly strong among unconstrained firms. We also observe that strong firm-level governance is associated with reduced tax avoidance during periods of heightened EPU. Furthermore, we investigate how institutional characteristics at the country level influence the relationship between EPU and firms' tax avoidance strategies. We find that firms in countries with strong governance, situated in developed economies, and adhering to stringent auditing standards are less inclined to engage in tax avoidance amid increasing EPU. Conversely, firms in countries with low GDP per capita, low governance scores, and located in emerging economies demonstrate a positive association between tax avoidance and EPU. Overall, our research highlights EPU as a key driver of corporate tax management, offering policymakers valuable insights into its potential impact on tax planning.

The Influence of the Board of Commissioners, Management Compensation, and Independent Commissioners on Tax Management

This research aims to analyze the relationship between the board of commissioners, management compensation, and independent commissioners and tax management in companies. The research method used is an associative method by collecting data from public companies listed on the stock exchange. Statistical analysis was carried out using simple linear regression techniques to evaluate the relationship between the variables studied. The research results show that management compensation has a significant relationship with tax management practices, while the board of commissioners and independent commissioners also have a significant influence. The implications of these findings are discussed in the context of corporate management and tax policy.

Понятийный аппарат и практика оценки и контроля налоговых рисков субъектов предпринимательства в условиях изменчивости налоговой среды

Tax risks are situations in which an enterprise may face loss or damage related to taxation as a result of incorrect application of tax rules, incorrect interpretation of legislation or other circumstances that may lead to negative financial consequences. Enterprises often suffer losses either due to tax due to the accountant's ignorance of tax legislation, or due to the excessive riskiness of the accountant's decision-making and subsequent accrual of penalties, fines, additional payments and even litigation. However, methodological foundations and methodological apparatus for assessing tax risks of business entities have not yet been fully studied. It is accurately proved that study of tax risks classification contributes to more accurate accounting, analysis and management of financial risks of an enterprise, as well as helps to comply with laws and regulations, which is a key factor for successful and sustainable operation of any company. There is an extensive classification of tax risks according to different principles: by type of tax risk, by the source of occurrence (by risk determining factors), according to the time of occurrence, according to the amount of possible losses, according to the type of tax risks consequences, according to the object of connection with other types of risks, according to the nature of consequences, according to the possibility to overcome, and according to the level of probability of tax risks occurrence. Tax risk assessment is an important and integral part of the enterprises tax management in the Russian Federation. This process allows business entities identifying and analyzing potential threats and negative consequences related to taxation, and develop strategies to minimize and manage them. The purpose of the study is to analyze tax risks which enterprises in the Russian Federation face and to develop methods and recommendations for their assessment and management in order to ensure financial stability and compliance with tax legislation. The methodology of the study is formed of standardized methods to assess the degree of compliance of the enterprise tax practice with applicable laws and standards. Empirical methods, in particular the analysis of statistical data, and case studies are used. As a result, the key factors influencing tax risks occurrence are highlighted. Modern methods of assessing tax risks matrix are summarized and practice of applying of tax risk analysis matrix and matrix of paired preferences of tax risks is presented. Ways to minimize tax risks were proposed using the example of LLC Krasnaya Polyana Agro-Industrial Complex, and a scheme of its tax risk control system was proposed. The results of tax risk assessment serve the basis for the development of tax strategies and risk management processes. Enterprises can minimize tax risks by optimizing the tax strategy proposed by the authors, creating reserves and constantly monitoring tax environment changes.

Construction of Enterprise Financial Compliance Management System in the Context of Digital Taxation

In the context of digital taxation, constructing an enterprise financial compliance management system is an important means to ensure compliance with tax regulations, optimize tax management, and improve economic efficiency. As a crucial component of modern tax administration, "digital taxation" imposes new requirements on enterprise financial compliance management. This paper aims to explore how to construct an effective enterprise financial compliance management system under the backdrop of "digital taxation" to enhance the quality of accounting information and financial compliance, thereby reducing financial and tax risks and promoting the sustainable development of enterprises.

The Effect of Financial Ratios and Company Size on Tax Management in Manufacturing Companies Listed on The Indonesia Stock Exchange in 2019-2022

The Effect of Financial Ratios and Company Size on Tax Management in Manufacturing Companies Listed on The Indonesia Stock Exchange in 2019-2022

Strategi Optimalisasi Pendapatan Pajak Daerah Untuk Meningkatkan Kemandirian Keuangan (Analisis di Kota Pekanbaru)

This research aims to analyze the contribution of local taxes to Local Own Source Revenue (PAD) and to identify the level of fiscal independence of the region in Pekanbaru City. The research method used is secondary data analysis from the realization data of local taxes and PAD from 2018 to 2022 obtained from the Pekanbaru City Revenue Agency. The data is then analyzed using descriptive statistical techniques to identify trends in the contribution of local taxes to PAD and the level of fiscal independence of the region during this period. The analysis results show that the contribution of local taxes to PAD in Pekanbaru City ranges from 80% to 93% during this period, with an increasing trend every year. However, fiscal independence of the region is still in the category of "Towards Fiscal Independence," with PAD contributions ranging from 25% to 33% of the total Regional Revenue in the Regional Budget. The study concludes that although local taxes have become the main backbone for PAD in Pekanbaru, fiscal independence of the region needs to be strengthened with measures such as re-registering taxpayers and improving the efficiency of local tax management.

Perencanaan Penghapusan Piutang Pajak Bumi dan Bangunan Perdesaan dan Perkotaan di Badan Pendapatan Daerah Kota Bandung

Perencanaan Penghapusan Piutang Pajak Bumi dan Bangunan Perdesaan dan Perkotaan di Badan Pendapatan Daerah Kota Bandung

Tax Evasion in Chachapoyas: A Problem That the Ia Can Solve

In a changing business environment, tax evasion poses a crucial challenge that impacts public finances and competitive equity. This study focuses on applying artificial intelligence in the tax management of micro and small enterprises (MSEs) in Chachapoyas, Peru, between 2018 and 2022. The objective of this study is to investigate how the application of artificial intelligence in the tax management of micro and small enterprises (MSEs) in Chachapoyas, Peru, can contribute to greater tax equity and strengthen corporate social responsibility, thus fostering a fairer and more supportive tax environment in the community. The proposed methodology involves collecting and analyzing the financial statements of micro and small enterprises (MSEs), as well as conducting interviews and questionnaires with their owners. It will focus on five specific objectives ranging from the identification of the causes of tax evasion to the evaluation of MSEs' willingness to adopt technologies in their tax management. In conclusion, promoting the adoption of artificial intelligence could strengthen trust in the tax system, increase tax collection for the common benefit and support the sustainable development of local businesses, generating a positive impact on the community and society as a whole.