Analyzing and Formulating a Statutory General Anti-Avoidance Rule (GAAR) in Indonesia (original) (raw)
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Tax avoidance has been a concern to revenue authorities since the time that the concept of tax was first introduced. Revenue authorities worldwide constantly strive to ensure taxpayer compliance, while combating impermissible tax avoidance. South Africa uses a general anti-avoidance rule (GAAR) as part of its arsenal to combat the increasingly innovative ways in which taxpayers seek to minimise their tax. However, the GAAR has been the source of much criticism and its effectiveness in combatting impermissible tax avoidance is untested in the courts. Therefore, the use of hindsight to criticise the GAAR is not possible. This study applied a qualitative approach to compare the South African, Australian and Canadian GAARs in order to propose changes which are intended to improve the efficacy of the South African GAAR. This research was performed by first comparing the three GAARs using a doctrinal research methodology and then applying the South African GAAR to the facts of selected ca...
The effect of internal control on tax avoidance: the case of Indonesia
Journal of Economics and Development, 2019
Purpose-The purpose of this paper is to analyze the effect of internal control on tax avoidance analyzing internal (family ownership) and external (environmental uncertainty) factors on the effectiveness of internal control in preventing tax avoidance. Design/methodology/approach-First, the authors examine the direct effect of the effectiveness of internal control on tax avoidance. Second, the authors examine the effect of moderation of family ownership and environmental uncertainty on the relationship of the effectiveness of internal control on tax avoidance. Third, the authors divide the full sample into two groups, high and less effectiveness of internal control to examine the direct effect of internal control effectiveness on tax avoidance and when considering moderating variables. Fourth, the authors use two different measures of the effectiveness of internal control. Findings-This research found that effective internal control can reduce tax avoidance. Family ownership affects the relationship between internal control and tax avoidance, but environmental uncertainty does not influence the relationship between internal control and tax avoidance. Practical implications-Internal control increases compliance with rules and policies, so companies must design and implement effective internal control to prevent tax avoidance activities in violation of tax regulations. Originality/value-In contrast to previous studies, this study measures the effectiveness of internal control using the index of internal control practice disclosure and considers internal and external factors that can affect the effectiveness of internal control to prevent tax avoidance.
Determinant Factors of Tax Avoidance in Companies in KOMPAS100
Russian Journal of Agricultural and Socio-Economic Sciences, 2020
This research studies factors that can influence tax avoidance. These factors are leverage, company size, profitability, sales growth and the proportion of independent directors. The data used were obtained from the financial statements of manufacturing companies obtained in Kompas100 on the Indonesia Stock Exchange in the 2015-2018 period. The sample selection method used in this study is the purposive sampling method and the analysis technique used is multiple linear regression that contains the normality test, the classic assumption test and the hypothesis test. Total samples in the study were 8 companies. The results showed that only an increase in sales could affect tax avoidance, other factors that did not affect tax avoidance. Simultaneously these factors influence tax avoidance with a level of adjusted R squared 0.9188. KEY WORDS Leverage, firm size, profitability, sales growth, independet commissioners, tax avoidance. One of the biggest sources of income the country receives is the Prasetya tax (Sugitha and Supadhmi, 2013). Tax is a burden for a company, while for the government tax is a source of income. This will lead to differences in interests, from the government (fiscal authorities) will want continuous tax revenue while from companies will want minimum tax payments, so that will have an impact on corporate financial reporting and tax reporting (Kurniasih and Sari, 2013). The existence of differences in interests will lead to noncompliance by company management (taxpayers) which will result in companies avoiding tax (tax avoidance). According to Xynas (Dewinta and Setiawan, 2016), tax avoidance is an effort to reduce tax debt that is legal (lawful). Tax avoidance done by companies is to reduce taxes, but still comply with applicable tax regulations. Tax avoidance actions by companies such as deferring taxes that have not been regulated in tax regulations and take advantage of exceptions and deductions allowed in tax regulations (Dewinta and Setiawan, 2016). Uppal (Dewinta and Setiawan, 2016) states that cases of tax avoidance have occurred in developing countries, especially in Indonesia, this is done by not reporting taxes or reporting but reported not according to the actual circumstances of the income that can be imposed tax.