Determinants of Tax Avoidance on Consumption Business Sector in Indonesia (original) (raw)
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Proceedings of the Proceedings of the 1st Workshop on Multidisciplinary and Its Applications Part 1, WMA-01 2018, 19-20 January 2018, Aceh, Indonesia, 2019
Tax evasion is to avoid taxes by exploiting loopholes contained in legal tax laws. This study aims to examine the effect of the characteristics of the company proxied by profitability, leverage, size, capital intensity, and inventory intensity against tax avoidance in manufacturing companies of food and beverage industry sector listed in Indonesia Stock Exchange period 2012-2016. The sample of this research consists of 11 manufacturing companies of food and beverage industry sector listed in BEI period 2012-2016 by using sampling method of purposive sampling. The analysis technique used in this research is multiple linear regression analysis. The result of the analysis shows that the variab characteristics of the company proxied by profitability, capital intensity, inventory intensity have a significant effect on tax avoidance, no significant effect on tax avoidance. While the variable characteristics of the company in proxies by size and leverage have no effect on tax avoidance.
Tax avoidance in the Indonesian manufacturing industry
Journal of Contemporary Accounting, 2021
This study aims to determine tax avoidance in the Indonesian manufacturing industry. The control variable is the industrial sub-sector. In this study tax avoidance is proxied as book tax differences. This study focuses on manufacturing companies listed on the Indonesia Stock Exchange (IDX) for the 2015-2018 period. Using the STATA 13 regression data panel, this study shows that capital intensity has no significant effect on tax avoidance and inventory intensity has no significant effect on tax avoidance. However, this study found that industry auditors' specialization had a positive effect on tax avoidance. This study contributes to enhancing empirical evidence of audit quality, proxied by industry auditors' specialization can provide assurance of managers' tax avoidance activities did not violate the fairness principle, thus increase tax avoidance activities.
This research aims to examine the potential factors which are considered to influence tax avoidance. Some predictor variables used in this research include profitability, leverage, sales growth and executive character. The population of this research were companies in the LQ45 category listed on the Indonesia Stock Exchange during the period of 2016-2019, and the sampling method used was the purposive sampling method. The research method used is quantitative method. This research uses data in the form of financial statements of LQ45 companies listed on the Indonesia Stock Exchange during the period of 2016-2019. Data was analyzed using panel data regression analysis. Based on the results of panel data regression analysis with a significance level of 5% using the EViews9 software, it can be concluded that partially, profitability has an effect on tax avoidance, while leverage, sales growth and executive character partially have no effect on tax avoidance. Simultaneously, profitability, leverage, sales growth and executive character have no effect on 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.
Level of Tax Avoidance Intersector: Case Study of Companies Listed on the Indonesia Stock Exchange
International Journal of Social Science and Human Research
Indonesia's Economic growth and investment increase in 2021 need to be maintained by the Government by mitigating tax avoidance activities. This study aims to examine differences in the level of tax avoidance between business sectors. The sample in this study uses companies listed on the Indonesia Stock Exchange in 2021, consisting of 514 companies. Kruskal Wallis analysis and the Wilcoxon rank-sum (MannWhitney) test were used to testing the hypotheses. The results show that the mining sector differs significantly from all other sectors. This result implies that government policy changes in mitigating tax avoidance activities for the mining sector can be applied specifically to that sector. Meanwhile, the Government must be more careful in making policy changes for other sectors because it will affect several sectors simultaneously.
Proceedings of the Proceedings of the First Annual Conference of Economics, Business, and Social Science, ACEBISS 2019, 26 - 30 March, Jakarta, Indonesia, 2020
This research investigates the relationship between tax avoidance with executive characteristics, independent commissioner and profitability at manufacture firm in Indonesia. Tax avoidance was difference measure by using corporate tax to return ratio (CTTOR). This ratio present for tax avoidance level, in which higher CTTOR means the lower tax avoidance level. This study was using 20 manufacture firms in Indonesia. There were 80 annual reports data. This research used multiple regressions linear with SPSS 23 for tool analysis. The result shows the executive characteristics has negative impact but not significant to tax avoidance. Independence commissioner and profitability have positive significant effect to tax avoidance. Besides, size and total asset turn over and leverage has relationship with tax avoidance.
Determinant of Tax Avoidance on Manufacturing Companies
International Journal of Approximate Reasoning, 2014
Abstract: Many cases of tax avoidance are one factor not achieve the target of tax revenue by the government. Some studies have been done to find the causes of the companies have tax avoidance, but the result is unclear. This study aimed to examine determinants tax avoidance on manufacturing companies listed in Indonesia Stock Exchange (BEI)2010-2013. Return on Assets (ROA), leverage, company size, compensation tax losses, and institutional ownership used as independent variables and tax avoidance as the dependent variable. The sampling method used purposive sampling. Based on the selected sample from 128 population, obtained 47 samples with four years of observation. The amount of data 188. Data analysis used multiple regression analysis. This study used ETR (Effective Tax Rate) as Proxy to the calculation of tax avoidance. The results of this study showed that the independent variables are ROA, leverage, and company size significantly influence the partial tax avoidance, but the v...
Factors Influencing Tax Avoidance
The government tends to collect the tax on every potential tax objects optimally, while the tax payers tends to look for alternatives in the tax regulation on how to legally minimizing the tax payment. This contradictory condition has motivated the researcher to check whether certain factors influencing tax avoidance. Tax payers will conduct tax planning in order to have tax avoidance. This paper aims to examine the influence of independent commissioner, institutional ownership, managerial ownership, return on assets, firm size, leverage, sales growth, capital intensity ratio and inventory intensity ratio on tax avoidance. The data is all manufacturing companies listed in the Indonesia Stock Exchange for 2014-2016. The sample are selected using purposive sampling method. Only 61 out of 134 listed manufacturing companies meet the sampling criteria, which resulting 183 data available for testing. The multiple regression analysis is used to test the influence of each independent variables on tax avoidance. The result indicates that institutional ownership and return on asset have significant influence on tax avoidance, however, independent commissioner, managerial ownership, firm size, leverage, sales growth, capital intensity ratio and inventory intensity ratio do not have significant influence on tax avoidance.
The Effect of Corporate Diversification, Customer Concentration on Tax Avoidance in Indonesia
Jurnal Akuntansi dan Bisnis
This study aims to examine the effect of corporate diversification, customer concentration on tax avoidance in Indonesian Non-Financial Companies. Companies diversify because of the private benefits managers receive from diversifying. Also, companies may choose to have only a few customers to create a close relationship with those customers. Meanwhile, tax avoidance is a reduction in corporate tax liability, which is conducted by the company legally. This study employs a quantitative method using linear regression analysis and uses panel data of companies listed under the Indonesian Non-Financial Companies on IDX from 2014 to 2017. Based on purposive sampling was conducted, the total number of observations is 483 firm-year. The results of this study suggest that corporate diversification and customer concentration are positively associated with tax avoidance.
PROOF
This research was conducted to analyse, observe and test the effect of Corporate Risk, Sales Growth, and Profitability on Tax Avoidance practices. The object of this research is the food and beverage sub-sector companies listed on the IDX during the 2018-2020 period. The sample selection used the purposive sampling method with a total of 143 samples that met the criteria. The analytical method used is multiple linear regression analysis with the help of the SPSS statistical program. From this test, the results show that (1) corporate risk, profitability and corporate size have no effect on tax avoidance, (2) sales growth have a negative effect on tax avoidance, (3) leverage have a positive effect on tax avoidance.