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FACTORS INFLUENCING TAX AVOIDANCE IN INDONESIA
Humanities & Social Sciences Reviews,
Vol. 8 No. 1 (2020): January
Abstract
Purpose of the study: The purpose of this study is to prove the influence of profitability, size, leverage, and capital intensity either partially or simultaneously on tax avoidance in food and beverage companies listed on Indonesia Stock Exchange (BEI) during 2014-2016 period.
Methodology: The sampling method used purposive sampling with 195 data processed. Data were analyzed with multiple linear regression by using the SPSS program.
Main Findings: The results proved that, partially, profitability did not influence tax avoidance, size has influenced tax avoidance, leverage gave no influence on tax avoidance, and capital intensity provided no effect on tax avoidance.
Applications of this study: The population of this study was food and beverage companies listed on the Indonesia Stock Exchange. The total population taken was 19 companies. The sampling employed purposive sampling.
Novelty/Originality of this study: The results proved that, partially, profitability did not influence tax avoidance, size has influenced tax avoidance, leverage gave no influence on tax avoidance, and capital intensity provided no effect on tax avoidance. While simultaneously, profitability, size, leverage, and capital intensity affected the tax avoidance in food and beverage companies listed on BEI.
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- Chiou, Y.-C., Hsieh, Y.-C., & Lin, W. (2012). Determinants of effective tax rates for firms listed on China's stock markets: panel models with two-sided censors. The Business & Management Review, 3(1), 306.
- Dharmawan, I. G., & Sukartha, I. M. (2014). Pengaruh Corporate Governance, Leverage, Return On Assets, Dan Ukuran Perusahaan Pada Penghindaran Pajak (The Effect of Corporate Governance, Leverage, Return on Assets, and Company Size on Tax Avoidance). E-Journal Akuntansi Universitas Udayana.
- Dyreng, S., Hanlon, M., & Maydew, E. (2007). Long-run corporate tax avoidance. Accounting Review, 83, 61-82. https://doi.org/10.2308/accr.2008.83.1.61 DOI: https://doi.org/10.2308/accr.2008.83.1.61
- Ernayani, R., Oktiviana, S., & Robiyanto, R. (2017). The Effect of Return on Investment, Cash Ratio, and Debt to Total Assets Towards Dividend Payout Ratio (A Study Towards Manufacturing Companies Listed in Indonesia Stock Exchange). Advanced Science Letters, 23(8), 7169-7199. doi: https://doi.org/10.1166/asl.2017.9328 DOI: https://doi.org/10.1166/asl.2017.9328
- Ernayani, R., & Robiyanto, R. (2016). The effect of the cash flows, gross profit and company size on Indonesian stock returns (a study on the chemical and basic industry companies during the periods of 2009-2014) International Journal of Applied Business and Economic Research, 14(3).
- Ernayani, R., Robiyanto, R., & Sudjinan, S. (2017). Factors influencing profit distribution management of sharia commercial banks in Indonesia. Journal of Economics, Business & Accountancy Ventura, 20(2). https://doi.org/10.14414/jebav.v20i2.1055 DOI: https://doi.org/10.14414/jebav.v20i2.1055
- Frank, M. M., Lynch, L. J., & Rego, S. O. (2008). Tax Reporting Aggressiveness and Its Relation to Aggressive Financial Reporting. Social Science Research Network, 84(2), 467-496. https://doi.org/10.2308/accr.2009.84.2.467 DOI: https://doi.org/10.2308/accr.2009.84.2.467
- Fullerton. (1983). Which Effective Tax Rate Working Paper No. 1123. https://doi.org/10.3386/w1123 DOI: https://doi.org/10.3386/w1123
- Gupta, S., & Newberry, K. (1997). Determinants of the Variability in Corporate Effective Tax Rate: Evidence From longitudinal data. Journal of Accounting and Public Policy, 16, 1-34. https://doi.org/10.1016/S0278-4254(96)00055-5 DOI: https://doi.org/10.1016/S0278-4254(96)00055-5
- Handriani, E. (2016). Role of Investment Opportunity Based on Industrial Growth (Kibig) To Increase Company Value (Empirical Study on Manufacturing Company Go Public In Indonesian Capital Market). Dissertation, Universitas Diponegoro, Semarang, Indonesia.
- Handriani, E., & Robiyanto, R. (2018). Investment Opportunity and Industrial Growth in Indonesia. International Journal of Business and Society, 19(2).
- Hanum, H. R., & Zulaikha. (2013). Pengaruh Karakteristik Corporate Governance Terhadap Effective Tax Rate (The Effect of Corporate Governance Characteristic on Effective Tax Rate). Journal of Accounting Diponegoro, 2(2), 1-10.
- Hery. (2016). Analisis Laporan Keuangan (Analysis of Financial Statements). Jakarta: Grasindo.
- Kasmir. (2014). Analisis Laporan Keuangan (Analysis of Financial Statements) (1th ed.). Jakarta: Raja Grafindo Persada.
- Kuriah, H. L., & Asyik, N. F. (2016). Pengaruh Karakteristik Perusahaan Dan Corporate Social Responsibility Terhadap Agresivitas Pajak (The Effect of Corporate Characteristic and Corporate Social Responsibility on Tax Aggressiveness). Jurnal Akuntansi dan Riset Akuntansi, 5(3). https://doi.org/10.22202/economica.2017.v5.i2.383 DOI: https://doi.org/10.22202/economica.2017.v5.i2.383
- Kurniasih, T., & Sari, M. M. (2013). Pengaruh Return On Assets, Leverage, Corporate Governance, Ukuran Perusahaan, dan Kompensasi Rugi Fiskal Pada Tax Avoidance (The Effect of Return on Assets, Leverage, Corporate Governance, Company Size, and Fiscal Loss Compensation). E –Jurnal Akuntansi Universitas Udayana, 18(1).
- MacCrimmon, K. R., Wehrung, D., & Stanbury, W. T. (1988). Taking risks. Simon and Schuster.
- Machfoedz, M. (1994). Financial Ratio Analysis and The Prediction of. Earnings Changes in Indonesia. Gadjah Mada International Journal of Business.
- Mardiasmo. (2016). Perpajakan (Taxation). Yogyakarta Indonesia: Andi Offset.
- Noor, R. M. (2010). Corporate Tax Planning: A Study on Corporate Effective Tax Rates of Malaysian Listed Companies. International Journal of Trade, Economics and Finance, 1(2), 189-193. https://doi.org/10.7763/IJTEF.2010.V1.34 DOI: https://doi.org/10.7763/IJTEF.2010.V1.34
- Nugroho, A. S. (2006). Analisis Faktor-Faktor yang Mempengaruhi Struktur Modal Perusahaan Properti yang Go Public di Bursa Efek Jakarta untuk Periode Tahun 1994-2004. Universitas Diponegoro, Semarang, Indonesia.
- Pohan, C. A. (2015). Manajemen Perpajakan (Management of Taxation). Jakarta, Indonesia PT. Gramedia Pustaka Utama.
- Putra, I. G., & Merkusiwati, N. K. (2016). Pengaruh Komisaris Independen, Leverage, Size Dan Capital Intensity Ratio Pada Tax Avoidance (The Effect of Independent Commissioner, Leverage, Size, and Capital Intensity Ratio on Tax Avoidance). E –Jurnal Akuntansi Universitas Udayana.
- Richardson, G., & Lanis, R. (2007). Determinants of Variability in Corporate Effective Tax Rates and Tax Reform: Evidence from Australia. Journal of Accounting and Public Policy, 26, 689-704. https://doi.org/10.1016/j.jaccpubpol.2007.10.003 DOI: https://doi.org/10.1016/j.jaccpubpol.2007.10.003
- Robiyanto, R. (2018). The Effect of Gold Price Changes, USD/IDR Exchange Rate Changes and Bank Indonesia (BI) Rate on Jakarta Composite Index (JCI)'s Return and Jakarta Islamic Index (JII)'s Return. Jurnal Manajemen dan Kewirausahaan, 20(1), 45-52. https://doi.org/10.9744/jmk.20.1.45-52 DOI: https://doi.org/10.9744/jmk.20.1.45-52
- Robiyanto, R., & Puryandani, S. (2015). The Javanese lunar calendar’s effect on Indonesian stock returns. Gadjah Mada International Journal of Business, 17(2), 125-137. https://doi.org/10.22146/gamaijb.6906 DOI: https://doi.org/10.22146/gamaijb.6906
- Robiyanto, R., Wahyudi, S., & Pangestuti, I. R. D. (2017). The volatility–variability hypotheses testing and hedging effectiveness of precious metals for the Indonesian and Malaysian capital markets. Gadjah Mada International Journal of Business, 19(2), 167-192. https://doi.org/10.22146/gamaijb.26260 DOI: https://doi.org/10.22146/gamaijb.26260
- Siregar, R., & Widyawati, D. . (2016). Pengaruh Karakteristik Perusahaan Terhadap Penghindaran Pajak Pada Perusahaan Manufaktur di BEI (The Effect of Corporate Characteristic on Tax Avoidance in Manufacturing Companies on BEI). Jurnal Ilmu dan Riset Akuntansi, 5(2).
- Soemitro, R. (2012). Perpajakan Teori dan Teknis Pemungutan (Taxation: Theory and Collection Technique). Bandung, Indonesia: Graha Ilmu.
- Tandean, V. A. (2015). Pengaruh Good Corporate Governance dan Ukuran Perusahaan terhadap Tax Avoidance. https://doi.org/10.24843/JIAB.2016.v11.i01.p07 DOI: https://doi.org/10.24843/JIAB.2016.v11.i01.p07
- Taylor, G., & Richardson, G. (2013). The determinants of thinly capitalized tax avoidance structures: Evidence from Australian firms. Journal of International Accounting, Auditing, and Taxation, 22(1), 12-25. https://doi.org/10.1016/j.intaccaudtax.2013.02.005 DOI: https://doi.org/10.1016/j.intaccaudtax.2013.02.005
- Triyono, D., & Robiyanto, R. (2017). The effect of foreign stock indexes and Indonesia’s macroeconomics variables toward Jakarta Composite Stock Price Index (JCI) Advanced Science Letters, 23(8), 7211-7214. doi: https://doi.org/10.1166/asl.2017.9332 DOI: https://doi.org/10.1166/asl.2017.9332
- Van Horne, J., & Wachowicz, J. M. (2008). Fundamentals of Financial Management (13th ed.): Prentice Hall.
References
Chiou, Y.-C., Hsieh, Y.-C., & Lin, W. (2012). Determinants of effective tax rates for firms listed on China's stock markets: panel models with two-sided censors. The Business & Management Review, 3(1), 306.
Dharmawan, I. G., & Sukartha, I. M. (2014). Pengaruh Corporate Governance, Leverage, Return On Assets, Dan Ukuran Perusahaan Pada Penghindaran Pajak (The Effect of Corporate Governance, Leverage, Return on Assets, and Company Size on Tax Avoidance). E-Journal Akuntansi Universitas Udayana.
Dyreng, S., Hanlon, M., & Maydew, E. (2007). Long-run corporate tax avoidance. Accounting Review, 83, 61-82. https://doi.org/10.2308/accr.2008.83.1.61 DOI: https://doi.org/10.2308/accr.2008.83.1.61
Ernayani, R., Oktiviana, S., & Robiyanto, R. (2017). The Effect of Return on Investment, Cash Ratio, and Debt to Total Assets Towards Dividend Payout Ratio (A Study Towards Manufacturing Companies Listed in Indonesia Stock Exchange). Advanced Science Letters, 23(8), 7169-7199. doi: https://doi.org/10.1166/asl.2017.9328 DOI: https://doi.org/10.1166/asl.2017.9328
Ernayani, R., & Robiyanto, R. (2016). The effect of the cash flows, gross profit and company size on Indonesian stock returns (a study on the chemical and basic industry companies during the periods of 2009-2014) International Journal of Applied Business and Economic Research, 14(3).
Ernayani, R., Robiyanto, R., & Sudjinan, S. (2017). Factors influencing profit distribution management of sharia commercial banks in Indonesia. Journal of Economics, Business & Accountancy Ventura, 20(2). https://doi.org/10.14414/jebav.v20i2.1055 DOI: https://doi.org/10.14414/jebav.v20i2.1055
Frank, M. M., Lynch, L. J., & Rego, S. O. (2008). Tax Reporting Aggressiveness and Its Relation to Aggressive Financial Reporting. Social Science Research Network, 84(2), 467-496. https://doi.org/10.2308/accr.2009.84.2.467 DOI: https://doi.org/10.2308/accr.2009.84.2.467
Fullerton. (1983). Which Effective Tax Rate Working Paper No. 1123. https://doi.org/10.3386/w1123 DOI: https://doi.org/10.3386/w1123
Gupta, S., & Newberry, K. (1997). Determinants of the Variability in Corporate Effective Tax Rate: Evidence From longitudinal data. Journal of Accounting and Public Policy, 16, 1-34. https://doi.org/10.1016/S0278-4254(96)00055-5 DOI: https://doi.org/10.1016/S0278-4254(96)00055-5
Handriani, E. (2016). Role of Investment Opportunity Based on Industrial Growth (Kibig) To Increase Company Value (Empirical Study on Manufacturing Company Go Public In Indonesian Capital Market). Dissertation, Universitas Diponegoro, Semarang, Indonesia.
Handriani, E., & Robiyanto, R. (2018). Investment Opportunity and Industrial Growth in Indonesia. International Journal of Business and Society, 19(2).
Hanum, H. R., & Zulaikha. (2013). Pengaruh Karakteristik Corporate Governance Terhadap Effective Tax Rate (The Effect of Corporate Governance Characteristic on Effective Tax Rate). Journal of Accounting Diponegoro, 2(2), 1-10.
Hery. (2016). Analisis Laporan Keuangan (Analysis of Financial Statements). Jakarta: Grasindo.
Kasmir. (2014). Analisis Laporan Keuangan (Analysis of Financial Statements) (1th ed.). Jakarta: Raja Grafindo Persada.
Kuriah, H. L., & Asyik, N. F. (2016). Pengaruh Karakteristik Perusahaan Dan Corporate Social Responsibility Terhadap Agresivitas Pajak (The Effect of Corporate Characteristic and Corporate Social Responsibility on Tax Aggressiveness). Jurnal Akuntansi dan Riset Akuntansi, 5(3). https://doi.org/10.22202/economica.2017.v5.i2.383 DOI: https://doi.org/10.22202/economica.2017.v5.i2.383
Kurniasih, T., & Sari, M. M. (2013). Pengaruh Return On Assets, Leverage, Corporate Governance, Ukuran Perusahaan, dan Kompensasi Rugi Fiskal Pada Tax Avoidance (The Effect of Return on Assets, Leverage, Corporate Governance, Company Size, and Fiscal Loss Compensation). E –Jurnal Akuntansi Universitas Udayana, 18(1).
MacCrimmon, K. R., Wehrung, D., & Stanbury, W. T. (1988). Taking risks. Simon and Schuster.
Machfoedz, M. (1994). Financial Ratio Analysis and The Prediction of. Earnings Changes in Indonesia. Gadjah Mada International Journal of Business.
Mardiasmo. (2016). Perpajakan (Taxation). Yogyakarta Indonesia: Andi Offset.
Noor, R. M. (2010). Corporate Tax Planning: A Study on Corporate Effective Tax Rates of Malaysian Listed Companies. International Journal of Trade, Economics and Finance, 1(2), 189-193. https://doi.org/10.7763/IJTEF.2010.V1.34 DOI: https://doi.org/10.7763/IJTEF.2010.V1.34
Nugroho, A. S. (2006). Analisis Faktor-Faktor yang Mempengaruhi Struktur Modal Perusahaan Properti yang Go Public di Bursa Efek Jakarta untuk Periode Tahun 1994-2004. Universitas Diponegoro, Semarang, Indonesia.
Pohan, C. A. (2015). Manajemen Perpajakan (Management of Taxation). Jakarta, Indonesia PT. Gramedia Pustaka Utama.
Putra, I. G., & Merkusiwati, N. K. (2016). Pengaruh Komisaris Independen, Leverage, Size Dan Capital Intensity Ratio Pada Tax Avoidance (The Effect of Independent Commissioner, Leverage, Size, and Capital Intensity Ratio on Tax Avoidance). E –Jurnal Akuntansi Universitas Udayana.
Richardson, G., & Lanis, R. (2007). Determinants of Variability in Corporate Effective Tax Rates and Tax Reform: Evidence from Australia. Journal of Accounting and Public Policy, 26, 689-704. https://doi.org/10.1016/j.jaccpubpol.2007.10.003 DOI: https://doi.org/10.1016/j.jaccpubpol.2007.10.003
Robiyanto, R. (2018). The Effect of Gold Price Changes, USD/IDR Exchange Rate Changes and Bank Indonesia (BI) Rate on Jakarta Composite Index (JCI)'s Return and Jakarta Islamic Index (JII)'s Return. Jurnal Manajemen dan Kewirausahaan, 20(1), 45-52. https://doi.org/10.9744/jmk.20.1.45-52 DOI: https://doi.org/10.9744/jmk.20.1.45-52
Robiyanto, R., & Puryandani, S. (2015). The Javanese lunar calendar’s effect on Indonesian stock returns. Gadjah Mada International Journal of Business, 17(2), 125-137. https://doi.org/10.22146/gamaijb.6906 DOI: https://doi.org/10.22146/gamaijb.6906
Robiyanto, R., Wahyudi, S., & Pangestuti, I. R. D. (2017). The volatility–variability hypotheses testing and hedging effectiveness of precious metals for the Indonesian and Malaysian capital markets. Gadjah Mada International Journal of Business, 19(2), 167-192. https://doi.org/10.22146/gamaijb.26260 DOI: https://doi.org/10.22146/gamaijb.26260
Siregar, R., & Widyawati, D. . (2016). Pengaruh Karakteristik Perusahaan Terhadap Penghindaran Pajak Pada Perusahaan Manufaktur di BEI (The Effect of Corporate Characteristic on Tax Avoidance in Manufacturing Companies on BEI). Jurnal Ilmu dan Riset Akuntansi, 5(2).
Soemitro, R. (2012). Perpajakan Teori dan Teknis Pemungutan (Taxation: Theory and Collection Technique). Bandung, Indonesia: Graha Ilmu.
Tandean, V. A. (2015). Pengaruh Good Corporate Governance dan Ukuran Perusahaan terhadap Tax Avoidance. https://doi.org/10.24843/JIAB.2016.v11.i01.p07 DOI: https://doi.org/10.24843/JIAB.2016.v11.i01.p07
Taylor, G., & Richardson, G. (2013). The determinants of thinly capitalized tax avoidance structures: Evidence from Australian firms. Journal of International Accounting, Auditing, and Taxation, 22(1), 12-25. https://doi.org/10.1016/j.intaccaudtax.2013.02.005 DOI: https://doi.org/10.1016/j.intaccaudtax.2013.02.005
Triyono, D., & Robiyanto, R. (2017). The effect of foreign stock indexes and Indonesia’s macroeconomics variables toward Jakarta Composite Stock Price Index (JCI) Advanced Science Letters, 23(8), 7211-7214. doi: https://doi.org/10.1166/asl.2017.9332 DOI: https://doi.org/10.1166/asl.2017.9332
Van Horne, J., & Wachowicz, J. M. (2008). Fundamentals of Financial Management (13th ed.): Prentice Hall.