Proceedings of the 2nd Borobudur International Symposium on Humanities and Social Sciences, BIS-HSS 2020, 18 November 2020, Magelang, Central Java, Indonesia

Research Article

Tax Avoidance Practices: Is it Only Affected by Financial Performance?

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  • @INPROCEEDINGS{10.4108/eai.18-11-2020.2311734,
        author={Carliana  Irmaslian and Veni Soraya  Dewi and Faqiatul Mariya  Waharini},
        title={Tax Avoidance Practices: Is it Only Affected by Financial Performance?},
        proceedings={Proceedings of the 2nd Borobudur International Symposium on Humanities and Social Sciences, BIS-HSS 2020, 18 November 2020, Magelang, Central Java, Indonesia},
        publisher={EAI},
        proceedings_a={BIS-HSS},
        year={2021},
        month={9},
        keywords={profitabilty capital intensity inventory intensity thin capitalization tax avoidance},
        doi={10.4108/eai.18-11-2020.2311734}
    }
    
  • Carliana Irmaslian
    Veni Soraya Dewi
    Faqiatul Mariya Waharini
    Year: 2021
    Tax Avoidance Practices: Is it Only Affected by Financial Performance?
    BIS-HSS
    EAI
    DOI: 10.4108/eai.18-11-2020.2311734
Carliana Irmaslian1, Veni Soraya Dewi1,*, Faqiatul Mariya Waharini2
  • 1: Faculty of Economics and Business, Universitas Muhammadiyah Magelang
  • 2: Faculty of Islamic Economics and Business, IAIN Salatiga
*Contact email: venisorayadewi@ummgl.ac.id

Abstract

Tax avoidance is an effort to reduce the tax that is done legally and securely for taxpayers because it does not conflict with the taxation provisions. The study aims to test empirically about the influence of Profitability, Capital Intensity, Inventory Intensity, and Thin Capitalization against tax avoidance. The research methods used are quantitative methods. The population in this research is all manufacturing companies listed on the Indonesia Stock Exchange (IDX) period 2015-2018. Data retrieval as a sample in this study uses purposive sampling. The Total number of companies used in the sample is 43 manufacturing companies. Data was obtained from the financial statements of 43 manufacturing companies listed on the Indonesia Stock Exchange from 2015 to 2018. The data analysis methods in this study used multiple linear regression and classical assumption tests including descriptive statistical trials, test normality, multicholinerity tests, autocorrelation tests and heteroskedastisity tests. The hypothesis testing was conducted using a coefficient of determination (R2) test, F test, and T test. The results showed that profitability and Capital Intensity have a negative impact on the company's tax evasion. Meanwhile, Inventory Intensity, and Thin Capitalization have no effect on the company tax avoidance.