Research Article
Tax Avoidance Practices: Is it Only Affected by Financial Performance?
@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
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.