Consequences of Tax Avoidance

Abstract

Tax avoidance is part of the tax management practices, carried out by companies in the context of tax savings. The practice of tax avoidance is not done without risk. This study aims to examine the impact of tax avoidance practices on the corporat risk, firm value, and cost of debt. The analysis use literature review method by reviewing the results of previous research in 2019-2022. The synthesis of previous research results shows that tax avoidance increases company risk. Meanwhile, tax avoidance tend to be neutral to the cost of debt.