Influence of Tunneling Incentive, Risk Management and Company Characteristics on Tax Avoidance with Corporate Social Responsibility Disclosure Asa Moderating Variable In Mining Companies Listed on IDX

Abstract

In Indonesia, there are tax evasion cases involving taxpayers paying taxes that must be paid in various ways. This gap phenomenon occurs in the case of a coal mining company that has been proven to have evaded tax. In addition, there are many more cases that show corporate tax evasion and have caused many state losses that impact the country's economic growth because of their efforts to reduce costs which are a source of income for the state. This study aims to provide empirical evidence of the effect of applying tunneling incentives, risk management, and firm characteristics using the leverage ratio and firm size, as independent variables, on tax avoidance as the dependent variable, with the use of Corporate Social Responsibility (CSR) as the independent variable. Variable moderator. Determination of the sample using the purposive sampling technique obtained a sample of 8 companies with 40 observational data. The analysis technique and hypothesis testing were carried out by panel data regression analysis through Eviews-11. The results showed that tunneling incentive and firm size had a significant positive effect on tax avoidance. Risk management and leverage do not affect tax avoidance. Corporate social responsibility can only moderate the effect of tunneling incentives on tax avoidance and firm size on tax avoidance but cannot moderate the effect of risk management and leverage.

Corporate Tax Policy: Impact Tunnelling Incentive, Debt Covenant, And Transfer Pricing

“…Likewise (Rifan, 2019;Tang, 2016) explain that tunnelling incentives are used by management in corporate tax policy. The higher value of the tunnelling incentive indicates the high influence of majority shareholders on management, so that with this power it causes a lot of input and even encouragement in every management policy, including tax policy, with the main objective of getting more profit for the majority shareholder (Rohmani and Amin, 2022;Suripto and Novitaria, 2021;Ullah et al, 2021).…”

The Influence of Corporate Social Responsibility, Tunneling Incentive, and Capital Intensity Against Tax Avoidance

“…Tunneling Incentive dilakukan semata-mata untuk meningkatkan profit dari pemegang saham mayoritas (Suripto & Novitaria, 2021). Terdapat perbedaan pendapat oleh penelitian terdahulu, beberapa penelitian mengatakan bahwa terdapat pengaruh positif signifikan yang diakibatkan oleh tunneling incentive terhadap tax avoidance (Lestari & Solikhah, 2019; R. J.…”

“…Terdapat perbedaan pendapat oleh penelitian terdahulu, beberapa penelitian mengatakan bahwa terdapat pengaruh positif signifikan yang diakibatkan oleh tunneling incentive terhadap tax avoidance (Lestari & Solikhah, 2019; R. J. Putra & Rizkillah, 2022;Rifan, 2019;Rohmani & Amin, 2022;Suripto & Novitaria, 2021). Sedangkan disisi lain terdapat peneliti yang menjabarkan bahwa berpengaruh negatif antara tunneling incentive terhadap tax avoidance (Rahmawati & Mulyani, 2020).…”

The Effect of Tunneling Incentives, Thin Capitalization, Financial Distress, and Earnings Management on Tax Aggressiveness

“…Tunneling incentive merujuk pada tindakan pemegang saham pengendali yang melakukan pengalihan aset dan keuntungan perusahaan untuk keuntungan pribadi. Dalam proses ini, pemegang saham non pengendali juga harus menanggung beban yang timbul [10]. Awalnya, istilah tunneling digunakan untuk menggambarkan situasi di Republik Ceko dimana pemegang saham mayoritas melakukan pengambilalihan dengan cara yang mirip dengan memindahkan aset melalui terowongan bawah tanah.…”

“…Beberapa penelitian yang membahas tunneling incentive diantaranya, penelitian [12] mengutarakan bahwa praktik tunneling incentive tidak berdampak pada tingkat penghindaran pajak yang agresif. Sedangkan menurut [10] mengutarakan bahwa tindakan penghindaran pajak secara agresif dipengaruhi oleh praktik tunneling incentive yang dilakukan oleh perusahaan.…”