Related Party Transactions and Tax Avoidance: Study on Mining Company in Indonesia

Rezeki, Dwi Sri; Widarjo, Wahyu; Sudaryono, Eko Arief; Syafiqurrahman, Muhammad

doi:10.20961/jab.v21i2.689

Cited by 2 publications

(2 citation statements)

References 0 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Another form of tax avoidance practice can be transfer pricing, and according to Irawan & Ulinnuha (2022), transfer pricing is defined as a form of tax avoidance by shifting profits from countries with high tax rates to those with low tax rates. The existence of transactions between related parties also increases the potential for transfer pricing (Rezeki et al, 2021). This opinion is also supported by Irawan & Ulinnuha (2022), who state that the more "multinational" or the more a company operates in various countries, the higher the transfer pricing or transfer pricing aggressiveness will be.…”

Section: Tax Avoidancementioning

confidence: 90%

Analysis Of The Implementation And Implications Of OECD/G20 Pillar One On The Taxation System In Indonesia

Fajar,

Irawan

2024

Educoretax

View full text Add to dashboard Cite

One of the efforts taken by member countries of OECD/G20 Inclusive Framework for BEPS is to capture tax revenue from the digital economy is called Pillar One: Unified Approach specifically Amount A. This research aims to obtain information on the progress and obstacles on the implementation of Pillar One in Indonesia, including the impact generated by Pillar One as well as understand policy alternatives that could potentially become replacement for Pillar One. The method used in this research is qualitative with a case study approach. The results obtained in this study show that currently Pillar One cannot be implemented because it encounters various obstacles and is related to other jurisdictions. If Pillar One has been implemented, the implications are additional tax revenue potential but relatively low, adjustment on policy, tax administration systems, IT systems and human resources. Pillar One, which has the potential to be canceled, raises alternative policies that can be implemented by Indonesia such as Digital service tax, Article 12B UN Model Convention and new PE criteria namely Significant Economic Presence. The government must reconsider the cost and benefit on implementation of Pillar One. The government must also prepare and compile alternative policies and supporting aspects such as IT system development due to the potential failure of the Pillar One implementation.

show abstract

Section: Tax Avoidancementioning

confidence: 90%

Analysis Of The Implementation And Implications Of OECD/G20 Pillar One On The Taxation System In Indonesia

Fajar,

Irawan

2024

Educoretax

View full text Add to dashboard Cite

show abstract

“…Companies will tend to minimize costs in receivables transactions and sales in transactions carried out by related companies so that they will generate profits for the company. In agency theory, which supports related party transactions, a conflict of economic interests between the controlled company and the controller can also occur, detrimental to the company or often known as a conflict-of-interest transaction (Rezeki et al, 2021) Companies with high debt levels will also experience high-interest expenses, which can reduce company profits, resulting in low yields. Because company profits are down, companies will also be charged low taxes, and this can be said to tend to avoid high taxes.…”

Section: Related Party Transaction Debtmentioning

confidence: 99%

Effect of Related Party Transaction, Profitability, Leverage, and Capital Intensity on Tax Avoidance with Firm Size as a Moderating Variable in Food and Beverage Sub-Sector Manufacturing Companies Listed on the Indonesia Stock Exchange 2018-2022

Br Sembiring,

Br Bukit,

Lumbanraja

2024

Int J Res Rev

View full text Add to dashboard Cite

This research aims to determine and test the influence of related party transaction receivables, related party transaction debt, profitability, leverage, and capital intensity on tax avoidance in food and beverage sub-sector manufacturing companies listed on the Indonesia Stock Exchange for the 2018-2022 period and to test whether Firm size can moderate the relationship between the independent variable and the dependent variable. The population in this study was 26 companies. The sampling method uses purposive sampling, and the number of observation samples is 130 companies. This type of research is quantitative descriptive by testing classical assumptions and Multiple Regression Analysis (MRA) testing, which uses two regression equations. The analysis technique used is with SPSS software tools. This research shows that profitability, leverage, and capital intensity positively and significantly affect tax avoidance. Meanwhile, related party transactions receivables and associated party transactions accounts payable do not affect tax avoidance. The variable firm size can moderate the relationship between the influence of related party transactions on debt, profitability, leverage, and capital intensity on tax avoidance. The firm size variable cannot moderate the relationship between the influence of related party transaction receivables on tax avoidance. Keywords: tax avoidance, firm size, related party transactions, leverage, profitability, and capital intensity

show abstract

Related Party Transactions and Tax Avoidance: Study on Mining Company in Indonesia

Cited by 2 publications

References 0 publications

Analysis Of The Implementation And Implications Of OECD/G20 Pillar One On The Taxation System In Indonesia

Analysis Of The Implementation And Implications Of OECD/G20 Pillar One On The Taxation System In Indonesia

Effect of Related Party Transaction, Profitability, Leverage, and Capital Intensity on Tax Avoidance with Firm Size as a Moderating Variable in Food and Beverage Sub-Sector Manufacturing Companies Listed on the Indonesia Stock Exchange 2018-2022

Contact Info

Product

Resources

About