Tax Aggressiveness Seen From Company Characteristics and Corporate Social Responsibility

Abstract

<pre>This study aims to analyze the effect of company characteristics and Corporate Social Responsibility on tax aggressiveness. Dependent variable used in this research was tax aggressiveness as measured by effective tax rate. The independent variables in this study were company characteristics consisting firm size, leverage, and capital intensity. This study also used Corporate Social Responsibility as independent variable. The sample was 41 companies with the research period for 5 years (2011-2015) selected by using purposive sampling method. The data analysis in this study used multiple linear regression to obtain a comprehensive picture of the effect of corporate characteristics and Corporate Social Responsibility on Tax Aggressiveness using SPSS version 21 for Windows. The result shows that company size and capital intensity significantly affect the tax aggressiveness. However, two other variables (leverage and Corporate Social Responsibility) that allegedly affect tax aggressiveness are not proven to affect tax aggressiveness.</pre>

Will Problems Arise When Banks are Exempted from Thin Capitalization Regulation?

“…Bank size and profitability had a significant and negative effect on ETR. This finding also confirmed result found by Ngadiman & Puspitasari (2014); Harjito et al (2017) that profitability and bank size had significant impact on tendency of conducting tax avoidance. The larger the banks and the better the profitability of the banks, the smaller the ETR will be, which means that the possibility of tax avoidance by the banks was greater.…”

“…Although banks were allowed flexibility to operate at DER exceeding four to one (4:1), the banks sample could not execute tax avoidance aggressively although they have higher DER as MFD-169 stated. This result was also supported by the previous researches Kurniasih and Sari (2013), Ngadiman & Puspitasari (2014), and Harjito et al (2017) that found DER did not have any impact on tax avoidance because the firms could not maximize the benefit from maximization of using debts. This result was contrast with the agency theory explained by Jensen & Meckling (1976) because the conflict of interest between company and the government did not arise significantly since the tax paid by the companies is above 25% on average.…”

“…Ngadiman and Puspitasari (2014) employed CETR (cash effective tax rate) as dependent variable and size, leverage, and intensity as independent variables. Moreover, Harjito et al (2017) also found that leverage had no significant effect on tax avoidance because the firms could not maximize the benefit from maximization of using debts. Harjito et al (2017) used a regression model with ETR as dependent variable and size, leverage, capital intensity, and corporate social responsibility as independent variables.…”

“…Moreover, Harjito et al (2017) also found that leverage had no significant effect on tax avoidance because the firms could not maximize the benefit from maximization of using debts. Harjito et al (2017) used a regression model with ETR as dependent variable and size, leverage, capital intensity, and corporate social responsibility as independent variables. The difference between this research from the previous studies was the author tested a new Decree released by the government (the Minister of Finance Decree Number 169/ PMK.010/2015 (MFD-169) starting from tax year 2016), by using banks sample listed on Indonesia Stock Exchange, and use ETR as dependent variable, while leverage, banks size, profitability, and stock price to book value as independent variables.…”

Pengaruh Gender Diversity Dewan, Ukuran Dewan Komisaris, Komisaris Independen, Komite Audit dan Konsentrasi Kepemilikan terhadap Agresivitas Pajak

“…Manajemen berperan penting dalam memilih strategi perusahaan khususnya untuk memperbanyak kekayaan perusahaan. Manajemen cenderung melakukan agresivitas pajak dalam usahanya untuk mengurangi beban pajak yang perlu dibayarkan (Harjito, Sari, & Yulianto, 2017).…”