“…Transfer pricing is a significant form of tax avoidance that is carried out by diverting profits from countries with higher tax rates to countries with lower tax rates (Richardson et al, 2013;Sari, 2020;Muhammadi et al, 2016;Makni et al, 2020;Amidu et al, 2019;Arham et al, 2020;Wahyudi et al, 2021;Falbo & Firmansyah, 2018;Irawan et al, 2021). Supported by OECD country-by-country reporting statistics in Baerentzen (2020), one of the main findings of the report is the discrepancy between the jurisdiction of profit reporting and the jurisdiction of economic activities, such as employment, assets, and sales (Rahman & Utami, 2021;Devi & Suryarini, 2020;Taylor et al, 2018;Sari & Irawan, 2021;Utami & Irawan, 2022).…”