The Impact of External Control on Tax Avoidance

Tarmidi, DT Deden; Sari, Pns Pratiwi Nila; Sormin, FS Feber

doi:10.36346/sarjhss.2020.v02i04.015

Cited by 3 publications

(6 citation statements)

References 2 publications

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“…The result of this research indicates that the higher audit quality, the lower tax avoidance practice. This finding is in line with the previous studies from Septariani et al (2022), Kusnadi & Pandoyo (2022), Tarmidi et al (2020) and Mira & Purnamasari (2020) who stated that audit quality has a negative effect on tax avoidance. However, this result is in contrast with the agency theory that says there is a conflict between an agent and a principal.…”

Section: Results and Analysissupporting

confidence: 93%

“…The scope of auditor's works is to analyze and detect whether the financial statements made by the companies are in accordance with the financial accounting standards, free from the frauds and errors, and to examine whether the company's taxation is in line with the tax regulations. Tarmidi et al (2020) explained in their research that tax avoidance practice will become lower when the audit quality increases. If the company is detected to manipulate its earnings in order to pay minimize tax expenses or do the manipulation in its taxations, this can affect the audit opinion.…”

Section: Results and Analysismentioning

confidence: 99%

“…Does the company apply the risk management? Ratio Audit Quality (Tarmidi et al, 2020) Dummy variable by giving 1 if the company uses auditors from Big Four (Deloitte, Ernst & Young, KPMG, PricewaterhouseCoopers), while 0 if the company does not use auditors from Big Four Nominal Source: Previous studies (2023) Tax avoidance which is measured by current effective tax rate shows an average of 0.033 meaning that the higher current effective tax rate ratio, the higher payment of taxes from companies and vice versa. This percentage shows that the property and real estate companies as the sample of this research have not fulfilled the tax payments based on the regulations.…”

Section: Variablementioning

confidence: 99%

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Internal Control, Audit Quality, and Tax Avoidance: Evidence from Property and Real Estates

Fransisco Pandapotan,

Fitria Puspitasari,

Alfina Maharani

2023

NEJESH

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Even though taxpayers are given a trust to calculate, pay, and report their taxations to the government under self-assessment system, the practice of tax avoidance is still high. Comparing to tax evasion, tax avoidance is a practice that is legally done by management in order to pay minimum taxes. However, this is in contrast with the government that wants maximum payment of taxes from taxpayers. This research is conducted to see the factors affecting tax avoidance. Those determinants are internal control and audit quality. The population of this research is property and real estate companies which are listed in Indonesia Stock Exchange period 2020 and 2021 with a purposive sampling technique, so that there are 48 samples used. According to the results of multiple linear regression by SPSS 22, the findings of this research are internal control and audit quality have negative and significant effects on tax avoidance

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Section: Results and Analysissupporting

confidence: 93%

Section: Results and Analysismentioning

confidence: 99%

Section: Variablementioning

confidence: 99%

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Internal Control, Audit Quality, and Tax Avoidance: Evidence from Property and Real Estates

Fransisco Pandapotan,

Fitria Puspitasari,

Alfina Maharani

2023

NEJESH

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“…Thus, the first hypothesis that states that the independent board of commissioners variable has a significant positive effect on Tax Avoidance is not accepted (rejected). The results of this study are in line with research conducted by (Tarmidi et al, 2020) and (Sunarto et al, 2021) which stated that the Independent Board of Commissioners had no significant effect on Tax Avoidance. 2.…”

Section: : Heteroskedasticity Test Resultssupporting

confidence: 91%

“…(Waluyo, 2017) in his research explained that the proportion of the board of commissioners negatively affects tax avoidance. Meanwhile, according to research (Tarmidi et al, 2020) explained that the board of commissioners has no effect on tax avoidance. H1 : The Board of Commissioners has a positive effect on Tax Avoidance.…”

Section: Conceptual Framework 1 Effect Of Proportion Of Independent B...mentioning

confidence: 99%

The Effect of Good Corporate Governance, Profitability, Capital Intensity, and Leverage on Tax Avoidance During the Covid-19 Pandemic

2022

EJBM

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This study aims to test and analyze the influence of good corporate governance proxied by indicators of independent commissioners (KI), institutional ownership (INST), Profitability (ROA), Capital Intensity (CI), and Leverage (DER) on Tax Avoidance during the Covid-19 pandemic. The dependent variable of this study is Tax Avoidance measured using ETR. This type of research is quantitative by using secondary data on annual financial statements. The population in the study amounted to 53 enterprises. Sampling using purposive sampling technique. Data analysis in this study uses quantitative analysis. The object of this study is a manufacturing company in the consumer goods industry sector listed on the Indonesia Stock Exchange in 2020-2021. Data analysis was carried out by classical assumption testing and hypothesis testing with multiple regression methods using the help of SPSS 25 software. The purpose of conducting this research is based on increasing competition from each company which requires companies to compete in improving achievements in the company. What distinguishes the study from the previous study is that this study uses data during the pandemic in 2020-2021. Where during the pandemic it has an influence on the Indonesian economic sector. There are several limitations experienced by researchers during the research process, namely in the data tabulation process and during the data processing process. Suggestions for similar research are recommended to test the Variable Tax Avoidance, with CETR (Cash Effective Tax Rate). The goal is to show the difference in results between the measurement of ETR (Effective Tax Rate) and the measurement of CETR (Cash Effective Tax Rate) and needs to add other variables that can allow it to provide results that are more influential on Tax Avoidance actions during a pandemic, for example Corporate Social Responsibility.

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Good Corporate Governance Effectiveness Mechanism, Special Relationship Transactions, and Leverage on Tax Aggressiveness

Santoso,

Utami

2023

JOSR

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This study examines how effective good corporate governance, control of related party transactions, and leverage are in reducing tax aggressiveness. The research methodology involves cross-sectional and time-series analysis of manufacturing companies listed on the IDX from 2017-2021. Through purposive sampling, 200 observational samples were collected and tested using E-views 12, which produced a random effect model as the best regression model. The findings indicate that good corporate governance with institutional ownership proxies, audit committee activities, and the proportion of independent commissioners did not significantly reduce tax aggressiveness. Leverage with debt-equity ratio proxies also did not demonstrate a significant effect. However, related party transactions had a significant effect in increasing management opportunities to carry out tax aggressiveness. If good corporate governance implementation is not maximized and there is unfairness in related party transactions, it may indicate aggressive tax avoidance.

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The Impact of External Control on Tax Avoidance

Cited by 3 publications

References 2 publications

Internal Control, Audit Quality, and Tax Avoidance: Evidence from Property and Real Estates

Internal Control, Audit Quality, and Tax Avoidance: Evidence from Property and Real Estates

The Effect of Good Corporate Governance, Profitability, Capital Intensity, and Leverage on Tax Avoidance During the Covid-19 Pandemic

Good Corporate Governance Effectiveness Mechanism, Special Relationship Transactions, and Leverage on Tax Aggressiveness

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