Pengaruh Transfer Pricing, Koneksi Politik dan Likuiditas Terhadap Agresivitas Pajak (Survey Terhadap Perusahaan Pertambangan yang Terdaftar di BEI Tahun 2016-2019)

Tax aggressiveness is a tax avoidance that is carried out excessively by a business entity which leads to tax evasion. This will have an impact on reducing state revenue from taxes. There are many factors that trigger aggressive tax avoidance. This research is intended to examine the effect of transfer pricing, political connection and liquidity on tax aggressiveness both partially and simultaneously. The population in this study are mining industry entities listed in the Indonesian Stock Exchange for the year of 2016-2019. The sample selection is determined by purposive sampling method. Samples obtained as many as 8 companies for 4 years with a total of 32 samples. Analysis of data uses multiple regression. The result findings indicate that in partially there is no influence of transfer pricing and liquidity on tax aggressiveness, while political connection affects tax aggressiveness. Furthermore, in simultaneously transfer pricing, political connection and liquidity affect tax aggressiveness. Keywords : Transfer Pricing, Political Connection, Liquidity, and Tax Aggressiveness

Effect of Corporate Social Responsibility on Tax Avoidance in China

Corporate social responsibility (CSR) has aroused heated discussion in recent years. The public generally believe that the enterprises with good CSR performance will not be involved in aggressive tax avoidance issues. However, as several famous socially responsible technology companies were found to be involved in aggressive tax avoidance, the association between those two variables has been doubted. This paper analyzes the effect of CSR on tax avoidance with the evidence of Chinese listed companies from 2016 to 2020. The finding is that good CSR performance leads to an increase in effective tax rate. In other words, the higher the CSR report score, the higher tax payment and the lower tendency in tax avoidance.

Corporate social responsibility and tax avoidance: the case of French companies

Purpose The purpose of this paper is to shed light on the effect of tax avoidance on corporate social responsibility performance. It also investigates whether audit quality affects tax avoidance practices by socially responsible performance. Design/methodology/approach Based on a sample of French non-financial companies over the period 2005 to 2016, this paper uses panel data regressions. The authors apply generalized least square panel regression to overcome autocorrelation and heteroscedasticity problems. For further robustness, this paper runs instrumental variable regressions using the three-stage instrument variable method (three-stage least square). Findings The results show that firms with high CSR scores are more likely to engage in aggressive tax avoidance. The findings also show that firms audited by high-quality auditors are more likely to get involved in CSR for hedging against the potential consequences of aggressive tax avoidance practices. Research limitations/implications The findings are consistent with risk management theory, which suggests that firm’s hedge against any reputational risks that might arise from avoiding taxes by engaging more in CSR. Practical implications Results have implications for policymakers in that CSR firms audited by high-quality auditors may engage in CSR to overcome any negative reactions that could be caused as a result of tax avoidance. Thus, they need to be cautious about managers’ opportunistic behavior and enhance monitoring to enforce social compliance and to be tax compliant. Originality/value This paper extends the existing literature by examining the effect of audit quality on the relationship between CSR performance and corporate tax avoidance. Audit quality is deemed to be an important governance feature that is likely to constraint managerial opportunistic behaviors. Audit quality, along with CSR performance, are associated with a higher level of tax avoidance.

Impact of Company Characteristics on Aggressive Tax Avoidance in Nigerian Listed Insurance Companies

Tax avoidance has been identified as one of the tools companies used legally to pay less to government as corporation taxes. This attributed to low revenue target from taxes, thus, holding the continent back by starving the government of the revenue it needs for development. It is against this background, this study examined company characteristics and aggressive tax avoidance in Nigerian listed insurance companies. It assessed the impact of firm size, profitability, leverage and firm age on aggressive tax avoidance of listed insurance companies in Nigeria. The study adopted ex-post facto research design, and data were drawn from the audited annual reports of twenty (20) random sample listed insurance companies between 2010 and 2018. The model of the study was estimated using a two-step system GMM panel model estimator. The results of the study revealed that firm size (coeff of 0.628) and Leverage ( with coeff of 0.549 ) have a positive and significant (p-value < 1% level of significance) impact on aggressive tax avoidance, while firm’ Profitability (coeff of -0.843 ) and Age (with coeff of -0.056 ) have a negative and significant. The study concluded that company characteristics influences aggressive tax avoidance of insurance companies in Nigeria. Specifically, firm’ size and leverage have a positive impact on aggressive tax avoidance in Nigerian listed insurance companies while firm’ profitability and Age have a negative effect on aggressive tax avoidance. Thus, the study recommends among others that firm sixe should be well formulated in accordance with regulating bodies like the Corporate Affairs Commission and National Deposit Insurance Cooperation.

Social Trust, Market Competition, and Tax Avoidance: Evidence from Contemporary China

Firms pay their fair share of taxes because they want to be perceived as good corporate citizens. However, managers might engage in tax-avoiding activities if such activities are value-maximizing. Using firms in China, this study focuses on the relation between social trust and corporate practice of tax avoidance for the period 2012 to 2016. It investigates whether firms with headquarters in societies with higher level of social trust are less likely to engage in tax-avoiding activities. It also investigates whether this negative relation is more pronounced for firms in industries that are less competitive. Results show that firms located in provinces with higher social trust level engage less in tax-avoiding activities, and the negative relation is more pronounced for firms in industries that are less competitive. Since corporate tax avoidance leads to significant loss of tax revenues, tax authorities in China should engage the services of forensic accountants to identify those corporations that practice aggressive tax avoidance. Furthermore, China needs to provide more forensic accounting training for practicing accountants and auditors. Educational institutions need to offer more forensic accounting courses in order to fill the gap between forensic accounting practices and education.

Financial-tax reporting conformity, tax avoidance and corporate social responsibility

Purpose This study aims to investigate the effect of financial-tax reporting conformity jurisdictions on the association between corporate social responsibility (CSR) and aggressive tax avoidance. Design/methodology/approach Using a sample comprising firms domiciled in Europe for the period 2008–2016, this study uses regression analysis to test the impact of financial-tax reporting conformity jurisdictions on the association between CSR and aggressive tax avoidance. Findings The empirical results show that there is a positive association between CSR and tax avoidance, and firms headquartered in low financial-tax reporting conformity jurisdictions are more likely to engage in CSR to hedge against the potential negative consequences of aggressive tax-avoidance practices as compared to firms domiciled in countries with high level of financial-tax reporting conformity. Practical implications This study confirms Sikka’s (2010, 2013) view of “organised hypocrisy” act committed by firms to cover their socially irresponsible activities of aggressive tax avoidance by engaging in CSR. Results have implication for various regulatory bodies and investors in that the type of financial-tax conformity does impact the link between CSR and tax avoidance, and based on that, CSR firms may engage in CSR to overcome any negative reactions that could be caused as a result of tax avoidance. Originality/value To the best of the author’s knowledge, this study is the first to investigate the impact of financial-tax reporting conformity jurisdictions on the association between CSR and aggressive tax avoidance. This study also contributes to the literature in that, it uses an alternative data set which offers a more objective assessment of CSR measure and covers multiple countries.

The Impact of Financial Information Comparability on Aggressive Tax Avoidance with Respect to the Information Environment

The overall tax avoidance perspective suggests that managers who seek opportunities to avoid paying taxes are pursuing financial abuse by creating a lack of transparency in the financial reporting environment. It seems that many companies are involved in tax avoidance. For this reason, it is crucial to determine the factors influencing the rate of tax avoidance. In this study, it is assumed that, in weak information environments, there is much incentive to avoid paying taxes. Thus, in this research, the effect of financial information comparability on aggressive tax avoidance with respect to the information environment has been investigated. To this end, 88 companies were examined during the period from 2011 to 2016. The required financial information was extracted by referring to the financial statements using Rahavard Novin software; summarized, classified and calculated in Excel software; and finally, analyzed through EViews software. By using the combined data and taking advantage of the generalized least squares regression test, it was established that the impact of financial statement comparability on aggressive tax avoidance in companies with a weaker information environment was more significant at a 90% confidence level. On the other hand, in a situation where there is a weak information environment, the ability to compare financial statements plays a significant role in reducing tax avoidance. Thus, it can reduce companies’ involvement in avoiding daring taxes, especially in a weak information environment. Furthermore, no reliable evidence was found concerning the effectiveness of financial information comparability in aggressive tax avoidance at a 95% confidence level.

Aggressive Tax Avoidance Determinant Factors of Cg Rankings 100 Public Companies by Indonesian Institute for Corporate Directorship

This research aims to obtain empirical evidence of whether there is influence family ownership, foreign ownership, corporate governance, permanent different and temporary different of aggressive tax avoidance. Research data are secondary data form of financial statements information 100 CG rankings of public companies by Indonesian Institute for Corporate Directorship. period 2013 – 2016. The results of this study concluded that foreign, family ownership, and permanent different negatively influence toward, aggressive tax avoidance, but corporate governance and temporary different no influence toward aggressive tax avoidance. The results of this research at showed from Sig value of foreign ownership 0.014 less than 0.05, family ownership 0.22 less than 0.05, permanent different 0.60 less than 0.10. But sig value of corporate governance 0.405 more than 0.05 and temporary different 0.289 more than 0.05.