The Impact of Profitability, Leverage, and Firm Size on Tax Avoidance

  • Gusti Ayu Putu Wulan Rahmasari Faculty of Economics and Business, Universitas Mahasaraswati Denpasar
  • Ni Luh Nyoman Sherina Devi Faculty of Economics and Business, Universitas Mahasaraswati Denpasar
  • Putu Ayu Anggya Agustina Faculty of Economics and Business, Universitas Mahasaraswati Denpasar

Abstract

Tax avoidance is the manipulation of tax affairs which is still within the framework of taxation regulations. Tax avoidance can occur in the sound of the provisions or written in the law and is in the soul of the
law but contrary to the soul of the law. This study aims to examine the
impact of profitability, leverage and firm size on tax avoidance, which is measured using the effective tax rate for companies listed on the Indonesia Stock Exchange. The population in this study are all manufacturing companies listed on the Indonesia Stock Exchange (IDX) during the 20162018 period. The method of determining the sample in this study using purposive sampling method and obtained 74 manufacturing companies. The analysis technique in this study uses multiple regression analysis techniques. The results of the profitability test have a positive impact on tax avoidance. Meanwhile, leverage and firm size have no impact on tax avoidance

Published
2020-11-30