Company Characteristics and Related to Tax Avoidance on Sharia Commercial Banks in Indonesia

Nur Fitriana Hamsyi; Nina Febriana Dosinta

doi:10.18535/ijsrm/v9i12.em3

Abstract

The sustainability of a country cannot be separated from taxes as the most dominant source of income. However, the realization of tax revenue has not shown the maximum level in meeting the set targets. One of the contributing factors is the low awareness of paying taxes. This study investigates the company characteristics of financial leverage, executive character, profitability, and its relationship with tax avoidance. Sharia commercial banks with observations of 66 banks in six years became the sample in this study. Data processing is done by software E-views. Several findings obtained from the test results prove that financial leverage (DER) positively affects tax avoidance. Meanwhile, the executive character and return on equity do not affect tax avoidance.

Keywords

Company CharacteristicsFinancial leverageExecutive characterProfitabilityTax avoidance

References

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Ariff, A, M., & Hashim, H, A. (2014). Governance and the Value Tax Avoidance. Malaysian Accounting Review, 13(2), 87–107.Google Scholar ↗
Asri, I. A. T. Y., & Suardana, K. A. (2016). Pengaruh Proporsi Komisaris Independen, Komite Audit, Preferensi Risiko Eksekutif dan Ukuran Perusahaan pada Penghindaran Pajak. E-Jurnal Akuntansi, 16(1), 72–100.Google Scholar ↗
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Chen, S., Chen, X., Shevlin, T., Chen, S., Chen, X., & Shevlin, T. (2010). Are family firms more Tax Aggressive than Non-Family Firms ? University of Texas at Austin University of Wisconsin-Madison. Research Collection School of Accountancy, 91(1), 41–61.Google Scholar ↗
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Lathif, A. A. (2009). Analisis Yuridis Pengenaan Pajak Pertambahan Nilai (PPN) dalam Pembiayaan Murabahah di Perbankan Syariah. Dialog: Jurnal Penelitian dan Kajian Keagamaan, 67, 52-68.Google Scholar ↗
Low, A. (2006). Managerial Risk-Taking Behavior and Equity-Based Compensation. The Journal of The American Taxation Association, 23(1), 1-43.Google Scholar ↗
Mahpudin, E. (2016). Pengaruh Profitabilitas terhadap Harga Saham Perusahaan Manufaktur pada Periode 2011-2015. Journal of Accounting and Finance, 1(02), 118–131.Google Scholar ↗
Mayarisa, O. (2017). Pengaruh Karakter Eksekutif, Komite Audit, Ukuran Perusahaan, Leverage, Pertumbuhan Penjualan, dan Profitabilitas terhadap Tax Avoidance. Jurnal Akuntansi Bisnis, 15(1), 23–40.Google Scholar ↗
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Nurim, Y., & Sunardi, Raharti, R. (2017). The Type I Versus Type II Agency Conflict on Earnings Management. Jurnal Dinamika Manajemen, 8(1), 44-58.Google Scholar ↗
Permata, A. D., Nurlaela, S., & Masitoh, W. (2018). Pengaruh Size, Age, Profitability, Leverage dan Sales Growth terhadap Tax Avoidance. Jurnal Akuntansi Dan Pajak, 19(1), 10–20.Google Scholar ↗
Pohan, C. A. (2016). Manajemen Perpajakan (Strategi Perencanaan Pajak dan Bisnis. (Edisi Revisi). Jakarta: PT Gramedia Jakarta.Google Scholar ↗
Prabowo, I. C. (2020). Capital Structure, Profitability, Firm Size and Corporate Tax Avoidance: Evidence from Indonesia Palm Oil Companie. Business Economic, Communication, and Social Sciences, 2(1), 97–103.Google Scholar ↗
Prihatono, I., Wijaya, I. N. A., Barus, F. F. (2019). The Influence of The Executive Characteristics and Audit Committee on Tax Avoidance. International Journal of Business, Economics and Law, 19(5), 361–369.Google Scholar ↗
Pujilestari, R., & Winedar, M. (2018). Pengaruh Karakter Eksekutif, Ukuran Perusahaan, Kualitas Audit, dan Komite Audit terhadap Tax Avoidance. Jurnal Akuntansi dan Auditing, 15(2), 204–220.Google Scholar ↗
Putranti, T. M., Jati, W., & Tambunan, M. R. U. D. (2015). Studi Penghindaran Pajak: Kegiatan Jasa Perbankan di Indonesia. Responsi Bank Indonesia.Google Scholar ↗
Rodriguez, E. F., & Arias, A. M. (2012). Do Business Characteristics Determine an Effective Tax Rate? The Chinese Economy, 45(6), 60–83.Google Scholar ↗
Saifudin, & Yunanda, D. (2016). Determinasi Return on Asset, Leverage, Ukuran Perusahaan, Kompensasi Rugi Fiskal dan Kepemilikan Institusi terhadap Penghindaran Pajak. Jurnal Penelitian Ilmu Ekonomi WIGA, 6(2).Google Scholar ↗
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[refR-1] Ahmad, N., Salman, A., & Shamsi, A, F. (2015). Impact of Financial Leverage on Firms’ Profitability : An Investigation from Cement Sector of Pakistan. Research Journal of Finance and Accounting, 6(7), 75–81.Google Scholar ↗

[refR-2] Ariff, A, M., & Hashim, H, A. (2014). Governance and the Value Tax Avoidance. Malaysian Accounting Review, 13(2), 87–107.Google Scholar ↗

[refR-3] Asri, I. A. T. Y., & Suardana, K. A. (2016). Pengaruh Proporsi Komisaris Independen, Komite Audit, Preferensi Risiko Eksekutif dan Ukuran Perusahaan pada Penghindaran Pajak. E-Jurnal Akuntansi, 16(1), 72–100.Google Scholar ↗

[refR-4] Astuti, T. P., & Aryani, Y. A. (2016). Tren Penghindaran Pajak Perusahaan Manufaktur di Indonesia yang Terdaftar di BEI Tahun 2001-2014. Jurnal Akuntansi, 20(3), 375–388. https://doi.org/10.24912/ja.v20i3.4DOI ↗Google Scholar ↗

[refR-5] Bayunanda, A., & Ompusunggu, A. P. (2018). Influence of Debt to Equity Ratio, Return on Assets and Earning Management on Tax Avoidance (Survey on Manufacturing Companies Registered in BEI). International Journal of Business, Economics and Law, 15(5), 133–142.Google Scholar ↗

[refR-6] Butje, S., & Tjondro, E. (2014). Pengaruh Karakteristik Eksekutif dan Koneksi Politik terhadap Tax Avoidance. Tax & Accounting Review, 4(1), 1–9.Google Scholar ↗

[refR-7] Chen, S., Chen, X., Shevlin, T., Chen, S., Chen, X., & Shevlin, T. (2010). Are family firms more Tax Aggressive than Non-Family Firms ? University of Texas at Austin University of Wisconsin-Madison. Research Collection School of Accountancy, 91(1), 41–61.Google Scholar ↗

[refR-8] Dharma, I. M. S., & Ardiana, P. A. (2016). Pengaruh Leverage, Intensitas Aset Tetap, Ukuran Perusahaan, dan Koneksi Politik Terhadap Tax Avoidance. E-Jurnal Akuntansi Universitas Udayana, 15, 584–613.Google Scholar ↗

[refR-9] Dyreng, S., Hanlon, M., & Maydew, E. L. (2008). Long-Run Corporate Tax Avoidance. The Accounting Review, 83(1), 61–82.Google Scholar ↗

[refR-10] Ekaputra, T., & W. (2019). Faktor-Faktor yang Mempengaruhi Penghindaran Pajak Perusahaan Properti dan Real Estate. Jurnal Paradigma Akuntansi, 1(3), 937–945.Google Scholar ↗

[refR-11] Fitriyani, W. D., & Fitriana, V. E. (2020). Does Risk Preferences Executive Influence the Relationship between Corporate Social Responsibility Disclosure and Tax Avoidance?. JAAF (Journal of Applied Accounting and Finance), 4(1), 36-48.Google Scholar ↗

[refR-12] Harventy, G. (2016). Pengaruh Tax Avoidance terhadap Nilai Perusahaan. EKOMBIS REVIEW: Jurnal Ilmiah Ekonomi dan Bisnis, 4(1), 895–906. https://doi.org/10.37676/ekombis.v4i1.156DOI ↗Google Scholar ↗

[refR-13] Hidayat, A. T., & Fitria, E. F. (2018). Pengaruh Capital Intensity, Inventory Intensity, Profitabilitas dan Leverage terhadap Agresivitas Pajak. Eksis, 13(2), 157–168.Google Scholar ↗

[refR-14] Kasmir. (2012). Analisis Laporan Keuangan (Edisi Revisi). Jakarta: Rajagrafindo Persada.Google Scholar ↗

[refR-15] Kusumadewi, N. L. G. L., & Wardhani, R (2020). The Effect of Three Types of Agency Problems on The Firm Performance: Evidence from Indonesia. International Journal Monetary Economics and Finance, 13(3), 279-286.Google Scholar ↗

[refR-16] Lathif, A. A. (2009). Analisis Yuridis Pengenaan Pajak Pertambahan Nilai (PPN) dalam Pembiayaan Murabahah di Perbankan Syariah. Dialog: Jurnal Penelitian dan Kajian Keagamaan, 67, 52-68.Google Scholar ↗

[refR-17] Low, A. (2006). Managerial Risk-Taking Behavior and Equity-Based Compensation. The Journal of The American Taxation Association, 23(1), 1-43.Google Scholar ↗

[refR-18] Mahpudin, E. (2016). Pengaruh Profitabilitas terhadap Harga Saham Perusahaan Manufaktur pada Periode 2011-2015. Journal of Accounting and Finance, 1(02), 118–131.Google Scholar ↗

[refR-19] Mayarisa, O. (2017). Pengaruh Karakter Eksekutif, Komite Audit, Ukuran Perusahaan, Leverage, Pertumbuhan Penjualan, dan Profitabilitas terhadap Tax Avoidance. Jurnal Akuntansi Bisnis, 15(1), 23–40.Google Scholar ↗

[refR-20] Meiranto, W., & Nugraha, N. B. (2015). Pengaruh Corporate Social Responsibility, Ukuran Perusahaan, Profitabilitas, Leverage dan Capital intensity terhadap Agresivitas Pajak. Diponegoro Journal of Accounting, 4(4), 1–14.Google Scholar ↗

[refR-21] Novita, N. (2016). Executives Characters, Gender and Tax Avoidance: A Study on Manufacturing Companies in Indonesia. Advances in Economics, Business and Management Research, 15, 92–95.Google Scholar ↗

[refR-22] Nurim, Y., & Sunardi, Raharti, R. (2017). The Type I Versus Type II Agency Conflict on Earnings Management. Jurnal Dinamika Manajemen, 8(1), 44-58.Google Scholar ↗

[refR-23] Permata, A. D., Nurlaela, S., & Masitoh, W. (2018). Pengaruh Size, Age, Profitability, Leverage dan Sales Growth terhadap Tax Avoidance. Jurnal Akuntansi Dan Pajak, 19(1), 10–20.Google Scholar ↗

[refR-24] Pohan, C. A. (2016). Manajemen Perpajakan (Strategi Perencanaan Pajak dan Bisnis. (Edisi Revisi). Jakarta: PT Gramedia Jakarta.Google Scholar ↗

[refR-25] Prabowo, I. C. (2020). Capital Structure, Profitability, Firm Size and Corporate Tax Avoidance: Evidence from Indonesia Palm Oil Companie. Business Economic, Communication, and Social Sciences, 2(1), 97–103.Google Scholar ↗

[refR-26] Prihatono, I., Wijaya, I. N. A., Barus, F. F. (2019). The Influence of The Executive Characteristics and Audit Committee on Tax Avoidance. International Journal of Business, Economics and Law, 19(5), 361–369.Google Scholar ↗

[refR-27] Pujilestari, R., & Winedar, M. (2018). Pengaruh Karakter Eksekutif, Ukuran Perusahaan, Kualitas Audit, dan Komite Audit terhadap Tax Avoidance. Jurnal Akuntansi dan Auditing, 15(2), 204–220.Google Scholar ↗

[refR-28] Putranti, T. M., Jati, W., & Tambunan, M. R. U. D. (2015). Studi Penghindaran Pajak: Kegiatan Jasa Perbankan di Indonesia. Responsi Bank Indonesia.Google Scholar ↗

[refR-29] Rodriguez, E. F., & Arias, A. M. (2012). Do Business Characteristics Determine an Effective Tax Rate? The Chinese Economy, 45(6), 60–83.Google Scholar ↗

[refR-30] Saifudin, & Yunanda, D. (2016). Determinasi Return on Asset, Leverage, Ukuran Perusahaan, Kompensasi Rugi Fiskal dan Kepemilikan Institusi terhadap Penghindaran Pajak. Jurnal Penelitian Ilmu Ekonomi WIGA, 6(2).Google Scholar ↗

[refR-31] Yorke, S. M., Amidu. M., & Boateng, C. A. (2016). The effects of Earning Management and Corporate Tax Avoidance on Firm Value. International Journal of Management Practice, 9(2), 112–131.Google Scholar ↗