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International Journal of Academic Research in Accounting, Finance and Management Sciences

Open Access Journal

ISSN: 2225-8329

Tax Avoidance: Impact of Financial and Non-Financial Factors

Deden Tarmidi, Pratiwi Nila Sari, Riaty Handayani

http://dx.doi.org/10.6007/IJARAFMS/v10-i2/7238

Open access

This study is a follow-up study of research on tax avoidance that has been conducted by researchers and also as a confirmatory study of the results of existing studies with the same topic, namely tax avoidance. The fact that tax revenue in Indonesia has not reached the target so far and the level of tax compliance that is less than optimal in Indonesia encourages researchers to analyze the factors that influence it. The fact is that even though taxes are used for the benefit of the general public and are managed by the state, for companies as corporate taxpayers that taxes are a burden that can reduce profits and management performance, so companies generally avoid tax to minimize the tax burden. As an organization, company management policies are influenced by many factors, both internal and external factors, both on the basis of financial and non-financial conditions, including policies in tax avoidance. Adopting previous studies, some of the financial factors analyzed in this study are Company Profitability and Size while the non-financial factors analyzed are Independent Commissioners and Institutional Ownership. The results found that profitability and company size had a negative effect on Tax Avoidance while independent commissioners had a positive effect. In the sensitivity test it is known that the level of influence of financial factors and non-financial factors has the same impact on tax avoidance actions.

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To cite this article: Tarmidi, D., Sari, P. N., Handayani, R. (2020). Tax Avoidance: Impact of Financial and Non-Financial Factors, International Journal of Academic Research in Accounting, Finance and Management Sciences 10 (2): 1-8.