Determinant Tax Avoindance In Indonesia: The Role Of Profitability, Liquidity, And Leverage

Abstract

The study aims to test the effect of profitability, leverage, and liquidity on tax avoidance on companies listed on the Indonesia Stock Exchange. The sample in this study is companies that are members of the property, industrial, and infrastructure sectors as many as 166 companies.  Data collection techniques use financial statement documentation published on the Indonesia Stock Exchange web. Data analysis techniques using multiple linear regression methods. The results showed that profitability variables had an effect on tax avoidance. Meanwhile, leverage has no effect on tax avoidance. Liquidity negatively affects tax avoidance.  The magnitude of the influence of independent variables on dependents is 0.660. The results of this study are expected to contribute to the Directorate General of Taxes for policy making that is able to reduce tax avoidance carried out by corporate taxpayers.