The Effect of Profitability and Good Corporate Governance on Tax Avoidance
DOI:
https://doi.org/10.30651/stb.v5i1.26294Keywords:
tax avoidance, Audit Committee, Independent Board of Commissioners, Good Corporate Governance, Profitability, institusional ownershipAbstract
This study looks at how tax avoidance in real estate and property firms listed on the Indonesia Stock Exchange is impacted by profitability and good corporate governance (GCG) from 2020 to 2023. Secondary data from yearly financial reports is used in the study. 92 observations from 23 companies were obtained using a purposive sample strategy. The data was subjected to multiple linear regression analysis using SPSS 27 software. The findings indicate that tax avoidance is significantly impacted negatively by profitability, suggesting that greater profitability is linked to a lower likelihood of tax avoidance. In contrast, the audit committee used as a GCG indicators has a considerable positive association with tax avoidance. Meanwhile, the other two GCG indicators, institutional ownership and the proportion of independent commissioners, did not significantly affect on tax avoidance. These data suggest that not all aspects of GCG are effective in reducing tax avoidance. As a result, each governance mechanism's supervision functions must be strengthened in order to effectively deter tax avoidance in the property and real estate sectors.
References
Aji, B., & Haptari, V. (2022). Dampak Kebijakan Insentif PPN DTP Rumah Terhadap Profitabilitas Perusahaan Sektor Real Estate. JPI : Jurnal Pajak Indonesia , Vol.6.
Awaliah, R., Damayanti, R., & Usman Asri. (2022). Tren Penghindaran Pajak Perusahaan di Indonesia yang Terdaftar di BEI (Tahun 2016-2020) Melalui Analisis Tingkat Effective Tax Rate (ETR) Perusahaan. Akrual : Jurnal Bisnis Dan Akuntansi Kontemporer.
Dewi, S. L., & Oktaviani, R. M. (2021). Pengaruh Leverage, Capital Intensity, Komisaris Independen dan Kepemilikan Institusional Terhadap Tax Avoidance . Jurnal Studi Akuntansi Dan Keuangan.
Fadhila, N., & Andayani, S. (2022). Pengaruh Financial Distress, Profitabilitas, dan Leverage terhadap Tax Avoidance. Owner, 6(4), 3489–3500. https://doi.org/10.33395/owner.v6i4.1211
Fatimah, A. N., Nurlaela, S., & Nurlaela, P. S. (2020). Pengaruh Company Size, Profitabilitas, Leverage, Capital Intensity dan Likuiditas terhadap Tax Avoidance pada Perusahaan Makanan dan Minuman yang Terdaftar di BEI tahun 2015-2019. Jurnal Ilmiah Ekonomi Dan Bisnis, 109–120.
Fauzan, Dewi, P. M., Arsanti, & Fatchan, I. N. (2021). The Effect of Financial Distress, Good Corporate Governance, and Institutional Ownership on Tax Avoidance (Empirical Study of Manufacturing Companies in the Consumer Goods Industry Sector Listed on the Indonesia Stock Exchange for the 2016-2019 Period. Jurnal Riset Akuntansi Dan Keuangan Indonesia, 6.
Fitriningsih, D., & Wulandari, P. (2024). Pengaruh Komite Audit dan Kualitas Audit terhadap Tax Avoidance di Perusahaan Manufaktur Food and Beverage yang Terdaftar di Bursa Efek Indonesia (BEI). Jurnal Bina Bangsa Ekonomika, 17(1).
Handoyo, S., Wicaksono, A. P., & Darmest, A. (2022). Apakah Tata Kelola Perusahaan Mendukung Praktik Penghindaran Pajak di Indonesia? International Journal of Innovative Research and Scientific Studies, 184–201.
Hapsari . Annisa. (2024, April 25). Pilar II OECD dan Dampaknya bagi Perpajakan Indonesia . Direktorat Jenderal Pajak .
Hilmi, M. F., Amalia, S. N., Amry, Z., & Setiawati, S. (2022). Pengaruh Dewan Komisaris Independen, Komite Audit, Leverage dan Intensitas Modal Terhadap Penghindaran Pajak Pada Perusahaan Manufaktur Yang Terdaftar Di Bursa Efek Indonesia Tahun 2017. Owner, 6(4), 3533–3540. https://doi.org/10.33395/owner.v6i4.1178
Ismiyanti, E., & Ahalik. (2022). Pengaruh Ukuran Perusahaan, Komite Audit, Pertumbuhan Penjualan, dan Kepemilikan Asing Terhadap Penghindaran Pajak dengan Tingkat Implementasi IFRS sebagai Moderasi. Jurnal Mahasiswa Institut Teknologi Dan Bisnis, 4130–4149.
I. Wikartika, & Akbar.Fajar. (2020). Analysis of Corporate Governance Based on The Agency Theory. Nusantara Science and Technology Proceedings, 1–9. https://doi.org/10.11594/nstp.2019.0401
Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics.
Justice Network, T. (2022). The State of Tax Justice 2020: Tax Justice in the time of COVID-19.
Mailia, V., & Apollo. (2020). Pengaruh Profitabilitas, Ukuran Perusahaan dan Capital Intensity terhadap Tax Avoidance . Jurnal Manajemen Pendidikan Dan Ilmu Sosial .
Manurip, C., & Suwetja, I. G. (2022). Analisis Pemahaman Dan Persepsi Etis Dari Sisi Konsultan Pajak Tentang Penghindaran Pajak Aktif Dalam Bentuk Tax Avoidance Dan Tax Evasion (Studi Pada Konsultan Pajak Di Kota Bitung Dan Manado) . Jurnal LPPM Bidang EkoSosBudKum (Ekonomi, Sosial, Budaya, Dan Hukum), 5.
Mardjono, E. S. (2024). Gender Diversity of Executive, Internal Control, Institutional Ownership, Firm Size and Tax Avoidance: An Interactive Effects Business Strategy. Jurnal Akuntansi Universitas Jember, 22(1), 80. https://doi.org/10.19184/jauj.v22i1.47764
Merks, P. (2007). Fundamentals of International Tax Planning. IBFD.
Mohammadi, S., Saeidi, H., & Naghshbandi, N. (2021). The impact of board and audit committee characteristics on corporate social responsibility: evidence from the Iranian stock exchange. International Journal of Productivity and Performance Management, 2207–2236.
Murkana, R., & Putra, Y. (2020). Analisis Faktor Yang Mempengaruhi Praktek Penghindaran Pajak Pada Perusahaan Manufaktur Sektor Industri Barang Konsumsi Yang Terdaftar Di Bursa Efek Indonesia Tahun 2015-2017. Profita: Komunikasi Ilmiah Akuntansi Dan Perpajakan, 13, 43–57.
Mustaqiim, R. A., & Nurhidayati, N. (2020). The Effect Of Tax Examination Effectiveness On Tax Avoidance With Political Connection Moderation. Riset, 2(2), 307–325. https://doi.org/10.35212/riset.v2i2.64
Musthafa. (2017). Manajemen Keuangan. CV. Andi Offset.
Napitupulu, I. H., Situngkir, A., & Arfanni, C. (2020). Pengaruh Transfer Pricing dan Profitabilitas Terhadap Tax Avoidance. Kajian Akuntansi, 21, 126-141.
Oktaviani, R. M., Wulandari, S., Srimindarti, C., & Ma’sum, M. A. (2023). The Impact of Corporate Governance and Fiscal Loss Compensation on Tax Avoidance Policies: Indonesian Banking Sector. International Journal of Sustainable Development and Planning.
Pohan, C. A. (2013). Manajemen Perpajakan : Strategi Perencanaan Pajak & Bisnis. PT Gramedia Pustaka Utama.
Prasatya, R. E., Mulyadi, J., & Suyanto. (2020). Karakter Eksekutif, Profitabilitas, Leverage, dan Komisaris Independen Terhadap Tax Avoidance Dengan Kepemilikan Institusional Sebagai Variabel Moderasi. JRAP (Jurnal Riset Akuntansi Dan Perpajakan), 7, 153–162.
Rohyati, Y., & Suripto, S. (2021). Corporate Social Responsibility, Good Corporate Governance, and Management Compensation against Tax Avoidance. Budapest International Research and Critics Institute (BIRCI-Journal): Humanities and Social Sciences, 4(2), 2612–2625. https://doi.org/10.33258/birci.v4i2.1968
Sjahril.Rizki Firdi, Yasa. I. Nyoman Putra, & Dewi, G. A. K. R. (2020). Analisis Faktor-faktor yang Mempengaruhi Tarif Pajak Efektif pada Wajib Pajak Badan (Studi Perusahaan Real Estate & Property yang Terdaftar di Bursa Efek Indonesia Periode 2016-2018). JIMAT (Jurnal Ilmiah Mahasiswa Akuntansi) Universitas Pendidikan Ganesha.
Sofiamanan, N., Machmuddah, Z., & T.A.H, N. (2023). Profitability, Capital Intensity, and Company Size against Tax Avoidance with Leverage as an Intervening Variable. Journal of Applied Accounting and Taxation, 8, 21–29.
Sunarto, S., Widjaja, B., & Meita, R. (2020). The Effect of Corporate Governance on Tax Avoidance: The Role of Profitability as a Mediating Variable. Journal of Asian Finance, Economics, and BusinessThe Effect of Corporate Governance on Tax Avoidance: The Role of Profitability as a Mediating Variable, 8.
Swandewi, N. P., & Noviari, N. (2020). Pengaruh Financial Distressdan Konservatisme Akuntansi pada Tax Avoidance. E-Jurnal Akuntansi.
Widyastuti, S. M., Meutia, I., & Candrakanta, A. B. (2021). The Impact of Leverage, Profitability, Capital Intensity and Corporate Governance on Tax Avoidance . Integrated Journal of Business and Economics, 13–27.
Ziliwu, D. B., Surbakti, L. P., & Mashuri, A. A. S. (2021). Pengaruh Karakteristik Komite Audit terhadap Penghindaran Pajak dengan Kualitas Audit Eksternal sebagai Variabel Moderasi. Equity, 24(1), 101–122. https://doi.org/10.34209/equ.v24i1.2258
Downloads
Published
Issue
Section
License
Copyright (c) 2025 SUSTAINABLE : ACCOUNTING JOURNAL
This work is licensed under a Creative Commons Attribution 4.0 International License.
Copyright
Copyright for articles published in Sustainable: Accounting Journal.
Authors must submit copyright to the journal by signing and sending the copyright assignment form (template) via email sustainable@um-surabaya.ac.id
Authors can disseminate their articles through any media.
Licence
Every work written by the author is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
