THE EFFECT OF TRANSFER PRICING, CAPITAL INTENSITY AND FOREIGN ACTIVITY ON TAX AVOIDANCE
Tax is one of the main sources of state revenue. However, the realization of tax revenue does not always reach the expected target. There are several factors that become obstacles in tax revenue, one of which is Tax Avoidance. Tax avoidance is a strategy and technique carried out legally and safely for taxpayers because it does not conflict with tax provisions. This study aims to determine the effect of transfer pricing, capital intensity, and foreign activity on tax avoidance in energy sector companies in the oil, gas & coal sub-sector which are listed on the Indonesia Stock Exchange for the period 2017-2021 simultaneously and partially. The sample selection technique used purposive sampling and obtained 10 companies with observations over 5 years, so that 50 samples were observed. The analysis technique used in this research is panel data regression analysis using Eviews 12 software. The results of this study indicate that transfer pricing, capital intensity and foreign activity simultaneously influence tax avoidance. Partially obtained the results that transfer pricing and foreign activity have no significant effect on tax avoidance. While capital intensity has a negative effect on tax avoidance.
capital intensity, foreign activity, tax avoidance, transfer pricing