TAX AVOIDANCE AND ITS DETERMINANTS IN MANUFACTURING COMPANIES IN INDONESIA
The realization of tax revenues with different tax targets results in problems in tax revenues. This is and is caused by the existence of tax avoidance behavior carried out by companies in Indonesia. The primary objective of this research is to determine whether profitability and sales growth influence tax avoidance, with audit quality as a moderating variable. This study utilizes financial statement data from manufacturing companies listed on the Indonesia Stock Exchange for the period 2016-2020 with 210 observations. The sample selection technique employed is purposive sampling. Data analysis methods include multiple linear regression analysis and Moderated Regression Analysis (MRA). The research findings indicate that profitability has a positive impact on tax avoidance, and sales growth also positively influences tax avoidance. Audit quality moderates the relationship between profitability and tax avoidance, as well as between sales growth and tax avoidance. This study explores several factors that affect tax avoidance, such as profitability and sales growth. Based on the research model used, this study introduces audit quality as a moderating variable in the relationship between profitability and sales growth with tax avoidance. Furthermore, this research specifically focuses on manufacturing companies in Indonesia, where tax avoidance practices are likely to occur. Implications for the government include the potential loss of tax revenue due to tax avoidance by companies. The government needs to tighten tax regulations more effectively to curb tax avoidance practices. Additionally, the government should enhance monitoring and law enforcement regarding tax avoidance practices in manufacturing companies in Indonesia.
Tax Avoidance, Profitability, Sales Growth, Audit Quality.