Track: Undergradute Research Competition

Abstract

Tax Avoidance is a form of tax resistance actively practised by taxpayers to legally reduce the tax burden without violating the law by using accounting methods and techniques that take advantage of weaknesses (grey areas) in tax
laws and regulations. Tax avoidance can occur because of the weakness of the tax collection system carried out by self-assessment. This research aims to analyze and examine the effect of Leverage, Profitability, Company Size, and
Political Connection on Tax Avoidance at consumer goods sector companies listed on the Indonesia Stock Exchange (IDX) for 2016-2020. The population in this study are consumer goods sector companies listed on the Indonesia Stock Exchange (IDX) for the 2016-2020 period. The sampling technique used was purposive sampling and obtained 21 companies in the consumer goods sector with an observation period of five years, so 105 samples were obtained in this study. The data analysis method in this study is panel data analysis with Eviews 12. The results of this study indicate that Leverage, Profitability, Company Size, and Political Connection simultaneously affect Tax Avoidance.
Leverage, Company Size, and Political Connection affect Tax Avoidance, and Profitability partially does not affect Tax Avoidance.
Keywords
Leverage, Profitability, Company Suze, Political Connection, Tax Avoidance