Track: Business Management

Abstract

Tax avoidance is an attempt to avoid tax by taking advantage of the gray area contained in the legislation in order to minimize the tax burden payable. However, the existence of tax avoidance in companies will harm state revenues because the highest state revenues come from the tax sector. This study aims to determine the effect of the intensity of fixed assets, institutional ownership, and the audit committee on tax avoidance in manufacturing companies listed on the Indonesia Stock Exchange (IDX) in 2016-2020. The analytical method used is descriptive statistical testing and panel data regression analysis using Eviews 10 software. The sampling technique of this study was purposive sampling and obtained 29 companies with an observation period of 5 (five) years. However, in this study there were 5 outlier, so the resulting data were 120 data. The results of this study indicate that all variables are declared free from the classical assumption test. Panel data regression test results with the common effect model obtained f test results of 0.000215 which is smaller than the significance value of 0.05 or < 0.05.ownership institutional, and the audit committee have a significant simultaneous effect on tax avoidance in manufacturing companies listed on the Indonesia Stock Exchange (IDX) in 2016-2020. Partial testing shows that the results of the intensity of fixed assets effect positive tax avoidance. Meanwhile, institutional ownership and audit committee have no effect on tax avoidance in manufacturing companies listed on the Indonesia Stock Exchange (IDX) in 2016-2020.