A Comparative Look at Regulation of Corporate Tax Avoidance

Brown, Karen B.

doi:10.1007/978-94-007-2342-9

Cited by 11 publications

(4 citation statements)

References 5 publications

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“…By the same token, Darussalam (2017) interpret tax avoidance as a transaction scheme that aims to minimize the tax burden by exploiting loopholes in a country's tax provisions. Brown (2012) states that tax avoidance is an arrangement of transactions to obtain profits, benefits, or tax reductions in a way that is not desired by the tax law.…”

Section: Tax Avoidancementioning

confidence: 99%

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How Should Indonesia Design the Statutory General Anti-Avoidance Rule?

Chandrasari

2023

JBPPK

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Penelitian ini bertujuan untuk mengeksplorasi perumusan ketentuan Statutory GAAR dalam upaya penanganan praktik penghindaran pajak di Indonesia. Penelitian ini menggunakan pendekatan kualitatif melalui studi literatur dan wawancara mendalam kepada regulator, praktisi, dan akademisi terkait perumusan ketentuan Statutory GAAR yang ideal untuk diterapkan di Indonesia. Saat ini Indonesia sudah memiliki ketentuan anti-penghindaran pajak seperti SAAR dan ketentuan Principal Purpose Test dalam beberapa P3B antara Indonesia dengan negara mitra. Ketentuan yang sudah ada tersebut belum mampu untuk mengatasi kasus penghindaran pajak secara komprehensif, sehingga memiliki Statutory GAAR sangat penting bagi Indonesia dalam memberikan kepastian hukum. Selain itu, kriteria penerapan yang ideal mencakup pengujian atas dasar transaksi, gabungan transaksi, dan arrangement; penggunaan main purpose test; GAAR diterapkan sebagai upaya terakhir; pembentukan GAAR Panel; pemberian kewenangan pada otoritas pajak untuk menentukan atau membatalkan transaksi berdasarkan cakupan GAAR; penetapan beban pembuktian yang lebih berat pada otoritas pajak; dan perlunya pengaturan threshold. This study aims to explore the formulation of Statutory GAAR provisions in an effort to address tax avoidance practices in Indonesia. This research uses a qualitative approach through literature studies and in-depth interviews with regulators, practitioners, and academics regarding the formulation of the ideal Statutory GAAR provisions to be applied in Indonesia. Currently, Indonesia already has anti-avoidance rules such as SAAR and Principal Purpose Test provision in several tax treaties between Indonesia and partner countries. The existing provisions have not been able to comprehensively address cases of tax avoidance, so having a Statutory GAAR is very important for Indonesia in providing legal certainty. In addition, the ideal application criteria include tests on a transaction, combination of transactions, and arrangement basis; the use of main purpose test; GAAR as a provision of the last resort; the establishment of the GAAR Panel; a mandate for authority to determine or cancel transactions based on GAAR coverage; stipulating a heavier burden of proof on the tax authorities; and the need for setting a threshold.

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Section: Tax Avoidancementioning

confidence: 99%

“…The substance over form doctrine is one of the most well-known doctrines in Indonesia, but its application in practice is not very commonly used except as an additional argument for a basis for correction in audits, such as in determining beneficial owners, hidden dividends and so on (Brown, 2012).…”

Section: Substance Over Form Doctrinementioning

confidence: 99%

How Should Indonesia Design the Statutory General Anti-Avoidance Rule?

Chandrasari

2023

JBPPK

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“…Basically, companies attempt to minimize their tax payments by way of tax avoidance to obtain profits, benefits, or tax deductions (Brown, 2012) Agency theory states that agency problems may arise, both between shareholders and managers, and between controlling shareholders and minority shareholders. From an agency perspective, there is a relationship between tax avoidance and firm value.…”

Section: Hypothesis Developmentmentioning

confidence: 99%

The Impact of Tax Avoidance, Sustainability Report Disclosure, and Earnings Management on Firm Value in the Digital Era With Corporate Governance as a Moderating Variables

Andayani

2021

International, J. , Contemporary, account.

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<p>This paper aims to determine whether tax avoidance, sustainability reporting, and earnings management affected firm value. Samples were collected from 80 companies listed on the Indonesian Stock Exchange (BEI)between 2015 and 2019. This research is an explanatory study that employs a quantitative approach and purposive sampling as the sampling technique, using the Absolute Difference Value Method to examine the moderating variable’effect, and SPSS 23 to analyze the data. The finding indicate that while tax avoidance has no negative effect on firm value and Sustainability Report has no positive effect on firm value, earnings management have negative effects on firm value. Corporate Governance did not weaken the effect of tax avoidance on firm value, corporate governance did not strengthen the relationship between sustainability reports and firm value and Corporate Governance weakens the negative effect of earnings management on firm value. This paper contributes to three different strands of research:determinants of tax avoidance in Indonesia for government literature, evaluation, improve, improvement, and performance for companies;for investors, as it is wordthwhile to consider additional factors in order to aid in making an informed assessment of company’s value in this era of technology.</p>

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“…One of the tax avoidance practices that affect firm value is to report the minimum profit so that the amount of tax is small (Brown, 2012). In agency theory, it is possible if agency problems arise, such as problems between principle and agent, as well as controlling principal with minority .…”

Section: Hypothesis Tax Avoidance and Firm Valuementioning

confidence: 99%

The effect of tax avoidance, sustainbility report, corporate governance on firm value: Leverage as moderating (Empirical Study On Registered Manufacturing Companies On the Indonesia Stock Exchange 2014-2019)

Andayani

Yanti

2021

TSSJ

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Disclosure about the factors that influence firm value is the aim of this study. Tax avoidance variables, sustainability reports, corporate governance practices and leverage are thought to influence firm value. Samples were selected based on certain criteria. Therefore, data obtained from the Indonesia Stock Exchange as many as forty companies for six years (2014 to 2019). The results reveal that tax avoidance, sustainability reporting, corporate governance practices affects firm value in a negative direction. Meanwhile, leverage affects firm value in a positive direction. The effect of the sustainability report on firm value is proven not to be strengthened by the leverage variable as a moderating variable, but it does strengthen the effect of tax avoidance and corporate governance on firm value.. Originality / Value - This paper contributes to three different series of studies: the literature on government as a determinant of tax avoidance in Indonesia. For companies, evaluate, improve, improve performance. For investors, to assist in making wise judgments about the value of the firm, it is worth considering other factors and for the academy as the theoretical library used. For further research with institutional ownership variable, financial crisis as a moderating variable.

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A Comparative Look at Regulation of Corporate Tax Avoidance

Cited by 11 publications

References 5 publications

How Should Indonesia Design the Statutory General Anti-Avoidance Rule?

How Should Indonesia Design the Statutory General Anti-Avoidance Rule?

The Impact of Tax Avoidance, Sustainability Report Disclosure, and Earnings Management on Firm Value in the Digital Era With Corporate Governance as a Moderating Variables

The effect of tax avoidance, sustainbility report, corporate governance on firm value: Leverage as moderating (Empirical Study On Registered Manufacturing Companies On the Indonesia Stock Exchange 2014-2019)

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