Impact of Good Corporate Governance (GCG) to Tax Avoidance in Indonesia

Abstract

This study has collected several previous researches on the topic of tax avoidance and concluded that the audit committee has a positive impact on tax avoidance so that the larger the number of audit committees, the more likely it is to reduce tax avoidance in Indonesia. Furthermore, executive compensation, executive character, firm size, proportion of institutional ownership and board of directors commissioners and audit quality are not proven to affect the reduction of tax avoidance in Indonesia but have an effect in other countries. Companies that take tax avoidance actions are actually not just a coincidence, because all actions and decisions in tax avoidance are policies decided by the company itself. Exclusively, the parties who make a company decision are the tax director and the company's tax consultant. However, the main director or president director who has the duty to lead the company directly or indirectly has influence in everything related to company decisions, especially the decision to take tax avoidance actions.