Political Connections and Tax Aggressiveness: The Role of Gender Diversity as a Moderating Variable

Abstract

<p><em>Aggressive tax management actions lead to a low tax ratio in Indonesia. The purpose of this study was to determine the effect of political connections on tax aggressiveness and to determine the moderation of gender diversity on the effect of political connections on tax aggressiveness. This research is a type of quantitative research using moderated regression analysis using STATA software. The dependent variable of this study is tax aggressiveness, the independent variable is political connections and the moderating variable is gender diversity. The sample of this research is the mining sector companies listed on the IDX during the 2015-2019 period. Secondary data is obtained based on the annual financial statements that are on the IDX. The findings show that political connections have a positive effect on tax aggressiveness and gender diversity cannot moderate the positive effect of political connections on tax aggressiveness. This research has implications for the government in making regulations related to taxation and input to the government to pay attention to political connections as a gap in aggressive tax management. This research also contributes to companies in giving consideration to avoiding tax aggressiveness because it can damage the company's reputation, as well as providing input to companies to pay attention to the existence of political connections and gender diversity.</em><em></em></p>

Pengaruh Koneksi Politik dan Keragaman Gender terhadap Agresivitas Pajak

“…Keberadaan wanita di jajaran dewan dinilai memiliki sikap kehati-hatian yang tinggi, teliti dan cenderung menghindari resiko dibandingkan dengan pria. Selain itu, wanita mempunyai standar etika dan moral yang lebih tinggi, dapat menggutarakan sikap pemikiran independen yang lebih baik, dan memfasilitasi keputusan yang lebih tepat yang meningkatkan tingkat transparansi di tingkat dewan, dan meningkatkan tingkat kepercayaan pemegang saham (Satiti et al, 2021).…”

Hubungan Koneksi Politik dan Tata Kelola Terhadap Agresivitas Pajak di Indonesia

“…Berbeda dari penelitian yang dilakukan oleh (Satiti et al, 2021), koneksi politik berpengaruh negatif pada agresivitas pajak. Penelitian ini memberi anjuan kepada pemerintah dalam membuat regulasi yang berkaitan dengan perpajakan dan memberikan perhatian yang lebih terhadap koneksi politik agar dapat menghindari terjadinya manajemen pajak yang agresif.…”

Does Capital Intensity Moderate The Effect Of Financial Distress And Operational Performance Tax Avoidance In Regional-Owned Enterprises In Water Supply?

“…Other studies show that political connections can be a tool to reduce tax avoidance (Chaney et al, 2011;Hijriani et al, 2017;Jian et al, 2012;Manihuruk & Novita, 2023;Nurrahmi & Rahayu, 2020;Pranoto & Widagdo, 2016;Satiti et al, 2021). The company can benefit from government ownership, but the company must also be professional with its image as a profit-oriented company.…”