The Association Between Related Party Transaction And Tax Avoidance In Indonesia

Abstract

<p>This study aims to examine the association between related party transaction and tax avoidance in Indonesia’ Non-Financial Companies. Related-party transactions, as its name implies, are transactions conducted by companies with its related parties. Meanwhile, tax avoidance is a reduction in corporate tax liability, which is conducted by the company legally. This study employs a quantitative method using linear regression analysis and uses panel data of companies listed under the Indonesia Non-Financial Companies on IDX from 2014 to 2017. The result of this study suggests that related party transaction is negatively associated with tax avoidance.</p>

Liquidity, Leverage, Tax Avoidance: The Moderating Role of Firm Size

“…This condition can provide an opportunity for taxpayers to minimize the tax expenses that must be paid (Chandra & Trisnawati, 2019). The government expects to optimize state revenues through taxes, but most taxpayers try to pay taxes to a minimum (Aryotama & Firmansyah, 2020a). Most taxpayers consider tax expenses are the company burden, so it must be minimized or the costs incurred because it reduces profits (Abdullah, 2020).…”

“…In contrast, most of the testing results of institutional ownership, audit committee, leverage, and independent commissioners are not associated with tax avoidance. Several previous studies have tested tax avoidance, among others, with liquidity (Abdullah, 2020;Artinasari & Mildawati, 2018;Budianti & Curry, 2018;Gultom, 2021;Mariani & Suryani, 2021;Pasaribu & Mulyani, 2019;Rozak et al, 2018), leverage (Artinasari & Mildawati, 2018;Pajriansyah & Firmansyah, 2017;Pasaribu & Mulyani, 2019;Permata et al, 2018;Saputra et al, 2020), firm size (Martinus et al, 2021;Permata et al, 2018;Saputra et al, 2020), earnings management (Ferdiawan & Firmansyah, 2017;Pajriansyah & Firmansyah, 2017), corporate social responsibility disclosure (Firmansyah & Triastie, 2020;Zeng, 2019), firm age (Permata et al, 2018), with related party transactions (Aryotama & Firmansyah, 2020a), company business strategy (Aryotama & Firmansyah, 2020b), customer concentration (Aryotama & Firmansyah, 2019), transfer pricing aggressiveness (Pramudya et al, 2021;Utami & Irawan, 2022;Wijaya & Rahayu, 2021), company life cycle (Irawan & Afif, 2020), and capital intensity (Artinasari & Mildawati, 2018;Budianti & Curry, 2018;Puspitasari et al, 2021;Saputra et al, 2020;Yulianty et al, 2021;Zeng, 2019).…”

Penghindaran Pajak Di Indonesia: Pengaruh Transfer Pricing dan Customer Concentration Dimoderasi Oleh Peran Komisaris Independen

“…Hal ini karena customer concentration memiliki potensi dalam membuat penghindaran pajak meningkat. Beberapa peneliti menemukan bahwa customer concentration memiliki pengaruh positif terhadap praktik penghindaran pajak (Aryotama & Firmansyah, 2019;Cao dkk, 2020;Huang dkk, 2016) Berbeda dengan hasil tersebut, hasil penelitian Putri (2020) menemukan bahwa customer concentration memiliki pengaruh negatif terhadap praktik penghindaran pajak.…”

“…Beberapa penelitian tidak menemukan pengaruh transfer pricing pada penghindaran pajak (Napitupulu dkk, 2020 Mulyani, 2021). Sebaliknya, beberapa penelitian menemukan bahwa transfer pricing berpengaruh negatif terhadap penghindaran pajak (Aryotama & Firmansyah, 2019). Namun, beberapa peneliti menemukan bahwa transfer pricing berpengaruh positif terhadap penghindaran pajak (Amidu dkk, 2019; N. Putri & Mulyani, 2020).…”

“…Hasil penelitian Putri (2020) menemukan bahwa customer concentration memiliki pengaruh negatif terhadap penghindaran pajak. Berbeda dengan hasil tersebut, Beberapa peneliti menemukan bahwa customer concentration memiliki pengaruh positif terhadap praktik penghindaran pajak (Aryotama & Firmansyah, 2019;Cao dkk, 2020;Huang dkk, 2016). Perusahaan yang melakukan praktik customer concentration memiliki insentif dalam melakukan penghindaran pajak.…”