The effect of internal control on tax avoidance: the case of Indonesia

Bimo, Irenius Dwinanto; Prasetyo, Christianus Yudi; Susilandari, Caecilia Atmini

doi:10.1108/jed-10-2019-0042

Cited by 34 publications

(57 citation statements)

References 42 publications

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“…In relation to agency theory, good corporate governance will increase the effectiveness of tax avoidance to increase company value and reduce tax risk. The results of this study are not in line with research conducted by Bimo, Prasetyo, & Susilandari (2019) which states more effective internal control reduces tax avoidance. Based on empirical evidence from the research, internal control can reduce tax avoidance because it can prevent and detect mistakes made by management either intentionally or unintentionally so that management complies with applicable regulations.…”

Section: Multiple Linear Regressionscontrasting

confidence: 99%

“…Research conducted by Bimo, Prasetyo, & Susilandari (2019) states that more effective internal control reduces tax avoidance. Based on empirical evidence from the research, internal control can reduce tax avoidance because it can prevent and detect mistakes made by management either intentionally or unintentionally so that management complies with applicable regulations.…”

Section: Tax Avoidance and Effectiveness Internal Controlmentioning

confidence: 99%

“…The results of previous studies conducted by Bimo, Prasetyo, & Susilandari (2019) states that the most effective internal control, the easier to reduce tax avoidance in companies. When compared with other studies, not many researchers have examined the effectiveness of internal control variables so that it becomes a research gap that needs to be developed in this study.…”

Section: Introductionmentioning

confidence: 97%

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The Effect of Corporate Governance on Tax Avoidance: Evidence from Indonesia

Tania

Mukhlasin

2020

MERJ

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This study aims to analyze the effect of the effectiveness of internal control, independent commissioners, the expertise of the board of commissioners, the number of audit committees, and the expertise of the audit committee on tax avoidance in manufacturing companies listed in Indonesia Stock Exchange period 2016-2018. This research is expected to be a material consideration for companies in making decisions related to taxation. The deductive approach used in this study by developing hypotheses based on relevant theories and findings of previous studies. Agency theory is used to see the effect of corporate governance on tax avoidance. The data collection method uses secondary data from the company's financial statements and annual reports according to specific criteria. Data analysis was performed by descriptive statistics and multiple linear regression. The results of the regression analysis prove that effectiveness of internal control and number of audit committees had a positive effect which means higher effectiveness of internal control and number of audit committees cause more tax avoidance, conversely independent commissioners and expertise of the board of commissioners had a negative effect which shows greater independent commissioners and expertise of the board of commissioners cause less tax avoidance. Another result claim that the expertise of the audit committee did not affect on tax avoidance. In contrast to previous studies, this study is more varied by combining several independent variables. JEL Codes: G34, H26.

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Section: Multiple Linear Regressionscontrasting

confidence: 99%

Section: Tax Avoidance and Effectiveness Internal Controlmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 97%

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The Effect of Corporate Governance on Tax Avoidance: Evidence from Indonesia

Tania

Mukhlasin

2020

MERJ

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“…Although old saw states that death and taxes are the only things certain in life, taxes are far from being certain in terms of payment (Alm and Torgler, 2011). Tax expense is an operational cost that reduces company profits, so tax non-compliance is a way to increase reported profits (Bimo et al, 2019;Lee and Kao, 2018). Tax non-compliance is a critical problem worldwide (Ozili, 2020;Torregrosa-Hetland, 2020;Palil et al, 2016).…”

Section: Introductionmentioning

confidence: 99%

Do public governance and patriotism matter? Sales tax compliance among small and medium enterprises in developing countries: Jordanian evidence

Alshira’h

AL-Shatnawi

Al-Okaily

et al. 2020

EMJB

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PurposeThe purpose of this study is to better understand the issues on tax compliance. This study aims to examine the influence of patriotism and public governance on the sales tax compliance of small and medium enterprises (SMEs) and to examine the interaction between patriotism and public governance on sales tax compliance.Design/methodology/approachThis study was carried out by soliciting the opinions of owner-managers of SMEs in Jordan through a survey that was distributed by self-administered. This paper uses partial least squares structural equation modelling to investigate the influence of patriotism, public governance and the interaction of these two mechanisms on sales tax compliance for a sample of 385 SMEs.FindingsThis paper finds that patriotism and the public governance increase and improve the level of sales tax compliance. The findings also supported the interaction effect of patriotism on the relationship between public governance with sales tax compliance. Thus, all the hypothesised relationships were supported.Practical implicationsTax authorities and policymakers in developing majority societies in developing countries and in other Arab countries, especially in Jordan, may use the results to focus their interest on the formulation of policies founded on the outcomes of the study to strengthen the compliance of eligible SMEs to further boost their sales collections.Originality/valueVery few studies have examined the determinants of sales tax compliance, and there has been an absence of work that examines the influence of the patriotism and public governance on sales tax compliance. This paper, therefore, fills a gap in the literature by providing the first empirical evidence about the influence of patriotism and public governance on sales tax compliance of SMEs in developing countries. This study is the initial paper to examine the interaction between patriotism and public governance on sales tax compliance among SMEs in developing countries

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“…Para manajer dituntut untuk meningkatkan nilai perusahaan agar dapat menarik investor, peningkatan nilai perusahaan dilakukan dengan cara meningkatkan kapasitas produksi perusahaan. Di sisi lain, biaya untuk peningkatan produksi perusahaan berasal dari biaya yang seharusnya dikeluarkan untuk pembayaran pajak [21].…”

Section: Metode Penelitianunclassified

Motivasi Manajer dalam Melakukan Manajemen Laba Dikaji dalam Pandangan Islam

Azis

2020

JRAAM

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Tanggal masuk 14-01-2020 Managers' motivation to do earnings management are due to the capital market expectations, management compensation contracts, lending contracts motivations, political motivation. This study aimed to review managers' movitation in earnings management viewed from Islamic perspective that sourced from the Qur'an and Hadith, as well as supplemented by PSAK Sharia. The results of the study stated that manager's motivation for earnings management is still within the limits of accounting standards. Compliance in application of accounting standards is reflected by the obligation to obey Ulil Amri. However, utilizing position to maximize bonuses, presenting biased information, presenting lust are attitudes that is prohibited in Islamic teachings Tanggal revisi 24-01-2020 Tanggal diterima 27-05-2020

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The effect of internal control on tax avoidance: the case of Indonesia

Cited by 34 publications

References 42 publications

The Effect of Corporate Governance on Tax Avoidance: Evidence from Indonesia

The Effect of Corporate Governance on Tax Avoidance: Evidence from Indonesia

Do public governance and patriotism matter? Sales tax compliance among small and medium enterprises in developing countries: Jordanian evidence

Motivasi Manajer dalam Melakukan Manajemen Laba Dikaji dalam Pandangan Islam

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