Can Foreign Ownership and Leverage Affect Tax Avoidance
Journal Title: Journal of Economics, Finance and Management Studies - Year 2024, Vol 7, Issue 04
Abstract
A company in carrying out tax avoidance actions is influenced by management decisions and company ownership structure. Companies with a higher level of foreign ownership, then the determination of company policies from foreign parties tends to lead to minimizing the tax burden. Similarly, the leverage owned by the company if it owes too much to foreign companies, it does not rule out the possibility that it will affect the decision of the management to take tax avoidance actions. The purpose of this study is to examine the effect of foreign ownership and leverage on tax avoidance. Quantitative research method, with secondary data obtained from IDX in 2018-2022. The sample used was 35 data. Data analysis using multiple linear regression is assisted by SPSS data processing tools. The results showed the influence of foreign ownership on tax avoidance. While leverage has no effect on tax avoidance. However, simultaneously foreign ownership and leverage affect tax avoidance. The conclusion of this study is that if Telecommunication Companies have the potential to do tax avoidance, it is very detrimental to the country. In the digital era, almost all activities really need the internet. So that Telecommunication Companies have the potential to have large profits, if the company's profits are greater, the hope is that the taxes paid will also be greater so that tax revenues increase, and the state is able to finance nation building.
Authors and Affiliations
Puji Rahayu , Imarotus Suaidah , Septiana Dinar Wahyuni,
Keywords
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- EP ID EP734652
- DOI 10.47191/jefms/v7-i4-43
- Views 38
- Downloads 0
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