The Effect of Transfer Pricing, Capital Intensity and Financial Distress on Tax Avoidance with Firm Size as Moderating Variables
Year: 2018
Type: article
Abstract: Introduction.Tax avoidance is strategies and techniques that take advantage of grey areas contained in the tax law itself.The different interests between business people and the tax office make tax avoidance a common practice.The data used in this study is secondary data from Indonesia Stock Exchange.The population of this research is 41 mining companies which are listed in Indonesian Stock Exchanges in during period 2013 -2017.The number of companies that will be used for the sample in this study is 16 companies.The analytical tool used in this study is multiple regression analysis with moderating variables Purpose.The purpose of the article is to investigate and get empirical evidence about the effect of transfer pricing, financial distress, and capital intensity on the tax avoidance with f irm size as a moderator variable.Results.The results showed that transfer pricing significantly affected tax avoidance, positive influence, financial distress significantly affected tax avoidance, negative influence, while capital intensity did not signi ficantly affect tax avoidance, and firm size did not moderate the relationship between transfer pricing, financial distress, and capital intensit y on tax avoidance Conclution.Financial distress and transfer pricing are variables that must be considered be cause they show a significant influence on tax avoidance, especially transfer pricing, government regulations related to transfer pricing have proven effective in combating tax avoidance.
Source: Modern Economics
Authors: M. Maulana, Taufiq Marwa, Tertiarto Wahyudi
Institution: Sriwijaya University
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W2901006054