Open AccessCorporate governance and political connection towards the tax aggressiveness of manufacturing companies in Indonesia
Author(s) -
Ni Luh Putri Setyastrini,
Imam Subekti,
Arum Prastiwi
Publication year - 2021
Publication title -
international journal of management, it and social sciences
Language(s) - English
Resource type - Journals
ISSN - 2395-7492
DOI - 10.21744/irjmis.v8n1.1118
Subject(s) - corporate governance , stock exchange , politics , business , accounting , tax avoidance , corporate tax , double taxation , finance , political science , law
Tax aggressiveness is one of the weaknesses of tax collection with the mechanism of the self-assessment system. Tax aggressiveness is an effort by a company to reduce tax fees through tax planning in which from the legal point of view is deemed as a gray area. This research aims to examine and analyze the impact of company governance as well as a political connection towards tax aggressiveness. This research was conducted on the manufacturing sector in Indonesia Stock Exchange in 2016-2018. The research samples were 80 companies with 240 observations. The data of this research was analyzed by utilizing the multiple regression analysis. The research outcome revealed that the company governance did not affect tax aggressiveness, whereas political connection positively impacted the tax aggressiveness.