Open AccessDETERMINANT TAX AVOIDANCE IN BASIC AND CHEMICAL INDUSTRY MANUFACTURING COMPANIES LISTED ON THE IDX
Author(s) -
Hamilah Hamilah,
Kenny F. Situmorang
Publication year - 2021
Publication title -
sosiohumaniora
Language(s) - English
Resource type - Journals
ISSN - 2443-2660
DOI - 10.24198/sosiohumaniora.v23i2.30727
Subject(s) - profitability index , leverage (statistics) , business , tax avoidance , profit (economics) , debt to equity ratio , equity (law) , debt , econometrics , monetary economics , finance , economics , microeconomics , double taxation , statistics , population , demography , sociology , political science , law , nonprobability sampling , mathematics
Profitability is one factor to attribute the company’s financial condition to tax avoidance. Leverage is a ratio to measure a company’s ability to pay all its liabilities both short-term and long-term. In addition to profitability and leverage, sales growth can also affect tax avoidance activities. By measuring the sales growth of a company can predict how much profit it earns so that the company will tend to practice tax avoidance. The purpose of this research is to build a theory that serves to explain a relationship. The relationship used is a causal relationship that influences variables and other variables. The study uses quantitative research methods with a causal descriptive and associative approach to determine the influence between two or more variables. The test results showed that returns on assets, debt to equity ratio, and sales growth affected the cash effective tax rate.f research