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
Related Articles
- EP ID EP734652
- DOI 10.47191/jefms/v7-i4-43
- Views 46
- Downloads 0
Analysis of Consumptive Behavior in E-Money Users
Payment systems using electronic money (e-money) make it very easy for people to make payment transactions. But on the other hand, electronic money can also affect the lifestyle of various groups in society, because it i...
Entrepreneurial Ecosystem and Sales Growth of Selected Manufacturing Small and Medium Enterprises in South-West, Nigeria
Small and medium scale enterprises (SMEs) play a key role in the development of every nation and thus, instrumental in economic growth and development. They help in promoting prosperity by creating new jobs and increasin...
Supporting the Fight against Corruption in Nigeria through the Whistle Blower Policy: Challenges and Prospects
This paper examined the impact of the whistle blower policy since its inception in Nigeria. It analysed the concept of corruption and corruption perception index ranking of Nigeria by Transparency International. The pape...
The Impact of Leadership and Organizational Trust on Employees' Job Performance When Working Remotely
During the outbreak of the COVID-19 pandemic, remote work was considered an emergency measure to maintain social distancing. Although the pandemic has ended, the convenience of remote work has led some companies and empl...
The Influence of Motivation and Work Discipline on the Performance of Courier Employees at J&T Express Juanda Sidoarjo
J&T Express is a company operating in the field of goods expedition, encompassing both documents and packages. Despite being a new company, J&T Express utilizes IT in its service offerings, providing the convenience of p...