The Role of Profitability, Leverage, and Corporate Social Responsibility in Corporate Tax Aggressiveness
Keywords:
Tax Aggressiveness, Tax Avoidance, Tax Evasion, Corporate Social Responsibility, LeverageAbstract
This paper investigates the concept of tax aggressiveness and explores its determinants within corporate practices. Tax aggressiveness refers to strategies employed by businesses to reduce their tax liabilities through legal methods (tax avoidance) or illegal methods (tax evasion). While tax planning can reduce financial burdens, excessive tax aggressiveness carries risks such as legal sanctions and reputational damage. The study identifies key determinants influencing tax aggressiveness, including profitability, leverage, company size, and Corporate Social Responsibility (CSR). Profitability allows firms to allocate resources towards tax planning, while leverage enhances opportunities for minimizing tax obligations. The relationship between CSR and tax aggressiveness is crucial, as firms with higher CSR rankings tend to engage in lower tax aggressiveness. This suggests that socially responsible corporations may adopt more ethical tax practices, balancing financial efficiency with public accountability. The findings emphasize the importance of aligning tax strategies with legal and ethical standards to avoid long-term consequences. The paper highlights the significant role of CSR in shaping corporate tax behavior and offers insights into how industries can strategically manage their tax obligations.
References
Adisamartha, I. B. P. F., & Noviari, N. (2015). Pengaruh likuiditas, leverage, intensitas persediaan dan intensitas aset tetap pada tingkat agresivitas wajib pajak badan. E-Jurnal akuntansi universitas udayana, 13(3), 973-1000.
Alkadrie, R., & Khairunnisa, K. (2023). The Effects of Environmental Performance, Inflation and Sales Growth on the Profitability of Basic Industrial and Chemical Companies. Economic and Business Horizon, 2(3). Retrieved from https://journal.lifescifi.com/index.php/ebh/article/view/192
Basyaib, F. (2007). Manajemen Resiko. Jakarta: PT Grasindo.
Harahap, S. S. (2009). Analisis Kritis Atas Pelaporan Finansial. Jakarta: Raja Grafindo Persada.
Hery. (2017). Analisis Pelaporan Finansial (Integrated and Comprehensive edition). Jakarta: Grasindo.
Ilham, R. N., Sinaga, S., Putri, D. E., Sinta, I., & Fuadi, F. (2021). Efek Dari Leverage Dan Ukuran Perusahaan Dalam Memengaruhi Tingkat Profitabilitas. Jurnal Ilmiah Edunomika, 5(02), 466221.
Kasmir. (2017). Analisis Pelaporan Finansial. Yogyakarta: PT Raja Graffindo Persada.
Lanis, R., & Richardson, G. (2012). Corporate social responsibility and tax aggressiveness: An empirical analysis. Journal of Accounting and Public policy, 31(1), 86-108.
Machfoedz, M. U. (1994). Financial ratio analysis and the prediction of earnings changes in Indonesia. Kelola, 7(3), 114-134.
Manurung, J. P., & Lumbantoruan, R. (2021). Pengaruh Transaksi Pihak Berelasi Dan Profitabilitas Terhadap Agresivitas Pajak Tahun 2017 Sampai Dengan 2019 (Pada Perusahaan Manufaktur Sub Sektor Makanan dan Minuman Yang Terdaftar di Bursa Efek Indonesia). Fundamental Management Journal, 6(2), 84-108.
Masyitah, E., Sari, E. P., Syahputri, A., & Julyanthry. (2022). Pengaruh Leverage, Profitabilitas serta Ukuran Perusahaan pada Agresivitas Pajak. Journal Akuntansi serta Pajak, 23(01), 1-10.
Nurlis, N., Indriawati, F., & Meiliyah, A. (2021). Effect of Earning Management and Corporate social responsibility Disclosure on Tax avoidance with Firm size as a moderating variable, Survey on manufacturing companies listed on the Indonesia Stock Exchange. International Journal of Management Studies and Social Science Research, 3(3), 95-103.
Parang, K., Sidharta, J., & Lumbantoruan, R. (2022). The Effect of Taxes Avoidances, Institutional Ownership and Profitabilities on the Cost of Debt on Manufacturing Company Listed in 2017-2019 on The Indonesia Stock Exchange. Fundamental Manajemen Jurnal, 7(1), 61–80.
Puspita, D. A., & Putra, H. C. (2021). Pengaruh Profitabilitas Dan Corporate Social Responsibility Disclosure Terhadap Agresivitas Pajak. Jurnal Administrasi dan Bisnis, 15(2), 71-81.
Reminda, A. D., Tanjung, A. R., & Diyanto, V. (2017). Pengaruh Corporate Social Reponsibility, Profitabilitas, Ukuran Perusahaan Dan Capital Intensity Terhadap Agresivitas Pajak (Studi Empiris pada Perusahaan Perbankan yang Terdaftar di BEI Periode Tahun 2013-2015). Jom Fekon, 4(2), 4279-4293.
Rizki , M., & Nugroho, L. (2024). How Institusional and Manajerial Ownership, Transfer Pricing and Company Size Affect Tax Avoidance?. Economic and Business Horizon, 3(2), 71–83. Retrieved from https://journal.lifescifi.com/index.php/ebh/article/view/470
Shantikawati, N. (2020). Pengaruh Profitabilitas, Leverage, dan Ukuran Perusahaan terhadap Tax Avoidance (Studi Empiris pada Perusahaan Pertambangan yang terdaftar di Bursa Efek Indonesia Periode 2014-2018). Jurnal Indonesia Mandiri.
Suparjo, S., & Dana, Y. A. . (2024). The Role of Corporate Social Responsibility and Reputation Management in Global Marketing Success. Economic and Business Horizon, 3(3), 102–107. Retrieved from https://journal.lifescifi.com/index.php/ebh/article/view/510
Timothy, Y. C. K. (2010). Effects of Corporate Governance on Tax Avoidance. Hong Kong Baptist University, 8, 8-37.
Tristiawan, F., & Yusuf, M. (2022). Pengaruh Ukuran Perusahaan, Leverage, Profitabilitas, dan Sales Growth terhadap Penghindaran Pajak Pada Perusahaan Manufaktur Sektor Industri Barang Konsumsi yang Terdaftar di BEI. Journal Economic Insights, 1(2), 109-127.
Downloads
Published
How to Cite
Issue
Section
License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
