Factors Which Influence Tax Avoidance in Food and Beverage Companies on the IDX
DOI:
https://doi.org/10.59890/ijefbs.v4i3.6Keywords:
Profitability, Capital Intensity, Sales Growth, Committee Audit, Tax AvoidanceAbstract
Tax avoidance denotes a corporation's lawful endeavours to reduce its tax obligations by strategic financial and accounting methodologies. Despite adherence to current legislation, tax avoidance has emerged as a significant issue due to its potential to substantially diminish government tax revenues and impede national development goals.
This study seeks to analyse the impact of profitability, capital intensity, sales growth, and the audit committee on tax avoidance strategies.
The study utilises secondary data derived from the financial statements of food and beverage manufacturing firms listed on the Indonesia Stock Exchange for the period 2022–2024. The sample was chosen with a purposive sampling method grounded in established criteria. Multiple linear regression analysis was employed, and the data were analysed using SPSS software.
The results indicate that profitability, capital intensity, and sales growth significantly influence tax avoidance strategies. The audit committee does not substantially affect tax avoidance. All independent variables concurrently exert a considerable influence on tax evasion. The study suggests that the government ought to reassess existing tax legislation and enhance oversight systems to deter excessive tax dodging techniques.
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