The Impact of Corporate Governance on Corporate Tax Avoidance in Indonesia
Nurma Gupita Dewi and Siti Alliyah

nurmagupita.stieyppi[at]gmail.com, wildankafa[at]yahoo.co.id
Sekolah Tinggi Ilmu Ekonomi YPPI Rembang
Jl. Raya Rembang-Pamotan KM. 4 Rembang

Abstract

Taxes are the main source of income in Indonesia which aims to encourage sustainable and equitable economic growth. If the economy runs stably, then economic growth will increase from year to year. This research is based on the rise of tax avoidance phenomenon in Indonesia. Various aspects of corporate governance pressure have a strong influence on corporate tax avoidance. This study aims to examine the effect of corporate governance on tax avoidance. Variable corporate governance in this study is proxy with the Corporate Governance Perception Index (CGPI) issued by the Indonesian Institute for Corporate Governance (IICG), while tax avoidance variables are measured by the effective tax rate. The sample in this study were companies listed on the Corporate Governance Perception Index during the 2013-2017 period. This research used purposive sampling criteria and regression linier analysis. The results showed that the corporate governance variable had a positive and significant effect on tax avoidance.

Keywords: Corporate Governance, Corporate Governance Perception Index, Tax Avoidance

Topic: Economics