Publication Date: 2023/07/31
Abstract: This study aims to examine the influences of transfer pricing, thin capitalization, and return on assets toward tax avoidance that are moderated by political connections. The sample used in this research was manufacturing companies listed on the Indonesian Stock Exchange (IDX) from 2019 to 2021 (3 years), which were 62 companies. The determination of the research sample was the purposive sampling method and the analysis employed panel data with multiple regression methods. The results of the study show that transfer pricing had a positive effect on tax avoidance, but thin capitalization and return on assets had a negative effect on tax avoidance. In addition, Political connections weakened the positive effects of transfer pricing on tax avoidance (Moderation Predictor). However, the political connection did not moderate the influences of thin capitalization and profitability on tax avoidance (Moderation Homologizer).
Keywords: Transfer Pricing, Thin Capitalization, Return on Assets, Tax Avoidance, Political Connection.
DOI: https://doi.org/10.5281/zenodo.8199516
PDF: https://ijirst.demo4.arinfotech.co/assets/upload/files/IJISRT23JUL1787.pdf
REFERENCES