Tax Avoidance Influenced By Company Profitability, Leverage And Company Size

Abstract

Tax avoidance is a technique to minimize taxes by taking advantage of the weaknesses of the tax law. Tax avoidance in this study is proxied by the Effective Tax Rate (ETR). This research aims to determine the effect of profitability, leverage and company size on tax avoidance. The population in this research are mining sector companies listed on the Indonesia Stock Exchange during the 2016-2019 period, by using sample collection technique of purposive sampling. The regression used in this research was data panel regression with random effect model as selection model. The results of this research show partially showed profitability and leverage positive affected the tax avoidance, while firm size did not affect the tax avoidance.