CORPORATE TAX AVOIDANCE: BANKING INDUSTRY IN INDONESIA

Abstract

The primary objective of this research endeavor is to examine the impact of capital intensity, transfer pricing, and sales growth on tax avoidance within the realm of Financial Services Authority-accredited banking institutions. The study's sample comprised conventional commercial banks that were operational from 2017 to 2022. The study utilizes control variables, namely Return on Asset (ROA) and Firm Size. The researchers utilized a purposive sampling technique in order to select a sample of 41 banking companies. The chosen methodology for data analysis involves the utilization of panel data regression analysis, with the study being carried out using Stata 17 software. The research findings suggest that transfer pricing exerts a positive and statistically significant effect on tax avoidance, but sales growth has a negative and statistically significant impact on tax avoidance. In contrast, it may be observed that capital intensity does not exhibit a statistically significant impact on tax avoidance. The present study constitutes a significant scholarly contribution to the extant corpus of literature pertaining to tax avoidance.