THE FINANCIAL PUZZLE OF TAX AVOIDANCE: INSIGHTS FROM PROFITABILITY, LEVERAGE, ASSET INTENSITY AND SALES GROWTH

Autores

DOI:

https://doi.org/10.18623/rvd.v22.n2.3202

Palavras-chave:

Tax Avoidance, Profitability, Leverage, Fixed Asset Intensity, Sales Growth, Mining Sector, Indonesia

Resumo

Tax revenue is a crucial component in financing national development, particularly in infrastructure, healthcare, and education sectors. However, the effectiveness of tax collection in Indonesia is hindered by the widespread practice of tax avoidance. Tax avoidance, although legal, reduces the state's tax revenue and poses a challenge to the government's fiscal policies. This study examines the impact of profitability, leverage, fixed asset intensity, and sales growth on tax avoidance among mining companies listed on the Indonesia Stock Exchange (IDX) from 2021 to 2022. Using a quantitative approach with panel data regression analysis, this study aims to provide empirical evidence regarding corporate tax behavior in Indonesia. The findings indicate that profitability and leverage significantly influence tax avoidance, whereas fixed asset intensity and sales growth exhibit mixed effects. The results align with agency and legitimacy theories, suggesting that firms engage in tax avoidance to optimize financial performance while maintaining stakeholder legitimacy. These findings contribute to the literature on corporate tax strategies and offer practical insights for policymakers in designing tax regulations that minimize loopholes for aggressive tax avoidance. Strengthening tax governance and ensuring stricter enforcement mechanisms are recommended to enhance tax compliance among corporations.

Referências

Abor, J. (2005). The Effect Of Capital Structure On Profitability: An Empirical Analysis Of Listed Firms In Ghana. The Journal Of Risk Finance, 6(5), 438–445.

Adelina, D., & Nugrahanto, A. (2021). Pengaruh Pengetahuan Perpajakan Terhadap Kepatuhan Pajak Pada Self Assessment System Di Indonesia. Jurnal Informasi, Perpajakan, Akuntansi, Dan Keuangan Publik. Https://Doi.Org/10.25105/JIPAK.V16I1.8374

Akintoye, I. R., Adegbie, F. F., & Onyeka-Iheme, C. V. (2020). Tax Planning Strategies And Profitability Of Quoted Manufacturing Companies In Nigeria. Journal Of Finance And Accounting, 8(3), 148–157.

Apriatna, P., & Oktris, L. (2022). The Effect Of Profitability, Company Size, And Sales Growth On Tax Avoidance With Leverage As A Moderating Variable. International Journal Of Innovative Science And Research Technology, 7(8), 223–230.

Arifiyanto, M. N. (2021). Politik Hukum Pengaturan Prinsip Self Assesment System Atas Pelaporan Harta Kekayaan Wajib Pajak Dalam Undang-Undang Ketentuan Umum Dan Tata Cara Perpajakan. Jurnal Hukum Bisnis Bonum Commune. Https://Doi.Org/10.30996/Jhbbc.V4i1.4319

Baudot, L., Johnson, J. A., Roberts, A., & Roberts, R. W. (2020). Is Corporate Tax Aggressiveness A Reputation Threat? Corporate Accountability, Corporate Social Responsibility, And Corporate Tax Behavior. Journal Of Business Ethics, 197–215.

Blay, A., Gooden, E., Mellon, M., & Stevens, D. (2018). The Usefulness Of Social Norm Theory In Empirical Business Ethics Research: A Review And Suggestions For Future Research. Journal Of Business Ethics, 152, 191–206. Https://Doi.Org/10.1007/S10551-016-3286-4

Brush, T. H., Bromiley, P., & Hendrickx, M. (2000). The Free Cash Flow Hypothesis For Sales Growth And Firm Performance. Strategic Management Journal, 21(4), 455–472.

Dowling, J., & Pfeffer, J. (1975). Organizational Legitimacy. Sociological Perspectives, 18, 122–136. Https://Doi.Org/10.2307/1388226

Duli, S. (2015). Preventive Coping An Important Predictor Of Personal Accomplishments In Special Education In Albania, According To Burnout Perspective. Https://Consensus.App/Papers/Preventive-Coping-An-Important-Predictor-Of-Personal-Duli/093f0b4b5d6c5dbc95a5182c6638fe92/

Ganesha, H. R., & Aithal, P. S. (2022). Choosing An Appropriate Data Collection Instrument And Checking For The Calibration, Validity, And Reliability Of Data Collection Instrument Before Collecting The Data During Ph. D. Program In India. International Journal Of Management Technology And Social Sciences, 7(2), 497–513.

Karundeng, F., Upa, V. A., & Dananjaya, Y. (2020). Analysis Of The Effect Of Corporate Social Responsibility On Tax Avoidance With Profitability And Firm Size As Moderating Variables. International Journal Of Society Systems Science, 12(3), 215–230.

Luft Mobus, J. (2005). Mandatory Environmental Disclosures In A Legitimacy Theory Context. Accounting, Auditing & Accountability Journal, 18(4), 492–517.

Miller, M. H. (1977). Debt And Taxes. The Journal Of Finance, 32(2), 261–275.

Mulyati, Y., Subing, H. J. T., Fathonah, A. N., & Prameela, A. (2019). Effect Of Profitability, Leverage And Company Size On Tax Avoidance. International Journal Of Innovation, Creativity And Change, 6(8), 26–35.

Nathania, C., Wijaya, S., Hutagalung, G., & Simorangkir, E. N. (2021). The Influence Of Company Size And Leverage On Tax Avoidance With Profitability As Intervening Variable At Mining Company Listed In Indonesia Stock Exchange Period 2016-2018. International Journal Of Business, Economics And Law, 24(2), 132–140.

Picas, S., Reis, P., Pinto, A., & Abrantes, J. L. (2021). Does Tax, Financial, And Government Incentives Impact Long-Term Portuguese Smes’ Sustainable Company Performance? Sustainability, 13(21), 11866.

Rahmayani, M. W., Hernita, N., & Riyadi, W. (2023). Company Size And Profitability Against Tax Avoidance In Coal Sector Mining Companies Listed On The IDX In 2018-2021. International Journal Of Professional Business Review: Int. J. Prof. Bus. Rev., 8(8), 59.

Roe, M. J. (2021). Corporate Purpose And Corporate Competition. Wash. UL Rev., 99, 223.

Shubita, M. F. (2024). The Relationship Between Sales Growth, Profitability, And Tax Avoidance. Innovative Marketing, 20(1), 113.

Tanko, U. M. (2020). The Moderating Effect Of Profitability On The Relationship Between Ownership Structure And Corporate Tax Avoidance In Nigeria Listed Consumers Goods Firms. International Journal Of Business And Technopreneurship, 10(2), 153–172.

Whyte, S. T. (2021). Reliable Data Collection: A Tool For Data Integrity In Nigeria. Walden University.

Williamson, J. (1966). Profit, Growth And Sales Maximization. Economica, 1–16.

Downloads

Publicado

2025-10-03

Como Citar

Pahala, I., Muliasari, I., Tunnisa, S. L., Wastuti, W., Abdulah, E. E., & Rismawati. (2025). THE FINANCIAL PUZZLE OF TAX AVOIDANCE: INSIGHTS FROM PROFITABILITY, LEVERAGE, ASSET INTENSITY AND SALES GROWTH. Veredas Do Direito , 22(2), e3202 . https://doi.org/10.18623/rvd.v22.n2.3202

Edição

v. 22 n. 2 (2025): Veredas do Direito, v. 22, n. 2 2025

Seção

Artigos

Licença

Submeto (emos) o presente trabalho, texto original e inédito, de minha (nossa) autoria, à  avaliação de Veredas do Direito - Revista de Direito, e concordo (amos) que os direitos autorais a ele referentes se tornem propriedade exclusiva  da Revista Veredas, sendo vedada qualquer  reprodução total ou parcial, em qualquer outra parte ou outro meio de divulgação impresso ou eletrônico, dissociado de Veredas do Direito, sem que a necessária e prévia autorização seja solicitada por escrito e obtida junto ao Editor-gerente. Declaro (amos) ainda que não existe conflito de interesse entre o tema abordado, o (s) autor (es) e empresas, instituições ou indivíduos.

Reconheço (Reconhecemos) ainda que Veredas está licenciada sob uma LICENÇA CREATIVE COMMONS:

Licença Creative Commons Attribution 3.0