FAMILY OWNERSHIP AND TAX AVOIDANCE IN INDONESIA: THE MODERATING EFFECT OF AUDIT QUALITY

Tama Saiman, Agninta Putri

Abstract


Tax avoidance is an action that can be taken by companies in an effort to reduce their obligation to pay taxes legally. Family and non-family companies  have  different  characteristics  in  making  tax  avoidance decisions where  family companies tend  to  prioritize the  company's reputation in the future. This study aims to examine the effect of family ownership on the occurrence of tax evasion, as well as the role of audit quality in moderating this relationship. There are 777 companies listed on  the  Indonesia Stock Exchange from 2017 to  2021 as  the  study population. Companies that meet the sample criteria are 239 companies. The data analysis method used in this study is the  panel regression method. The results showed that family ownership can influence ETR in  a  significant positive way.  The  effect  of  audit  quality  cannot strengthen the relationship between family ownership and tax evasion.

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