PENGARUH PROFITABILITAS, LEVERAGE DAN SALES GROWTH TERHADAP TAX AVOIDANCE PADA PERUSAHAAN MANUFAKTUR YANG TERDAFTAR DI BURSA EFEK INDONESIA

Abstract

Tax Avoidance is part of tax planning which applied for minimalizing tax payment by organizing taxpayers’ business in such a way. Therefore, its tax debts will be in lowest position as long as regulated by Law of Tax either officially or commercially. This research aimed to find out the effect of profitability, Leverage and sales growth on tax avoidance. While, the population was manufacturing companies which were listed on Indonesia Stock Exchange during 2014-2018. Moreover, the data were taken from companies’ financial statement. Furthermore, the data collection technique used purposive sampling. In line with, in order to have number of companies which were taken as sample, it used statistical test with SPSS 22. The research result concluded profitability did not affect on tax avoidance. This occured as companies with higher profit were able to pay payable tax as they were able to manage the profit. On the other hand, Sales Growth did not affect on tax avoidance. It happened since companies with higher sales were able to pay payable tax. In contrast, leverage did not affect tax avoidance as the companies used debts for their operational cost. This made the had higher debt ratio and interest cost.
Keywords: profitability, leverage, sales growth, tax avoidance.