PENGARUH CORPORATE GOVERNANCE DAN KONEKSI POLITIK TERHADAP TAX AVOIDANCE

Abstract

This research aims to examine the influence of good corporate governance and political connections to tax avoidance. In this research using good corporate governance mechanism that is managerial ownership, institutional ownership, independent board of commissioner and audit committee. Based on the analysis result can be concluded that managerial ownership and independent board of commissioner have positive influence to tax avoidance. While institutional ownership has a negative influence on tax avoidance, since institutional ownership entrusts all control and management of the company to independent commissioners. And the audit committee is negatively influenced by tax avoidance, because too many audit committee members are not good enough for the company because there are many tasks and jobs that will be divided. While the political connection does not influence the tax avoidance, because the company whose shares are mostly owned by the government are designated as low tax payers risk accordance with the Regulation of Minister of Finance No. 71 / PMK.03 / 2010. This regulation illustrates the belief that in companies whose majority share is owned by the government does not avoid tax evasion.
Keywords: tax avoidance, good corporate governance, political connections, SOEs.