TAX AGRESSIVENESS WITH CORPORATE GOVERNANCE AS A MODERATING: PROFITABILITY, POLITICAL CONNECTION AND FIRM SIZE

Abstract

This study aims to examine and determine the effect of the variables Profitability, Political Connection and Company Size on Tax Aggressiveness with Corporate Governance as a moderating. This research was conducted at manufacturing companies in the consumer goods industry sector listed on the Indonesian Stock Exchange (IDX) with a research period of 2018-2022. The research sample consisted of 95 samples. The data analysis method used in this study is multiple linear regression analysis and Moderated Regression Analysis (MRA).The results of this study indicate that Profitability has a significant and negative effect on Tax Aggressiveness. Meanwhile, political connection and company size have a significant positive effect on tax aggressiveness. Meanwhile, for the interaction test, it was found that Corporate Governance by proxy of Independent Commissioners was not able to moderate the effect of Profitability and Political Connection on Tax Aggressiveness. However, the Independent Commissioner is able to moderate the influence of Company Size on Tax Aggressiveness.