Pengaruh Transfer Pricing dan Political Connection Terhadap Tax Avoidance Dengan Corporate Governance Sebagai Pemoderasi

Abstract

One of the ways that companies can legally reduce their tax burden is through tax avoidance. Transfer pricing and the company's political connections can help facilitate tax avoidance. The purpose of this research is to determine the effect of transfer pricing and political relationships on tax avoidance with corporate governance as a moderating variable in manufacturing companies listed on the Indonesia Stock Exchange between 2018 and 2020. A purposive sampling method was used to select a sample from an existing population of 193 companies, resulting in 30 companies from a total of 90 samples. Data for this study were collected through literature review. The data analysis used is quantitative descriptive analysis. The results of the study show that transfer pricing has a significant effect on tax avoidance efforts, while political relationships have no significant effect on tax avoidance efforts. Corporate governance is proxied by an independent board of commissioners and an audit committee, where the independent board of commissioners can control the influence of transfer pricing and political relationships on tax avoidance, and the audit committee can also control the influence of transfer pricing and political relationships on tax avoidance.