The Effect of Liquidity, Thin Capitalization, Capital Intensity, and Earnings Management on Tax Avoidance in Manufacturing Companies Listed in Indonesia Stock Exchange (IDX) 2010-2020 Period

This study aims to determine the effect of liquidity, thin capitalization, capital intensity, and earnings management on tax avoidance in manufacturing companies listed on the Indonesia Stock Exchange (IDX) for the 2010-2020 period. The type of research used is descriptive quantitative. The research sample used was 34 companies from 184 companies. The sample return method used is the selection of samples for research from the research population by fulfilling several predetermined criteria (purposive sampling). The data type used is secondary data, and the data analysis technique is a multiple linear regression test using Eviews 9 software. The proxy used for tax avoidance is the book-tax difference (BTD). The results of this study indicate that liquidity and earnings management have a positive and significant effect on tax avoidance. Meanwhile, thin capitalization and capital intensity do not affect tax avoidance. Keywords: Tax Avoidance, Liquidity, Thin Capitalization, Capital Intensity, Earnings Management.

Pengaruh Thin Capitalization dan Transfer Pricing Aggressiveness terhadap Penghindaran Pajak dengan Financial Constraints sebagai Variabel Moderasi

The purpose of this study was to determine the effect of thin capitalization, transfer pricing aggressiveness on tax avoidance with financial constraints as moderating variable. This study used a quantitative approach with population with sample of manufacturing companies listed on the Indonesia Stock Exchange from 2016 to 2019. The sampling technique used purposive sampling and obtained 72 companies as samples. This study used panel data and the analysis was multiple linear regression and interaction regression. The results show that thin capitalization, transfer pricing aggressiveness, and financial constraints have a positive effect on tax avoidance. Further research shows that financial constraints strengthen the effect of thin capitalization on tax avoidance, but financial constraints do not moderate the effect of transfer pricing aggressiveness on tax avoidance.

INTERNATIONAL BUSINESS IN UKRAINE: TAX COMPONENT

In the system of regulation of international business, the tax component is of exceptional importance. The development of business is largely dependent on tax policy tools, the actual task of which is to create an optimal tax field in Ukraine, for the development of an open national economic system. The article is devoted to the study of theoretical and practical tax aspects in the international business of Ukraine. Effective level and taxation regime helps to attract foreign capital, develop international business, increase state revenues and increase gross domestic product of the country. The factors hindering the process of investing in our country are considered. The problems, as well as ways of their solution, concerning the tax component of Ukrainian business are analyzed. Detailed attention is focused on some tax aspects, which primarily include: transfer pricing rules, the rule of "thin capitalization", the rules of reporting of international groups of companies by country. Essential characteristics, features and rules of transfer pricing and "thin capitalization" are highlighted. The actions on the BEPS Action Plan are considered, which propose to eliminate the shortcomings of international tax regulation and differences in the national tax legislation of different countries, which promote "concealment" of corporate profits and its artificial transfer to low tax jurisdictions, where companies are no longer engaged in economic activity. The proposals on the improvement of bills that will recognize Ukraine as a cooperating country on taxation issues have been formed. These bills will make it possible to strengthen the economic link between Ukraine and the countries of the CIS and Eastern Europe. Recovering and strengthening these ties is the easiest to date, as each party feels that need. Right now Ukraine is taking measures for their restoration on the basis of an effective market mechanism of economic interaction.

INTERNATIONAL TAX POLICY OF KAZAKHSTAN

The purpose of this article was to study the international aspects of taxation in Kazakhstan. What is relevant for Kazakhstan is that the country implements international standards in its national legislation, for example, the BEPS plan, information exchange, etc. In addition to the implementation of the 15 Actions of the BEPS plan, the country implements some special anti-avoidance rules (SAAR), for example, the transfer pricing rule, the thin capitalization rule, beneficial ownership concept, etc. In order to improve the international tax policy of Kazakhstan, the country needs to continue to implement all the Actions of the BEPS plan, conclude tax treaties, introduce general (GAAR) and targeted anti-avoidance rules (TAAR) into its legislation.

Who generated the loopholes? A case study of corporate tax advisors’ regulatory capture over anti-tax avoidance legislation in Finland

Recently welfare economists and international political economy scholars have increasingly discussed how the corporations seek profits by corroding policies that tackle tax avoidance and undermine public interest. This article contributes to these discussions on so-called regulatory captures in the global wealth chains by providing a comprehensive case study on anti-tax avoidance legislative processes in Finland. The author analyzes the statements that various stakeholders provided during several phases of enacting the interest deduction limitation rule that targets so-called thin capitalization arrangements. Because of this specific research material, the author is able to undertake a nuanced analysis in describing how and whose statements made the difference from the draft version of legislation to the final wording of the law. The evidence suggests corporate interest groups and tax advisory firms influenced the content of the rule as notable tax base eroding loopholes have been included in the Finnish anti-tax avoidance rule. The author also assesses remedies of regulatory captures.

The Effect of Tax System Characteristics on Cross-Border Mergers and Acquisitions

Although determinants of cross-border merger and acquisitions (M&As) have been given substantial attention in the literature, research examining the effect of tax system characteristics on cross-border M&As is more limited. Cross-border M&As have substantial tax implications for both the acquiring firm and the target firm. Because firms evaluate investments based on expected after-tax returns, I expect that managers consider potential tax savings or costs in making investment decisions across tax jurisdictions. In this study, I use hand-collected country-year-level tax system characteristics to examine tax determinants of the volume and direction of cross-border M&As. I find that tax system characteristics such as controlled foreign corporation provisions, thin capitalization provisions, and the presence of a worldwide versus territorial regime have a significant effect on cross-border M&A activity.

Pengaruh Thin Capitalization, Capital Intensity Dan Kepemilikan Institusional Terhadap Penghindaran Pajak Perusahaan Manufaktur Sektor Industri Barang Konsumsi Sub Makanan Dan Minuman

This study aims to examine the effect of thin capitalization, capital intensity and institutional ownership on tax avoidance. The dependent variable used is tax avoidance, and the independent variables used are thin capitalization, capital intensity and institutional ownership. The subjects of this research are manufacturing companies in the food and beverage sub-consumer goods industry sector listed on the 2017-2019 BEI. This sample was selected using a purposive sampling method. The total sample used is 20 sample data. This research method uses multiple linear regression analysis which is processed using spss 25. The results of this study partially show that thin capitalization and institutional ownership have a positive and significant effect, while capital intensity has a negative and significant effect on tax avoidance. Meanwhile, it simultaneously shows that thin capitalization, capital intensity and institutional ownership have an effect on tax avoidance. Based on the results of the determination test which shows the value of the coefficient of determination is 31.1%. These results indicate the ability of the independent variable to explain the dependent variable by 31.1%, while the remaining 68.9% is explained by other variables. Keywords: Thin Capitalization, Capital Intensity, Institutional Ownership and Tax Avoidance

FAKTOR-FAKTOR YANG MEMPENGARUHI TAX AVOIDANCE DENGAN KEPEMILIKAN INSTITUSIONAL SEBAGAI VARIABEL MODERASI

Penelitian ini bertujuan untuk menguji pengaruh Thin Capitalization, Intensitas Modal, dan Kompensasi Rugi Fiskal terhadap Penghindaran Pajak dan untuk menguji Kepemilikan Institusional dalam memoderasi pengaruh Thin Capitalization terhadap Penghindaran Pajak pada perusahaan sektor pertambangan yang terdaftar di Bursa Efek Indonesia tahun 2017- Periode 2019. Penelitian ini menggunakan sampel sebanyak 20 perusahaan sektor pertambangan yang terdaftar di Bursa Efek Indonesia periode 2017-2019 dengan teknik pengambilan sampel menggunakan metode purposive sampling dan data penelitian menggunakan data sekunder. Analisis data menggunakan analisis regresi moderasi dengan software SPSS 25.0. Hasil penelitian ini menunjukkan bahwa Thin Capitalization tidak berpengaruh terhadap Penghindaran Pajak, sedangkan Intensitas Modal dan Kompensasi Rugi Fiskal berpengaruh terhadap Penghindaran Pajak dan Kepemilikan Institusional tidak dapat memoderasi Thin Capitalization terhadap Penghindaran Pajak.