The Impact of Corporate Governance on Indonesian Banking Tax Avoidance

DOI

10.2991/978-94-6463-809-7_9How to use a DOI?

Keywords

Corporate Governance; Indonesian Banking; Tax Avoidance

Abstract

The company’s goal in operating is to make a lot of money so that the tax burden on its income can lead to aggressive tax activities, such as tax avoidance. Since it does not violate the law, tax avoidance is a legitimate tactic to lessen the tax burden. However, because businesses and the government have different interests, tax avoidance can also be a barrier to maximizing tax revenues. Implementing corporate governance, as shown by independent commissioners, institutional ownership, managerial ownership, audit committees, and audit quality, is one strategy banks can use to lessen tax avoidance. The goal of the study is to demonstrate empirically how tax avoidance practices might be impacted by banking governance, which is listed on the Indonesia Stock Exchange. Quantitative description using data from annual reports is the study methodology employed. A bank operating between 2019 and 2023 serves as the research sample. Eviews-12 is a software tool that helps with this study. According to the research’s findings, the Bank’s number of independent commissioners and the Big Four KAP audit results can both lessen the bank management’s tax evasion practices. The Bank’s audit committee, managerial ownership, and institutional ownership make up the corporate governance component, although they are powerless to stop management’s tax avoidance.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Verawati Verawati
AU  - Sriwati Sriwati
AU  - Herni Kurniawati
PY  - 2025
DA  - 2025/08/13
TI  - The Impact of Corporate Governance on Indonesian Banking Tax Avoidance
BT  - Proceedings of the Thirteenth International Conference on Entrepreneurship and Business Management UNTAR 2024 (ICEBM 2024)
PB  - Atlantis Press
SP  - 106
EP  - 121
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-809-7_9
DO  - 10.2991/978-94-6463-809-7_9
ID  - Verawati2025
ER  -