Proceedings of the Tarumanagara International Conference on the Applications of Social Sciences and Humanities (TICASH 2024)

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Factors That Affect Tax Avoidance

Authors
Virginia Patricia1, Sofia Prima Dewi2, *
1Faculty of Economics and Business, Tarumanagara University, Jakarta, Indonesia
2Faculty of Economics and Business, Tarumanagara University, Jakarta, Indonesia
*Corresponding author. Email: sofiad@fe.untar.ac.id
Corresponding Author
Sofia Prima Dewi
Available Online 22 July 2025.
DOI
10.2991/978-2-38476-446-4_16How to use a DOI?
Keywords
Tax Avoidance; Profitability; Company Size; Leverage; Inventory Intensity
Abstract

Taxes could be considered as one of the primary sources of an income in a country. Their main function is to finance state expenditures, economic growth, and the welfare of the community. The government wants to boost tax revenue, while companies want to minimize tax payments because, from a company’s perspective, taxes are burdens that lessen the company’s net profit. One main effort companies can do to lessen tax burdens is to implement tax avoidance. This research has an aim to empirically analyse the effects of profitability, company size, leverage, and inventory intensity on tax avoidance practices. This research uses samples from secondary data, specifically financial reports of consumer non-cyclical sector companies that are listed in the Indonesia Stock Exchange from 2021 to 2023. The selection method of samples used is purposive sampling, with 22 companies of research samples, which amounted to 66 of total data tested in this research. The analysis of multiple linear regression is also used in this research with the EViews version 13 software as helping tool. The outcome of this research shows that, partially, company size positively affects tax avoidance, while profitability, leverage, and inventory intensity does not affect 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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Volume Title
Proceedings of the Tarumanagara International Conference on the Applications of Social Sciences and Humanities (TICASH 2024)
Series
Advances in Social Science, Education and Humanities Research
Publication Date
22 July 2025
ISBN
978-2-38476-446-4
ISSN
2352-5398
DOI
10.2991/978-2-38476-446-4_16How to use a DOI?
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.

Cite this article

risenwbib
TY  - CONF
AU  - Virginia Patricia
AU  - Sofia Prima Dewi
PY  - 2025
DA  - 2025/07/22
TI  - Factors That Affect Tax Avoidance
BT  - Proceedings of the Tarumanagara International Conference on the Applications of Social Sciences and Humanities (TICASH 2024)
PB  - Atlantis Press
SP  - 142
EP  - 151
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-38476-446-4_16
DO  - 10.2991/978-2-38476-446-4_16
ID  - Patricia2025
ER  -