The Association Between Related Party Transaction And Tax Avoidance In Indonesia

Putra Aryotama, Amrie Firmansyah

Abstract


This study aims to examine the association between related party transaction and tax avoidance in Indonesia’ Non-Financial Companies. Related-party transactions, as its name implies, are transactions conducted by companies with its related parties. Meanwhile, tax avoidance is a reduction in corporate tax liability, which is conducted by the company legally. This study employs a quantitative method using linear regression analysis and uses panel data of companies listed under the Indonesia Non-Financial Companies on IDX from 2014 to 2017. The result of this study suggests that related party transaction is negatively associated with tax avoidance.


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DOI: http://dx.doi.org/10.47312/aar.v4i02.243

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