The Association Between Related Party Transaction And Tax Avoidance In Indonesia

Putra Aryotama; Amrie Firmansyah

doi:10.47312/aar.v4i02.243

Authors

Putra Aryotama Polytechnic of State Finance STAN
Amrie Firmansyah Polytechnic of State Finance STAN

DOI:

https://doi.org/10.47312/aar.v4i02.243

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.

Downloads

Download data is not yet available.

References

Alm, J. (2012). Measuring, explaining, and controlling tax evasion: lessons from theory, experiments, and field studies. International Tax and Public Finance, 19 (1): 54–77.

Arianandini, P. W., & Ramantha, I. W. (2018). Pengaruh Profitabilitas, Leverage, Dan Kepemilikan Institusional Pada Tax Avoidance. E-Jurnal Akuntansi Universitas Udayana, 22 (3): 2088–2116.

Arieftiara, D., Utama, S., Wardhani, R., & Ning, R. (2015). Analisis pengaruh strategi bisnis terhadap penghindaran pajak, bukti empiris di Indonesia. Simposium Akuntansi Nasional XVIII,18 (1): 1–27.

Azizah, N., & Kusmuriyanto (2016). The effect of related party transaction, leverage, commissioners, and directors compensation on tax aggressiveness. Accounting Analysis Journal, 5 (4): 307–16.

Bhuiyan, M. B. U., & Roudaki, J. (2018). Related party transactions and finance company failure: New Zealand evidence. Pacific Accounting Review, 30 (2): 199–221.

Darmawan, I. G. H., & Sukartha, I. M. (2014). Pengaruh penerapan corporate governance, leverage, return on assets, dan ukuran perusahaan pada penghindaran pajak. E-Jurnal Akuntansi Universitas Udayana, 9 (1): 143–61.

Dewi, N. L. P., & Noviari, N. (2017). Pengaruh ukuran perusahaan, leverage, profitabilitas dan corporate social responsibility terhadap penghindar pajak (tax avoidance). E-Jurnal Akuntansi Universitas Udayana, 21 (1): 830–59.

Dewi, N. N. K., & Jati, I. K. (2014). Pengaruh karakter eksekutif, karakteristik perusahaan, dan dimensi tata kelola perusahaan yang baik pada tax avoidance di Bursa Efek Indonesia. E-Jurnal Akuntansi Universitas Udayana, 6 (2): 249–60.

Ferdiawan, Y., & Firmansyah, A. (2017). Pengaruh political connection, foreign activity, dan real earnings management terhadap tax avoidance. Jurnal Riset Akuntansi Dan Keuangan, 5 (3), 1601-1624

Frank, M. M. Lynch, L. J., & Rego, S. O. (2009). Tax reporting aggressiveness and its relation to aggressive financial reporting. The Accounting Review, 84 (2): 467–96.

Guenther, D. A., Matsunaga, S. R., & Williams, B. M. (2017). Is tax avoidance related to firm risk? The Accounting Review, 92 (1): 115–36.

Hanlon, M., & Heitzman, S. (2010). a review of tax research. Journal of Accounting and Economics, 50 (2–3): 127–78.

Kenton, W. (2019). Related-Party Transaction. https://www.investopedia.com/terms/r/related-partytransaction.asp.

Kirchler, E. (2007). The economic psychology of tax behaviour. New York: Cambridge University Press.

Kusuma, A. C., & Firmansyah, A. (2018). Manajemen laba, corporate governance, kualitas auditor eksternal dan agresivitas pajak. Jurnal Tekun, 8(1), 108-123.

Lestari, G. A. W, & Putri, I. G. A. M. A. D. (2017). Pengaruh corporate governance, koneksi politik, dan leverage terhadap penghindaran pajak. E-Jurnal Akuntansi Universitas Udayana, 18 (3): 2028–54.

Lionita, A., & Kusbandiyah, A. (2017). Pengaruh corporate social responsibility, profitability, leverage, dan komisaris independen terhadap praktik penghindaran pajak pada perusahaan yang terdaftar Di BEI. Kompartemen: Jurnal Ilmiah Akuntansi, XV (1): 1–11.

Mahtani, U.S. (2018). Related party transactions in India and their impact on reported earnings. The Journal of Developing Areas, 53 (1): 165–78.

Marchini, P. L., Mazza, T., & Medioli, A. (2018). Related party transactions, corporate governance and earnings management. Corporate Governance (Bingley), 18 (6): 1124–46.

Nurhidayati, & Fuadillah, H. (2018). The influence of income shifting incentives towards the tax haven country utilization: case study on the companies listed in Indonesian Stock Exchange. Jurnal Akuntansi Dan Keuangan, 20 (1): 27–38.

Park, S. (2018). Related party transactions and tax avoidance of business groups. Sustainability, 10 (10): 1-14.

Rachmawati, N. A. & Martani, D. (2014). Pengaruh large positive abnormal book-tax differences terhadap persistensi laba. Jurnal Akuntansi Dan Keuangan Indonesia, 11 (2): 120–37.

Sari, D. K., Utama, S., Rossieta, H. (2017). Tax avoidance, related party transactions, corporate governance and the corporate cash dividend policy. Journal of Indonesian Economy and Business Volume, 32 (3), 190 – 208.

Oktavia, Kristanto, S. B., Subagyo, & Kurniawati, H. (2012). Transaksi hubungan istimewa dan pengaruhnya.” Jurnal Akuntansi 12, No (November): 701–16.

Wardani, D. K., & Khoiriyah, D. (2018). Pengaruh strategi bisnis dan karakteristik perusahaan terhadap penghindaran pajak. Akuntansi Dewantara, 2 (1): 25–36.

Watts, R. L., & Zimmerman, J. L. (1986). Positive Accounting Theory. Englewood Cliffs, N.J.: Prentice-Hall.

Wijayanti, A., Wijayanti, A., & Chomsatu, Y. (2017). Pengaruh karakteristik perusahaan, GCG dan CSR terhadap penghindaran pajak. Journal of Economic and Economic Education, 5 (2): 113–27.