Empirical Analysis of Tax Avoidance Aggressiveness in the Context of Corporate Social Responsibility and Corporate Governance

Abstract

The issue of tax avoidance remains intriguing for further investigation in empirical
studies. This research was conducted to re-examine the influence of corporate social
responsibility and corporate governance on aggressive practices in tax evasion. The
data source is from manufacturing companies in the consumer goods industry sector
listed on the Indonesia Stock Exchange between 2017 and 2021. This research used 168
companies with a purposive sampling method. Data analysis uses multiple linear
regression using statistical software for social sciences. The research results show that
the variables of corporate social responsibility, the presence of independent
commissioners, and institutional ownership have a significant negative impact on
aggressive practices in tax evasion. On the other hand, there is no significant influence
of the audit quality variable on tax evasion. Therefore, the higher the level of corporate
social responsibility disclosure, the proportion of the presence of an independent
board of commissioners, the quality of audits, and the proportion of institutional
ownership, the level of aggressive practices in tax evasion tends to decrease.