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The Rate of Tax Avoidance in Manufacturing Companies during a Pandemic

Author

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  • Andalia

    (Maros Muslim University, Indonesia Author-2-Name: Author-2-Workplace-Name: Author-3-Name: Author-3-Workplace-Name: Author-4-Name: Author-4-Workplace-Name: Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:)

Abstract

" Objective - This study aims to compare the level of tax avoidance in manufacturing companies before and during the COVID-19 pandemic. This study uses a descriptive quantitative approach. Methodology/Technique - The objects studied are manufacturing companies listed on the Indonesia Stock Exchange in 2019 and 2020. The sample selection uses the purposive sampling method. Findings - The results of the study were seen based on a table analysis containing the ETR value of each sample company. The results showed there was a significant increase from 2019 to 2020. The practice of tax avoidance by manufacturing companies in the food and beverage sub-sector, as well as the industrial sub-sector showed an increase from 2019 as much as 24% to 53% in 2020. Novelty - This is because several companies with ETR values above 25% in 2019 will actually be below 25% in 2020. There are several reasons that underlie this tax avoidance, such as the declining financial stability of each company in 2020, significantly reduced profits in 2020, and less global economic stability. Type of Paper - Empirical."

Suggested Citation

  • Andalia, 2022. "The Rate of Tax Avoidance in Manufacturing Companies during a Pandemic," GATR Journals afr210, Global Academy of Training and Research (GATR) Enterprise.
    • Handle: RePEc:gtr:gatrjs:afr210
    DOI: https://doi.org/10.35609/afr.2022.6.4(3)
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    References listed on IDEAS

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    1. Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
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    More about this item

    Keywords

    Tax Avoidance; Covid-19; economic stability;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • M49 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Other

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