Political Connections and Tax Avoidance

Abstract Purpose - This study aims to find empirical evidence whether political connections affect tax avoidance. Design/methodology/approach - The research method used is a quantitative research method from annual reports and financial statements of primary consumption sector companies listed o...

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Bibliographic Details
Main Authors: Sherin Tjahyadi, Verani Carolina
Format: Article
Language:English
Published: Maranatha Christian University 2024-05-01
Series:Jurnal Akuntansi
Online Access:https://journal.maranatha.edu/index.php/jam/article/view/8318
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Summary:Abstract Purpose - This study aims to find empirical evidence whether political connections affect tax avoidance. Design/methodology/approach - The research method used is a quantitative research method from annual reports and financial statements of primary consumption sector companies listed on the IDX (Indonesia Stock Exchange) for 2019-2021. The sampling method used is a non-probability sampling method (purposive sampling). This study used regression panel data processed using Eviews 12. Findings - the results showed that political connections affect tax avoidance. Research limitations/implications – Investors who wish to invest in a company may choose to invest in companies with political connections due to the minimal tax avoidance practices carried out in such companies. Keywords: Tax, Political Connections, and Tax Avoidance
ISSN:2085-8698
2598-4977