Determinants Of Tax Avoidance: Evidence From Indonesian Property and Real Estate Firms (2020-2023)

Abstract

This research aims to examine and provide empirical evidence regarding the effect of financial
distress, profitability, firm size, and audit committee on tax avoidance. The study uses a
quantitative approach with secondary data obtained from financial statements and annual
reports of property and real estate sector companies listed on the Indonesia Stock Exchange
(IDX) for the period 2020–2023. The population consists of 88 companies, with a total of 160
observations selected using purposive sampling. Data analysis was conducted using multiple
linear regression with the help of IBM SPSS version 25. The results show that financial distress
has a positive effect on tax avoidance. Meanwhile, profitability, firm size, and audit committee
have a negative effect on tax avoidance. The findings of this research support agency theory and
the theory of planned behavior in explaining tax avoidance behaviors by corporations.