Does the Board of Commissioners Affect Tax Avoidance? Evidence from Banking Industry in Indonesia

Supriyati, Indah Hapsari

Abstract

Tax avoidance is one of the company's taxation strategies to reduce a company's tax burden. In order to realize tax avoidance efforts without incurring tax risks and sanctions, the role of the board of commissioners is important in tax avoidance efforts. The board of commissioners have to ensure the business strategy, management, potential risk in every decision made and ensure that the company's activities comply with applicable legal regulations. The board of commissioners is expected to be able to supervise and control tax policy. The board of commissioners must be able to carry out its supervisory function appropriately, independently and transparently in order to optimize financial performance and company sustainability. Research conducted on 156 samples of banking company data in Indonesia for the 2015-2019 period using regression testing has proven that only the variable number of independent commissioners has a significant effect on tax avoidance efforts. As for the variable of gender, tenure and political connections of the board of commissioners have no significant effect on tax avoidance efforts. The number of independent commissioners is the main factor affecting tax avoidance efforts. This is in line with the regulations of the Financial Services Authority and the Limited Liability Company Law.

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Paper Citation


in Harvard Style

Supriyati. and Hapsari I. (2021). Does the Board of Commissioners Affect Tax Avoidance? Evidence from Banking Industry in Indonesia. In Proceedings of the 3rd International Conference on Finance, Economics, Management and IT Business - Volume 1: FEMIB, ISBN 978-989-758-507-4, pages 103-110. DOI: 10.5220/0010469101030110


in Bibtex Style

@conference{femib21,
author={Supriyati and Indah Hapsari},
title={Does the Board of Commissioners Affect Tax Avoidance? Evidence from Banking Industry in Indonesia},
booktitle={Proceedings of the 3rd International Conference on Finance, Economics, Management and IT Business - Volume 1: FEMIB,},
year={2021},
pages={103-110},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0010469101030110},
isbn={978-989-758-507-4},
}


in EndNote Style

TY - CONF

JO - Proceedings of the 3rd International Conference on Finance, Economics, Management and IT Business - Volume 1: FEMIB,
TI - Does the Board of Commissioners Affect Tax Avoidance? Evidence from Banking Industry in Indonesia
SN - 978-989-758-507-4
AU - Supriyati.
AU - Hapsari I.
PY - 2021
SP - 103
EP - 110
DO - 10.5220/0010469101030110