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Urecol Journal. Part G: Multidisciplinary ResearchUrecol Journal. Part G: Multidisciplinary Research

A company that develops properly will have an impact on the income and the tax of company. Companies with high income, the tax rate will be higher which will result in tax avoidance. The purpose of this study was to analyze the influence of profitability, leverage, liquidity, firm size, and audit committee on tax avoidance. The population in this study are manufacturing companies listed on the Indonesia Stock Exchange (IDX) during the 2016-2020. The sample was determined by purposive sampling technique and obtained a sample of 300 companies. This research uses statistical analysis by regression analysis. The results in this study are profitability, leverage, liquidity, firm size and audit committee had affect the tax avoidance. Meanwhile firm size had no effect on tax avoidance.

The study concludes that profitability, leverage, liquidity, and the audit committee influence tax avoidance, while company size does not.This suggests that companies with higher profitability, leverage, and liquidity are more likely to engage in tax avoidance strategies.The presence of an audit committee also appears to be associated with tax avoidance.However, the size of the company does not seem to play a significant role in its tax avoidance practices.

Penelitian selanjutnya dapat memperluas cakupan dengan melibatkan sektor perusahaan lain selain manufaktur untuk melihat apakah hasil penelitian ini konsisten di berbagai industri. Selain itu, penelitian dapat menggabungkan variabel-variabel lain yang mungkin mempengaruhi tax avoidance, seperti good corporate governance (GCG) atau tingkat pendidikan manajemen, untuk mendapatkan pemahaman yang lebih komprehensif. Terakhir, penelitian kualitatif dapat dilakukan untuk menggali lebih dalam motivasi dan strategi yang digunakan perusahaan dalam melakukan tax avoidance, sehingga dapat memberikan rekomendasi kebijakan yang lebih efektif untuk mengurangi praktik penghindaran pajak yang merugikan negara.

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