THE EFFECT OF FIRM SIZE AND AUDIT COMMITTEE TOWARDS COMPANIES’ TAX AVOIDANCE

• Main Author: Anjarwi A.W.
• Format: Article
• Language: English
• Published: Grodno State Agrarian University 2019-06-01
• Series: Eurasia: Economics & Business
• Subjects: Tax avoidance; firm size; and audit committees
• Online Access: https://econeurasia.com/issue-2019-06/article_05.pdf

This research aims to find out the effect of firm size and audit committee towards companies’ tax avoidance. The amount of tax avoidance conducted by companies has been very concerning, where this refers to the Panama Paper phenomenon in 2016. Numerous large-scaled companies collectively keeping their funds in tax haven countries for “free tax” which causes loss of the tax imposition basis which were supposed to be absorbed by the government. The legality of tax avoidance is still up for debate, the reason it is viewed as legal is because it does not violate the laws, though in business ethics, this is considered unacceptable. Researchers carried out studies on all businesses listed in BEI throughout 2015-2016. Sampling method used purposive sampling that spanned 253 samples that fulfilled the criteria. Data analysis technique used multiple linear regressions. The test result showed that firm size and audit committee do not affect companies’ tax avoidance.