The role of corporate governance in enhancing the influence of tax planning on tax disclosure
DOI:
https://doi.org/10.26661/2522-1566/2023-4/26-02Keywords:
corporate government, tax, transparacy, tax planning, tax disclosureAbstract
Purpose: The paper studies the relationship between tax disclosure, tax planning and governance in the context of Indonesian public companies. It examines the impact of opportunistic management behavior on tax disclosure and the role of governance in influencing tax-related management decisions. Design/Methodology/Approach: The study uses Moderated Regression Analysis (MRA) to test the relationship between the variables. For carrying out the analysis, the secondary data recorded on the Indonesian Stock Exchange for the period 2017-2021 is used. This study includes all companies listed on the IDX, totaling 787 across various industrial sectors. However, only 74 companies meet the criteria. Findings: The results suggest that tax planning can be used as a means to maintain corporate prosperity, but it may weaken tax disclosure. Governance plays an important role in influencing management decisions regarding tax management. Originality/value: The study provides insights into the dynamics of tax disclosure, tax planning, and governance in the Indonesian context.
JEL Classification: G30, G31, G32
References
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Balakrishnan, K., Blouin, J. L., & Guay, W. R. (2019). Tax Aggressiveness and Corporate Transparency. The Accounting Review, 94(1), 45–69. https://doi.org/10.2308/accr-52130
Brauner, Y., & Stewart, M. (Eds.). (2013). Tax, Law and Development. Edward Elgar Publishing. https://doi.org/10.4337/9780857930026
Chandrarin, G. (2017). Metode Riset Akuntansi: Pendekatan Kuantitatif. Salemba empat.
Darussalam, D., & Septriadi, D. (2017). Perjanjian Penghindaran Pajak Berganda: Panduan, Interpretasi, dan Aplikasi. Penerbit DDTC (PT Dimensi Internasional Tax).
Desai, M. A., & Dharmapala, D. (2009). Corporate Tax Avoidance and Firm Value. The Review of Economics and Statistics, 91(3), 537–546.
Hansen, H. K., & Flyverbom, M. (2015). The politics of transparency and the calibration of knowledge in the digital age. Organization, 22(6), 872–889. https://doi.org/10.1177/1350508414522315
Harsono, B., & Lazarus, R. (2021). Pengaruh Tata Kelola Perusahaan Terhadap Pengungkapan Pajak Pada Perusahaan Yang Terdaftar Di Bursa Efek Indonesia. Combines: Conference on Management, Business, Innovation, Education, and Social Sciences, 1(1).
Henry, E., Massel, N., & Towery, E. (2016). Increased Tax Disclosures and Corporate Tax Avoidance. National Tax Journal, 69(4), 809–829. https://doi.org/10.17310/ntj.2016.4.04
Illinova, J. A., & Nuzula, N. F. (2022). Pengaruh Corporate Governance terhadap Profitabilitas pada Sektor Finance (Studi pada Perusahaan Sektor Finance yang Terdaftar di Bursa Efek Indonesia Periode 2016-2018). Profit: Jurnal Administrasi Bisnis, 16(1).
Kerr, J. N. (2019). Transparency, Information Shocks, and Tax Avoidance. Contemporary Accounting Research, 36(2), 1146–1183. https://doi.org/10.1111/1911-3846.12449
Lenter, D., Slemrod, J., & Shackelford, D. (2003). Public Disclosure of Corporate Tax Return Information: Accounting, Economics, and Legal Perspectives. National Tax Journal, 56(4), 803–830. https://doi.org/10.17310/ntj.2003.4.06
Lin, X., Liu, M., So, S., & Yuen, D. (2019). Corporate social responsibility, firm performance and tax risk. Managerial Auditing Journal, 34(9), 1101–1130. https://doi.org/10.1108/MAJ-04-2018-1868
Mgammal, M. H. (2017). The Effect of Ownership Structure on Voluntary Disclosure: Evidence from Saudi Arabia. Journal of Advanced Management Science, 5(2), 138–151. https://doi.org/10.18178/joams.5.2.138-151
Mgammal, M. H. (2019). The effect of components of tax saving on tax disclosure: A panel data approach in Malaysian listed companies. Pacific Accounting Review, 31(4), 574–601. https://doi.org/10.1108/PAR-10-2018-0080
Mgammal, M. H., Bardai, B., & Ku Ismail, K. N. I. (2018). Corporate governance and tax disclosure phenomenon in the Malaysian listed companies. Corporate Governance: The International Journal of Business in Society, 18(5), 779–808. https://doi.org/10.1108/CG-08-2017-0202
Minnick, K., & Noga, T. (2010). Do corporate governance characteristics influence tax management? Journal of Corporate Finance, 16(5), 703–718. https://doi.org/10.1016/j.jcorpfin.2010.08.005
Razali, M. W. M., Sandimalai, S., Lee, D. I. Y., & Lunyai, J. (2022). Corporate Social Responsibility (CSR) Disclosure and Tax Planning: A Study on Malaysian Listed Companies. International Business Research, 15(10), 1–30.
Rego, S. O. (2003). Tax-Avoidance Activities of U.S. Multinational Corporations*. Contemporary Accounting Research, 20(4), 805–833. https://doi.org/10.1506/VANN-B7UB-GMFA-9E6W
Sanusi, A. (2017). Metode Penelitian Bisnis (Cet 7). Salemba empat.
Saptono, P. B., & Purwanto, D. (2022). Historical Development of Good Corporate Governance in Indonesia (1998-2020): Government’s Role in Establishing the Regulatory Framework. Jurnal Borneo Administrator, 18(3), 263–278. https://doi.org/10.24258/jba.v18i3.1041
Sartika, W. (2012). Analisis Hubungan Penghindaran Pajak terhadap Biaya Hutang dan Kepemilikan Institusional sebagai Variable Pemoderasi [Undergraduate Thesis]. Universitas Indonesia.
Sejati, F. R., & Prasetianingrum, S. (2019). Pengaruh Agresivitas Pajak, Kinerja Laba dan Leverage Terhadap Transparansi Perusahaan. Berkala Akuntansi Dan Keuangan Indonesia, 4(1), 70. https://doi.org/10.20473/baki.v4i1.14051
Stiglingh, M., Smit, A.-R., & Smit, A. (2022). The relationship between tax transparency and tax avoidance. South African Journal of Accounting Research, 36(1), 1–21. https://doi.org/10.1080/10291954.2020.1738072
Zulvina, S. (2017). Analisis Perumusan Kebijakan Mandatory Disclosure Rules sebagai Alternatif dalam mengatasi Praktik Penghindaran Pajak di Indonesia. JURNAL PAJAK INDONESIA (Indonesian Tax Review), 1(1), 65–75. https://doi.org/10.31092/jpi.v1i1.163
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Published
2023-12-20
Issue
Section
Finance, Banking and Insurance
How to Cite
Syafi’i, M., Chandrarin, G. and Zuhroh, D. (2023) “The role of corporate governance in enhancing the influence of tax planning on tax disclosure”, Management and Entrepreneurship: Trends of Development, 4(26), pp. 27–38. doi:10.26661/2522-1566/2023-4/26-02.
