Repository Universitas Pakuan

Detail Karya Ilmiah Dosen

HAQI FADILLAH, JENAL ABIDIN, MONANG SITUMORANG, NUR AMALINA MOHAMAD ZAKI

Judul : WHAT THE THIN CAPITALIZATION AND FIRM SIZE MEAN FOR TAX AVOIDANCE?

Abstrak :
Abstract: One of the tax avoidance schemes is converting equity investments into loans either directly or through intermediaries, often referred to thin capitalization. Thin capitalization is where companies make funding through a high level of debt compared to owned capital. Funding through debt (debt financing) looks more attractive to shareholders than funding through capital (equity financing). However, prior research (i.e., Kurniasih and Sari, 2013) suggests that large-scale companies such as wholesellers are more likely to utilize the resources they have, than to use resources from debt. Therefore, the main objective of this study is to determine the effect of thin capitalization on the cash effective tax rate (CETR) among large wholesellers listed inIndonesianStock Exchange (IDX) between 2014 and 2018. Specifically, this research analyses the effect of firm size in strengthening or weakening the relation of thin capitalization to Cash Effective Tax Rate (CETR).This quantitative research utilises purposive sampling technique; with a total samples of 9 wholesellers listed on IDX in the 2014-2018 periode. Thin capitalization is measured using the MAD ratio indicator, and firm size is measured using the natural log of total assets. The results of this study indicate that partially thin capitalization has a significant positive effect on tax avoidance and firm size has a significant negative effect on tax avoidance. Simultaneously thin capitalization, and firm size have a significant effect on tax avoidance. The findings of this research areimportant for companies, especially for large companies like wholesellers, in tax management to ensure that the taxes paid are truly efficient.Keywords: Thin Capitalization, Firm Size, and Tax Avoidance.Cite This Article: Haqi Fadillah,Jenal Abidin, Monang Situmorang, Nur Amalina Mohamad Zaki(2021). What The Thin Capitalization And Firm Size Mean For Tax Avoidance?. TIJARI International Journal of Islamic Economics, Business and Entrepreneurship1(3), 21-37

Tahun : 2021 Media Publikasi : Jurnal Internasional

Kategori : Jurnal No/Vol/Tahun : 3 / 1 / 2021

ISSN/ISBN : -

PTN/S : Universitas Pakuan Program Studi : AKUNTANSI

Bibliography :
REFERENCESAnwar Pohan Chairil. 2016. Optimizing Corporate Tax Management, Edisi Kedua,Jakarta. Bumi Aksara.Anwar Pohan Chairil. 2016. Manajemen Perpajakan Strategi Perencanaan Pajak dan Bisnis, Edisi Revisi,Jakarta. GM.Annisa, N.A., & Kurniasih L (2012), Pengaruh Corporate Governance Terhadap Tax Avoidance.Jurnal Akuntansi & Auditing, 2 (8), 95-18.Erly Suandi (2011), Hukum Pajak,Jakarta: Salemba Empat.

URL : https://tijarijournal.com/index.php/home/article/view/23

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Detail Karya Ilmiah Dosen

HAQI FADILLAH, JENAL ABIDIN, MONANG SITUMORANG, NUR AMALINA MOHAMAD ZAKI

Judul	:	WHAT THE THIN CAPITALIZATION AND FIRM SIZE MEAN FOR TAX AVOIDANCE?
Abstrak	:	Abstract: One of the tax avoidance schemes is converting equity investments into loans either directly or through intermediaries, often referred to thin capitalization. Thin capitalization is where companies make funding through a high level of debt compared to owned capital. Funding through debt (debt financing) looks more attractive to shareholders than funding through capital (equity financing). However, prior research (i.e., Kurniasih and Sari, 2013) suggests that large-scale companies such as wholesellers are more likely to utilize the resources they have, than to use resources from debt. Therefore, the main objective of this study is to determine the effect of thin capitalization on the cash effective tax rate (CETR) among large wholesellers listed inIndonesianStock Exchange (IDX) between 2014 and 2018. Specifically, this research analyses the effect of firm size in strengthening or weakening the relation of thin capitalization to Cash Effective Tax Rate (CETR).This quantitative research utilises purposive sampling technique; with a total samples of 9 wholesellers listed on IDX in the 2014-2018 periode. Thin capitalization is measured using the MAD ratio indicator, and firm size is measured using the natural log of total assets. The results of this study indicate that partially thin capitalization has a significant positive effect on tax avoidance and firm size has a significant negative effect on tax avoidance. Simultaneously thin capitalization, and firm size have a significant effect on tax avoidance. The findings of this research areimportant for companies, especially for large companies like wholesellers, in tax management to ensure that the taxes paid are truly efficient.Keywords: Thin Capitalization, Firm Size, and Tax Avoidance.Cite This Article: Haqi Fadillah,Jenal Abidin, Monang Situmorang, Nur Amalina Mohamad Zaki(2021). What The Thin Capitalization And Firm Size Mean For Tax Avoidance?. TIJARI International Journal of Islamic Economics, Business and Entrepreneurship1(3), 21-37
Tahun	:	2021	Media Publikasi	:	Jurnal Internasional
Kategori	:	Jurnal	No/Vol/Tahun	:	3 / 1 / 2021
ISSN/ISBN	:	-
PTN/S	:	Universitas Pakuan	Program Studi	:	AKUNTANSI
Bibliography	:	REFERENCESAnwar Pohan Chairil. 2016. Optimizing Corporate Tax Management, Edisi Kedua,Jakarta. Bumi Aksara.Anwar Pohan Chairil. 2016. Manajemen Perpajakan Strategi Perencanaan Pajak dan Bisnis, Edisi Revisi,Jakarta. GM.Annisa, N.A., & Kurniasih L (2012), Pengaruh Corporate Governance Terhadap Tax Avoidance.Jurnal Akuntansi & Auditing, 2 (8), 95-18.Erly Suandi (2011), Hukum Pajak,Jakarta: Salemba Empat.
URL	:	https://tijarijournal.com/index.php/home/article/view/23