PENGARUH CORPORATE GOVERNANCE DAN PROFITABILITAS TERHADAP TAX AVOIDANCE (Studi Empiris Terhadap Perusahaan Sektor Pertanian Yang Terdaftar Di Bursa Efek Indonesia Periode 2014-2018)

Abstract

Reza Ganda Castara 022116163. The Effect of Corporate Governance and Profitability on Tax Avoidance (Empirical Study of Agricultural Sector Companies Listed on the Indonesia Stock Exchange 2014-2018 Period). Under the guidance of the supervisory commission of Buntoro Heri Prasetyo and Wiwik Budianti, in 2020. The definition of tax in Law Number 28 of 2007 Article 1 paragraph 1 is a mandatory contribution to the state owed by an individual or entity that is coercive under the law, without getting direct compensation and being used for the needs of the state for the greatest prosperity of the people. Tax is a burden for companies that can reduce a company's net profit, so generally companies will make various efforts to reduce the tax burden that must be paid both legally and illegally. In recent years the phenomenon of the practice of tax evasion has led to several cases in accounting reporting that are widely known. This indicates that good corporate governance has not been implemented substantively and consistently, which opens up opportunities to present incorrect information. The purpose of this study was to determine the effect of corporate governance and profitability on tax avoidance in agricultural sector companies listed on the BEI. This research was conducted on agricultural sector companies listed on the Indonesia Stock Exchange for the 2015-2018 period. The sample used in this study were 8 companies. The sample was selected using purposive sampling method. The type of research used in this research is verification with the Explanatory Survey research method which intends to explain the variables studied and the influence between one variable and another. The data were tested using SPSS version 23 using the classical assumption test method and multiple linear analysis. Based on the results of the study, it can be seen that hypothesis 1 Corporate Governance has a positive effect on tax avoidance is rejected, Hypothesis 2 Profitability has a positive effect on tax avoidance is accepted but in a negative direction, and Hypothesis 3 Corporate Governance and Profitability together have a positive effect on tax avoidance is accepted.