Effect of Profitability and Operational Costs on Tax Avoidance (Case Study on Company in the Consumer Goods Industry Sector Listed on the Indonesia Stock Exchange for the Period of 2016-2019)

Abstract

One of the obstacles in order to optimize tax revenue is tax avoidance. Tax avoidance aims to minimize the tax burden by utilizing taxation provisions legally by minimizing tax obligations. The higher the level of profitability, the better the performance and condition of the company in generating profits, the less likely the company is to do tax avoidance. This study aims to analyze the effects of profitability and operational costs on tax avoidance. The method used in this research is quantitative using multiple linear regression analysis techniques. The samples in this study were 80 company in the consumer goods industry sector which are listed on the Indonesia Stock Exchange (BEI) for the period 2016-2019. The research results show that profitability and operational costs have an effect on tax avoidance.