Efek Moderasi Controlled Foreign Corporation Pada Pengaruh Intensitas Modal, Profitabilitas, dan Koneksi Politik Terhadap Penghindaran Pajak

Abstract

This research objective is to examine the influence of capital intensity, profitabil- ity, and political connectivity on tax avoidance and the role of Controlled For- eign Corporations (CFC) as a moderator. The study using quantitative method. Research samples were determined using the purposive sampling method. Data analysis using Moderated Regression Analysis. The results show that capital intensity and political connectivity partially have a positive and significant effect on tax avoidance. While profitability partially has a negative and signifi- cant effect on tax avoidance. Controlled Foreign Corporation moderates the relationship between capital intensity, profitability, and political connectivity with tax avoidance. Companies that have high net assets tend to do tax avoid- ance, this is because the company's cash is reinvested in fixed assets. Companies with low profits tend to do tax avoidance compared to companies that experience high profits. Furthermore, the existence of political connections leads to high tax avoidance legally. CFC moderates the relationship between capital intensity, profitability, and political connectivity to tax avoidance. The more dominant foreign ownership will put pressure on the board of directors and management to do tax avoidance.