Company Size and Profitability Against Tax Avoidance in Coal Sector Mining Companies Listed on the IDX in 2018-2021

Abstract

Purpose: The purpose of this research is to analyze the relationship between company size and profitability and tax avoidance by coal mining firms.    Theoretical framework: Tax avoidance is a type of tax planning that has two sides: on the one hand, it is legal, but on the other, it is undesirable because it reduces government revenue.   Design/methodology/approach: The population of this quantitative study, which makes use of secondary data, consists of businesses from the coal mining sector that are listed on the Indonesia Stock Exchange between 2018 and 2021. Purposive sampling according to these criteria yielded a sample of 12 businesses for this analysis.   Findings: With the use of the SPPS Version 26 software, data is analyzed using descriptive analysis and verification analysis, such as the classical assumption test, multiple linear regression analysis, coefficient of determination analysis, and hypothesis testing. This research shows that company size and profitability significantly affect tax avoidance, either independently or together.   Research, Practical & Social implications: We propose a future study agenda centered on the ability to propose a research time frame and sample size in the hopes of maximizing the expected findings. To achieve more accurate data processing, you can also use different processes and data learning methods.   Originality/value: Previously, researchers found factors that determine tax avoidance. However, comprehensive information regarding the impact on tax evasion in Indonesia is lacking. This reinforces the robustness of our research.