The Influence of Ownership Structure, Leverage, Profitability, Company Size, and Audit Quality on Tax Avoidance in Indonesia

Abstract

Taxes are one of the most dominant revenues in the APBN. However, the fact is that the tax potential is not being utilized properly. It is due to the low level of the tax ratio in Indonesia compared to other ASEAN countries. The low level of the tax ratio is due to the prevalence of tax evasion and even tax evasion. This study aimed to analyze the effect of government ownership, family, institutional, foreign, leverage, profitability, firm size, and audit quality on tax avoidance. The method used in this study is the Partial Significant Test (T-Test). The results of this study are government and institutional ownership structure have a positive effect on tax avoidance. Meanwhile, family, foreign ownership structure, company leverage, profitability, company size, and audit quality do not affect tax avoidance.