Tax Aggressiveness in Transfer Pricing and Corporate Business Strategy
DOI:
https://doi.org/10.56456/jebdeker.v6i1.904Keywords:
Tax Aggressiveness, Transfer Pricing, Business StrategyAbstract
This study examines taxation in Indonesia, where taxes are a key source of funding and a driver of economic growth. Tax revenue in Indonesia remains among the lowest in ASEAN, and low tax compliance and informal employment are among the main challenges. This study observes 36 mining company samples with a total of 118 firm-year research data, using panel data analysis and purposive sampling for data collection, as well as EViews 12 software as an analytical tool. The findings show that transfer pricing has a negative effect on tax aggressiveness, and business strategy measured by the market-to-book ratio has a negative effect on tax aggressiveness. Meanwhile, business strategy measured by fixed asset intensity has a positive effect on tax avoidance. Thus, this study provides implications for corporate governance practices and existing tax regulations in Indonesia.
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