THE MODERATING ROLE of SUSTAINABILITY REPORT ON GOOD CORPORATE GOVERNANCE AND TAX AVOIDANCE

Sari Mujiani; Efrinal; Kamilah Sa’diah; Elan Kurniawan

Sari Mujiani Department of Accounting , As-Syafiiyah Islamic University, Jakarta
Efrinal Department of Accounting , As-Syafiiyah Islamic University, Jakarta
Kamilah Sa’diah Department of Accounting, Bina Niaga University, Bogor
Elan Kurniawan Department of Accounting , As-Syafiiyah Islamic University, Jakarta

Keywords: Tax Avoidance, Corporate Governance, Sustainability Report

Abstract

The employment of appropriate measures for regulating the tax expense is critical. The industry can avoid tax cases that have a negative influence on the sector in the future by employing appropriate procedures for regulating the tax expense. The company's strategy is based on the effective tax rate. The goal of this research was to look into the moderating role of sustainability reports in influencing good corporate governance and tax avoidance. The goal of this research was to look into the moderating role of sustainability reports in influencing good corporate governance and tax avoidance. The firms in the mining sector that were listed on the Indonesia Stock Exchange from 2015 to 2019 were used in this study. Purposive sampling was the method adopted in this study. Eviews9 is a method for analyzing data. The results of the analysis show that institutional ownership and independent board of commissioners have a negative impact on tax avoidance. This suggests that the two supervisors' roles in the organization can help to limit managerial behavior when it comes to tax avoidance. The audit committee has no impact on tax evasion. As a moderator, the sustainability report has a negative impact on institutional ownership and independent commissioners with regard to tax avoidance. That the company discloses its sustainability report and the high role of institutional ownership will be able to reduce tax avoidance actions in the company. Meanwhile, the sustainability report has been unable to serve as a moderator for the audit committee on tax avoidance.