Political and Military Connection, Audit Delay, and Tax Avoidance: An Evidence in Indonesia
Many political elites in Indonesia have strategic position in companies. Uniquely, in Indonesia,there are also military elites hold this position. On the contrary, the level of corruption in Indonesia is still very high, and the tax ratio is also low. Therefore, this study is conducted to determine...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
EDP Sciences
2022-01-01
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| Series: | SHS Web of Conferences |
| Subjects: | |
| Online Access: | https://www.shs-conferences.org/articles/shsconf/pdf/2022/19/shsconf_icss2022_03024.pdf |
| _version_ | 1811219132790603776 |
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| author | Sumual Frida Karundeng Frandy |
| author_facet | Sumual Frida Karundeng Frandy |
| author_sort | Sumual Frida |
| collection | DOAJ |
| description | Many political elites in Indonesia have strategic position in companies. Uniquely, in Indonesia,there are also military elites hold this position. On the contrary, the level of corruption in Indonesia is still very high, and the tax ratio is also low. Therefore, this study is conducted to determine and analyze the effect of political and military connection on tax avoidance in Indonesia. The research was conducted on mining companies listed on the IDX in 2017 – 2019, and the data were analyzed using SmartPLS. The results of this study indicate that political connection has an effect on tax avoidance through audit delay. Top management can intervene in the audit report process to get the expected result. So, the process takes longer time and it indicates the occurrence of tax avoidance efforts. Meanwhile, the military connected company has no effect, because the proportion is relatively small and they have characteristics to comply more with the rules in submitting audit reports. Ultimately, this study is expected to be a valid source of input in making regulations about tax collecting activities. Moreover, it can be taken into consideration in making decisions regarding the proportion of the top management who are connected politically and militarily. |
| first_indexed | 2024-04-12T07:20:13Z |
| format | Article |
| id | doaj.art-2f93026772e940339d1d437c02bd5960 |
| institution | Directory Open Access Journal |
| issn | 2261-2424 |
| language | English |
| last_indexed | 2024-04-12T07:20:13Z |
| publishDate | 2022-01-01 |
| publisher | EDP Sciences |
| record_format | Article |
| series | SHS Web of Conferences |
| spelling | doaj.art-2f93026772e940339d1d437c02bd59602022-12-22T03:42:20ZengEDP SciencesSHS Web of Conferences2261-24242022-01-011490302410.1051/shsconf/202214903024shsconf_icss2022_03024Political and Military Connection, Audit Delay, and Tax Avoidance: An Evidence in IndonesiaSumual Frida0Karundeng Frandy1Faculty of Economics and Business, Universitas Negeri ManadoFaculty of Economics and Business, Universitas Negeri ManadoMany political elites in Indonesia have strategic position in companies. Uniquely, in Indonesia,there are also military elites hold this position. On the contrary, the level of corruption in Indonesia is still very high, and the tax ratio is also low. Therefore, this study is conducted to determine and analyze the effect of political and military connection on tax avoidance in Indonesia. The research was conducted on mining companies listed on the IDX in 2017 – 2019, and the data were analyzed using SmartPLS. The results of this study indicate that political connection has an effect on tax avoidance through audit delay. Top management can intervene in the audit report process to get the expected result. So, the process takes longer time and it indicates the occurrence of tax avoidance efforts. Meanwhile, the military connected company has no effect, because the proportion is relatively small and they have characteristics to comply more with the rules in submitting audit reports. Ultimately, this study is expected to be a valid source of input in making regulations about tax collecting activities. Moreover, it can be taken into consideration in making decisions regarding the proportion of the top management who are connected politically and militarily.https://www.shs-conferences.org/articles/shsconf/pdf/2022/19/shsconf_icss2022_03024.pdfaudit delaymilitary connectionmining companiespolitical connectiontax avoidance |
| spellingShingle | Sumual Frida Karundeng Frandy Political and Military Connection, Audit Delay, and Tax Avoidance: An Evidence in Indonesia SHS Web of Conferences audit delay military connection mining companies political connection tax avoidance |
| title | Political and Military Connection, Audit Delay, and Tax Avoidance: An Evidence in Indonesia |
| title_full | Political and Military Connection, Audit Delay, and Tax Avoidance: An Evidence in Indonesia |
| title_fullStr | Political and Military Connection, Audit Delay, and Tax Avoidance: An Evidence in Indonesia |
| title_full_unstemmed | Political and Military Connection, Audit Delay, and Tax Avoidance: An Evidence in Indonesia |
| title_short | Political and Military Connection, Audit Delay, and Tax Avoidance: An Evidence in Indonesia |
| title_sort | political and military connection audit delay and tax avoidance an evidence in indonesia |
| topic | audit delay military connection mining companies political connection tax avoidance |
| url | https://www.shs-conferences.org/articles/shsconf/pdf/2022/19/shsconf_icss2022_03024.pdf |
| work_keys_str_mv | AT sumualfrida politicalandmilitaryconnectionauditdelayandtaxavoidanceanevidenceinindonesia AT karundengfrandy politicalandmilitaryconnectionauditdelayandtaxavoidanceanevidenceinindonesia |