Abstract

Tax avoidance is an attempt to reduce the tax liability legally (Lawful) by not vioalting any regulations. Tax is considered as a burden which will reduce the net income of the company. As a result, company (as taxpayer) will do everything possible in order to pay the tax as low as possible and even try to avoid it. This is a quantitative study conducted by using secondary data from company financial statements. The study population includes manufacturing companies listed in the Indonesia Stock Exchange. The sampling technique uses purposive sampling. The data is analyzed by using SPSS 16 program by means of Classical Assumption Test, Regression Analysis, t-Test Statistics, F-Test Statistics and Test of Coefficient determination (R2). Test results on the classical assumption of normality test are normal; there is no multicollinearity, heteroscedasticity, and autocorrelation. It means that the linear model meets the requirement to be used to qualify for a statistical test of multiple linear regression model. The findings show that the Risk Taker Executive and Sales Growth significantly influence tax avoidance. Meanwhile, the Institutional ownership, the percentage of independent board, the Number of Board of Commissioners, the Audit Committee, the Audit Quality, Size, Leverage, and Net Operating Loss (NOL) do not influence tax avoidance. Therefore, the findings of the study show that the hypothesis is only partly accepted, the Implementation of risk-taker Executive and Corporate Governance does not fully influence tax avoidance.

Keywords: Risk-Taker Executive, Corporate Governance, Tax Avoidance, Size, Leverage, Sales Growth, Net Operating Loss (NOL).