Sharia Company Tax Aggressiveness on the Jakarta Islamic Index (JII) during the COVID-19 Pandemic
Abstrak
Tax authorities need to look at the factors that drive tax aggressiveness. Moreover, some businesses designated as sharia companies, whose activities should comply with Islamic religious law, engage in tax aggressiveness that does not follow sharia. This study aimed to examine the effect of compensation and corporate social responsibility (CSR) on tax aggresiveness during the COVID-19 pandemic. The COVID-19 pandemic, 2020-2021. The analysis used hypothesis testing with statistical tools and a sample of 55 sharia companies listed on the Jakarta Islamic Index (JII). The compensation variable had no significant effect on tax aggressiveness, while only corporate environmental performance (CEP) was significant regarding the CSR variable. However, these two variables simultaneously have a relationship with tax aggressiveness. This research ran during the pandemic when conditions were not ceteris paribus. Thus, some theories might experience anomalies. The pandemic led to several anomalous theories. Moreover, the sample companies are sharia-based. CSR has three different theories: (1) There is influence, (2) There is no influence, and (3) Influence depends on natural activities. This study supports the third theory, whereby spontaneous activities influence corporate environmental performance (CEP), corporate governance performance (CGP), and corporate social performance (CSP).
Artikel teks lengkap
Referensi
Armstrong, C. S., Blouin, J. L., Jagolinzer, A. D., & Larcker, D. F. (2013). Corporate Governance, Incentives, and Tax Avoidance. SSRN Electronic Journal, 0–42. https://doi.org/10.2139/ssrn.2252682
Authors, F. (2016). Journal of Financial Management of Property and Construction Article information :
Boshkoska, M. (2014). The Agency Problem: Measures for Its Overcoming. International Journal of Business and Management, 10(1), 204–209. https://doi.org/10.5539/ijbm.v10n1p204
Chen, S., Chen, X., Cheng, Q., & Shevlin, T. (2010). Are family firms more tax aggressive than non-family firms? Journal of Financial Economics, 95(1), 41–61. https://doi.org/10.1016/j.jfineco.2009.02.003
Dyreng, S., & Maydew, E. L. (2005). Long-Run Corporate Tax Avoidance. The Accounting Review, 83(1), 61–82.
Fama, E. F., & Jensen, M. C. (2005). Agency Problems and Residual Claims. SSRN Electronic Journal, XXVI(June 1983). https://doi.org/10.2139/ssrn.94032
Ftouhi, K., & Ghardallou, W. (2020). International tax planning techniques: a review of the literature. Journal of Applied Accounting Research, 21(2), 329–343. https://doi.org/10.1108/JAAR-05-2019-0080
Garbarino, C. (2011). Aggressive Tax Strategies and Corporate Tax Governance: An Institutional Approach. SSRN Electronic Journal, 188, 1–18. https://doi.org/10.2139/ssrn.1428772
Goerke, L. (2019). Corporate social responsibility and tax avoidance. Journal of Public Economic Theory, 21(2), 310–331. https://doi.org/10.1111/jpet.12341
Halioui, K., Neifar, S., & Abdelaziz, F. Ben. (2016). Corporate governance, CEO compensation and tax aggressiveness: Evidence from American firms listed on the NASDAQ 100. Review of Accounting and Finance, 15(4), 445–462. https://doi.org/10.1108/RAF-01-2015-0018
Huseynov, F., & Klamm, B. K. (2012). Tax avoidance, tax management and corporate social responsibility. Journal of Corporate Finance, 18(4), 804–827. https://doi.org/10.1016/j.jcorpfin.2012.06.005
Kelliher, C. F. (2014). A tax planning case using a taxpayer life-cycle approach. Advances in Accounting Behavioral Research, 17, 119–160. https://doi.org/10.1108/S1475-148820140000017004
Laguir, I., Staglianò, R., & Elbaz, J. (2015). Does corporate social responsibility affect corporate tax aggressiveness? Journal of Cleaner Production, 107, 662–675. https://doi.org/10.1016/j.jclepro.2015.05.059
Lanis, R., & Richardson, G. (2018). Outside directors, corporate social responsibility performance, and corporate tax aggressiveness: An empirical analysis. Journal of Accounting, Auditing and Finance, 33(2), 228–251. https://doi.org/10.1177/0148558X16654834
Martinez, A. L., & Ramalho, G. C. (2014). Family Firms and Tax Aggressiveness in Brazil. International Business Research, 7(3), 129–136. https://doi.org/10.5539/ibr.v7n3p129
Ortas, E., & Gallego-Álvarez, I. (2020). Bridging the gap between corporate social responsibility performance and tax aggressiveness: The moderating role of national culture. Accounting, Auditing and Accountability Journal, 33(4), 825–855. https://doi.org/10.1108/AAAJ-03-2017-2896
Richardson, G., Taylor, G., & Lanis, R. (2013). The impact of board of director oversight characteristics on corporate tax aggressiveness: An empirical analysis. Journal of Accounting and Public Policy, 32(3), 68–88. https://doi.org/10.1016/j.jaccpubpol.2013.02.004
Sharma, A. K., & Talwar, B. (2005). Corporate social responsibility: Modern vis-à-vis Vedic approach. Measuring Business Excellence, 9(1), 35–45. https://doi.org/10.1108/13683040510588828
Strike, V. M., Gao, J., & Bansal, P. (2006). Being good while being bad: Social responsibility and the international diversification of US firms. Journal of International Business Studies, 37(6), 850–862. https://doi.org/10.1057/palgrave.jibs.8400226
Williams, C., & Fang, L. (2019). A Value-Focused Multiple Participant-Multiple Criteria (MPMC) Decision Support Approach for Public Policy Formulation. Group Decision and Negotiation, 28(1), 99–126. https://doi.org/10.1007/s10726-018-9597-3
Zeng, T. (2019). Relationship between corporate social responsibility and tax avoidance: international evidence. Social Responsibility Journal, 15(2), 244–257. https://doi.org/10.1108/SRJ-03-2018-0056