Profitability, Firm Size And Tax Avoidance

Abstract

Tax is a source of income for the state. To prove empirically the relationship between profitability, the moderating role of firm size on tax avoidance is the goal of this study. We use 196 observational data from financial sector companies in Indonesia. Observational data was obtained from 2019 to 2021. The selection of samples was in accordance with established criteria in order to obtain selective results. WarpPLS version 7.0 is used as a data analysis tool. The research findings show that profitability has an effect on tax avoidance, besides that firm size has a role in strengthening the relationship between profitability and tax avoidance. The implication of this research is the importance of tax planning for companies.