| Issue |
SHS Web Conf.
Volume 149, 2022
International Conference on Social Science 2022 “Integrating Social Science Innovations on Post Pandemic Through Society 5.0” (ICSS 2022)
|
|
|---|---|---|
| Article Number | 03024 | |
| Number of page(s) | 7 | |
| Section | Social Science | |
| DOI | https://doi.org/10.1051/shsconf/202214903024 | |
| Published online | 18 November 2022 | |
Political and Military Connection, Audit Delay, and Tax Avoidance: An Evidence in Indonesia
1 Faculty of Economics and Business, Universitas Negeri Manado, Indonesia
2 Faculty of Economics and Business, Universitas Negeri Manado, Indonesia
* Corresponding author: frandykarundeng@gmail.com
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.
Key words: Audit Delay / Military Connection / Mining Companies / Political Connection / Tax Avoidance
© The Authors, published by EDP Sciences, 2022
This is an Open Access article distributed under the terms of the Creative Commons Attribution License 4.0, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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