THE EFFECT OF THIN CAPITALIZATION AND ASSETS MIX AGAINST TAX AVOIDANCE IN COMPANIES REGISTERED JAKARTA ISLAMIC INDEX (JII) 70

Abstract

The purpose of this research is to examine and analyze the effect of capitalization and assets mix on tax avoidance. This study uses secondary data in the form of annual reports of companies listed on the Jakarta Islamic Index (JII) for the period 2020 to 2022. A purposive sampling technique is used as a sampling technique with a total of 126 sample data. The analytical method used is multiple linear regression analysis using Eviews 12 Student Version software. This study obtains the following results: (a) thin capitalization does not affect tax avoidance; (b) capital intensity has a positive effect on tax avoidance; (c) inventory intensity does not affect tax avoidance.