THE EFFECT OF COMPANY SIZE, DEBT LEVEL, AND PROFITABILITY ON TAX AVOIDANCE

Abstract

This research was conducted to obtain empirical evidence about the effect company size, debt level, and profitability on tax avoidance. This research uses quantitative research methods. Quantitative research is a type of research used to examine a particular population or sample, and the tool used to collect data is statistical analysis of quantitative data. This study uses financial reports of mining companies listed on the Indonesia Stock Exchange (BEI) in 2020–2022.. From the results of the analysis tests that have been carried out, it was found that: Research Results Show That Company Size Has No Effect on Tax Avoidance, Based on Total Assets Research Results Show that company size has no significant effect on tax avoidance, indicating that large and small mining companies in Indonesia do not make significant differences in their tax avoidance practices. This study also found that the level of debt, as measured by the Debt to Equity Ratio (DER), affects tax avoidance. Companies with higher levels of debt are reported to engage in more aggressive tax avoidance, possibly because their debt interest is reduced as an incentive to reduce the tax burden. Finally, Profitability, as measured by Return on Assets (ROA), is shown to have a positive effect on tax avoidance. More profitable companies are more likely to engage in tax avoidance, as they have access to resources that can be used to build tax avoidance strategies.