THE INFLUENCE OF CAPITAL INTENSITY AND FISCAL LOSS COMPENSATION ON TAX AVOIDANCE (STUDY OF FOOD AND BEVERAGES COMPANIES LISTED ON THE INDONESIA STOCK EXCHANGE FROM 2010-2015)

Abstract

Taxes are a compulsory contribution for taxpayers for States that are forcing under the Act,
not receiving direct feedback, and as much as possible for the welfare of the people. Taxes are
one factor that can reduce earnings of taxpayers. In relation to taxes, companies want to
maximize the value of the company by generating maximum profits while governments want
to maximize tax revenue from the taxation sector of the state. To maximize profits, companies
may engage in tax avoidance practices. The goal of this study was to analyze the effect of
capital intensity and fiscal loss compensation on tax avoidance. Food and beverages companies
listed on the Indonesia Stock Exchange (BEI) between 2010-2015 represent the study
population. All data were analyzed using panel data regression analysis. The results showed
that capital intensity and fiscal loss compensation simultaneously affected tax avoidance.
Capital intensity significantly encouraged tax avoidance practices, while fiscal loss
compensation had no significant impact on tax avoidance.