Volume 7, Issue 8, August – 2022 International Journal of Innovative Science and Research Technology

ISSN No:-2456-2165

The Effect of Profitability, Company Size, and Sales

Growth on Tax Avoidance with Leverage as a
Moderating Variable
Perik Apriatna¹, Lin Oktris²
Department of Accounting, Mercu Buana University, Department of Accounting, Mercu Buana University,
Jakarta, Indonesia Jakarta, Indonesia

Abstract:- Tax avoidance is an effort to avoid taxes that is Based on the Achievement of the Performance Report
carried out in a legal way or does not violate laws and of the Directorate General of Taxes, it can be seen that the
regulations because for taxpayers, taxes are seen as a percentage of tax revenue achievement is inconsistent. It can
burden that will reduce profits or income. Taxpayers who be seen that in 2018 the achievement ratio was 92.23% an
carry out tax avoidance are not in accordance with the increase of 2.56% from the achievement ratio in 2017
expectations of society, because this tax is managed by the (89.67%), but in 2019 it experienced a considerable decrease
government to be returned indirectly to the taxpayer in of 7.79% so that the achievement in 2019 became 84.44%
the form of welfare of life. This study aims to from 92.23% (achievement in 2018) (Source:
examineandanalyze the effect of profitability, company www.pajak.go.id (LAKIN DGT 2019)). The decrease in the
size, and sales growth on tax avoidance with leverage as a tax ratio figure can be used as an indicator that tax revenue
coding variable. The design of this study used a causality has decreased and shows the government's ability to collect
and sel research design used in this study was selected by tax revenue from taxpayers is not optimal.
researchers using the purposive sampling method.
Secondary data as much as 36 samples of companies listed Taxes are a source of income for the state, while for
on the Indonesia Stock Exchange (IDX) in 2017-2019. companies taxes are an expense that will reduce net profit.
The statistical method used to test the research hypothesis The difference in interests from fiscus who want large and
is multiple linear regression analysis with the help of SPSS continuous tax revenues is certainly contrary to the interests
25.0 software. The resultsshowed that the of companies that want the minimum possible tax payment
independentvariables of profitability, company size, sales (Handayani, 2018). This is what causes many of the public
growth and leverage had no significant effect on tax and even companies to do tax avoidance.
avoidance and the leverage moderation variable could
not moderate independent variables against dependent Tax avoidance is one way to avoid taxes legally that do
variables. not violate tax regulations. This tax avoidance can be said to
be a complicated and unique problem because on the one
Keywords:- Tax Avoidance, Profitability, Company Size, hand it is allowed, but it is not desirable (Jamaludin, 2020).
Sales Growth,Leverage.
The phenomenon of differences in interests between
I. INTRODUCTION taxpayers and the government and the average tax ratio that
has not reached the target may indicate a large enough tax
A country can it goes well if it has a source of income avoidance activity, so that Indonesia's state tax revenues are
that can be managed and used to increase the growth and still not optimal (Handayani, 2018). It can be seen in several
development rate of the country itself. In order to finance the cases of tax avoidance, one of which is as reported by the
implementation of national development, the government government through the Directorate General of Taxes (DGT)
continues to try to increase domestic sources of income. One exploring the alleged tax avoidance carried out by the coal
of the sources of state income is taxes. Tax is a sector that company PT Adaro Energy Tbk which is a large coal mining
plays an important role in the economy, because in the receipt company in Indonesia that received the title of golden
of the State Budget (APBN) tax contributions have a larger taxpayer from the Director General of Taxes. Adaro utilizes
portion compared to other sources of revenue (non-tax). a transfer pricing scheme through its Singapore subsidiary to
avoid taxes in Indonesia. According to a Global Witness
Taxes come from contributions imposed on taxpayers report titled Taxing Times for Adaro, Adaro is reported to
who are covered and regulated in the Tax Law. These dues have diverted profits from coal mined in Indonesia by
are managed by the government to be returned indirectly to diverting more funds through countries with lower tax rates.
the taxpayer in the form of welfare of life. Because taxes are This is to avoid taxes in Indonesia. Adaro may have reduced
one of the important aspects in the process of a country, the indonesia's tax bill and the money available to the Indonesian
government will always strive for every taxpayer to carry out government for essential public services by nearly USD 14
his obligations in paying taxes. million per year. The case shows the tax avoidance carried
out by the company by utilizing a transfer pricing strategy
(Nurrahmi, 2020).

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Three giant US technology companies such as Google, reduce the company's profits. Tax avoidance is different from
Facebook, and Microsoft are carrying out tax avoidance tax evasion, where tax evasion is related to reducing or
practices. Reported by The Guardian, research conducted by eliminating the tax burden by using means that violate the law
ActionAid International shows that these companies take (Barli, 2018). Tax avoidance is closely related to companies
advantage of the loopholes in the global tax system to avoid that want to maximize company profits. Taxes are an element
taxes. Its value reaches USD2.8 billion or equivalent to RP41 of profit reduction that is detrimental to every company, but
trillion per year (Nurhaliza, 2020). on the other hand taxes are a major contribution to the State
(Hidayat, 2018).
The phenomenon of tax avoidance continues to
increase, thus attracting the attention of both academics and Measurement of tax avoidance can be done in different
policymakers to conduct research on what are the factors that ways. In a study conducted by Aronmwan & Okafor (2019)
affect taxpayers in carrying out tax avoidance activities with the title "CORPORATE TAX AVOIDANCE: REVIEW
(Nurrahmi, 2020). OF MEASURES AND PROSPECTS" that the measurement of
tax avoidance can be done using the ETR (Effective Tax
 Formulaic problem: Rate), BTD (Book- Tax Difference), "Henry and Sansing's
1. Does profitability affect tax avoidance? Measure", UTB (Unrecognized Tax Benefit), and Tax Shelter
2. Does the size of the company affect tax avoidance? Score methods.
3. Does sales growth affect tax avoidance?
4. Does leverage affect tax avoidance? C. Profitability
5. Can leverage moderate profitability against tax Each companyhas different goals, but it is undeniable
avoidance? that creating profits is the main goal of the company. The
6. Can leverage moderate a company's size against tax nature of this company is called profitability. The company's
avoidance? ability to create profits for the foreseeable future, can be one
7. Can leverage moderate sales growth against tax of the indicators of the company's success in operating all the
avoidance? wealth owned by the company called Profitability according
to (Dayanara, Titisari, & Wijayanti, 2019) in research
II. LITERATURE REVIEW conducted by Panggabean and Hutabarat (2020).

A. Agency Theory To measure profitability can use 2 types of ratios . The

Agency theory states the contractual relationship type used to identify the relationship between profitability
between the agent (management of a business) and the and sales can use net profit margin and gross profit margin.
principal (business owner). The agent performs certain duties While the type used to identify the relationship between
for the principal, the principal has an obligation to reward the profitability and investment can use ROA and ROE
agent. Jensen and Mecling (1976) stated that an agency (according to Curry & Budianti, 2018 in a study conducted
relationship as a contract between one or several persons by Panggabean and Hutabarat, 2020).
(employers or principals) who employ others (agents) to
perform a number of services and give authority in decision Return on Assets (ROA) is a ratio that will be used to be
making (Handayani, 2018; Jamaludin, 2020). Agency theory an indicator of profitability measurement in this study. ROA
states that there is an asymmetry of information between is useful for measuring the extent of a company's
managers (agents) and shareholders (principals) because effectiveness in utilizing all the resources it has (according to
managers are more aware of internal information and Siahaan, 2004 in a study conducted by Handayani, 2018).
company prospects in the future than shareholders and other
stakeholders (Handayani, 2018). D. Company Size
Company size is a scale or company value that can be
The difference in interests between the principal and the classified as small based on total assets, log size, stock value,
agent often poses a moral hazard risk, which is when and so on. Companies that are grouped into large sizes
someone in this case is the management /agent takes more (having large assets) will tend to be more capable and more
risk because another person (principal) will bear the cost of stable to generate profits when compared to companies with
these risks. There can be situations where principals will small total assets (Rachmawati and Triatmoko, 2007:21 in
sacrifice resources in the form of compensation to agents so research conducted by Wardani and Khoiriyah, 2018). Large
that they can improve performance and efficiency in paying and stable profits will tend to encourage companies to carry
company taxes. The difference in interests between the fiscus out tax avoidance practices because large profits will cause a
and the company based on the agency theory will cause non- large tax burden as well. This condition causes an increase in
compliance carried out by the taxpayer or the company's the amount of tax burden, thus encouraging companies to
management which will have an impact on the company's carry out tax avoidance practices (Dewinta and Setiawan,
efforts to carry out tax avoidance (Barli, 2018). 2016: 1594 in research conducted by Wardani and Khoiriyah,
2018).
B. Tax Avoidance
Tax avoidance is an effort to avoid taxes that is carried The relationship between the size of the company and
out in a legal way or does not violate laws and regulations tax avoidance, where companies that have large assets will
because for companies taxes are seen as a burden that will definitely incur large burdens as well, one of which is the tax

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Volume 7, Issue 8, August – 2022 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
burden. The company will reduce all expenses with the aim III. RESEARCH METHODS
of financial efficiency (Moeljono, 2020).
The design of this study uses a causality research design.
E. Sales Growth The samples used in this study were selected by researchers
Sales growth reflects the success of past investment using the purposive sampling method. The secondary data
periods and can be used as a prediction of future growth used in this study is the annual report data of companies
(Hidayat, 2018). listed on the Indonesia Stock Exchange for the period 201 7-
2019. The company's annual report data is taken
A company that has high growth must provide sufficient (downloaded) through the Indonesia Stock Exchange website
capital to finance the company's performance. The growth in www.idx.co.id.
rate basically reflects the company's productivity and is an
expectation desired by both internal parties (management) Hypothesis testing was carried out using a multiple
and external parties. However, on the other hand, the linear regression analysis model of panel data aimed at
company's growth can show an increase in the company's predicting the strength of influence of independent variables
financial performance (Murkana and Putra, 2020). on dependent variables. In this analysis method, using
statistical package for social sciences (SPSS) 25.0 software.
F. Leverage
According to Cashmere (2016:151) in a study conducted NO INFORMATION SUM
by Jamaludin (2020) defining a solvency ratio or leverage 1 Mining companies listed on the Indonesia
ratio is: "The ratio used to measure the extent to which a Stock Exchange in the period 2017-2019 42
company's assets are financed with debt. That is, how much 2 Mining companies listed on the Indonesia
debt burden is borne by the company compared to its assets. Stock Exchange do not present financial -
In a broad sense it is said that the solvency ratio is used to statements in the period 2017-2019
measure a company's ability to finance all of its liabilities, 3 Mining companies listed on the Indonesia
both short-term and long-term if the company is dissolved Stock Exchange and do not use dollar ( 22)
(liquidation)." (USD) currency in the 2017-2019 period
4 Mining companies listed on the Indonesia
The relationship between leverage and tax avoidance Stock Exchange and did not have a ( 2)
practicesis that the company uses outside funding (Debt) with positive profit in the period 2017-2019
the aim of achieving an optimal capital structure. In static Total company 18
theory, funding decisions are based on an optimal capital 5 Data Outlier ( 6)
structure, by balancing the benefits of tax savings on the use Total companies that can be sampled 12
of debt against bankruptcy costs (according to Myers and
Observation period 2017-2019 3
Majluf, 1984 in research conducted by Moeljono, 2020).
Total sampleable data 36
Table 1 Research Samples
G. Corporate Governance
Source : Secondary data processed
Corporate governance is corporate governance that
explains the relationship between various participants in the
 Operationalization of Variables
company that determines the direction of company
According to Chandrarin (2017), variabel is defined as
performance (Haruman, 2008 inresearch conducted by Sari
something or anything that has value and can be measured,
and Somoprawiro, 2020).
both tangible and intangible. Variables must be clearly
definable both conceptually and operationally, in other
Corporate governance arises to provide confidence and
words, variables must be measurable (if something cannot be
confidence to investors that the funds they invest in the
measured then it cannot be called a variable).
company are used appropriately and efficiently and the
company's goals can be achieved, namely increasing
In this study, the variables used were as follows:
shareholder wealth and increasing company value (Sari and
Somoprawiro, 2020).
1. Variabel Dipendent (bound)
The dipendent (bound) variable is the main variable that
 Hypothesis:
is the attraction or focus of the researcher (chandrarin, 2017).
The Hipotesis in this study are:
In this study, the bound variabel was symbolized by huruf
H1= Profitability affectsTax Avoidance.
"Y". The bound variable in this study is tax avoidance.
H2= Company Size with Hto Tax Avoidance.
H3= Influential Sales Growth Tax Avoidance.
2. Independent (free) variables.
H4= Leverage affects Tax Avoidance.
Independent (free) variables are variables that are
H5= Leverage moderates Profitability to Tax Avoidance.
thought to affect dipendent variables (Chandrarin, 2017). In
H6= Leverage Moderating Size Company against Avoidance
this study, the free variable was symbolized by the letter "X".
Tax
Variabel free in this study is profitability, compny size and
H7= Leverage Moderates Growth Sales against Tax
sales growth.
Avoidance.

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3. Moderating Variable of defusing/suppressing/minimizing errors that exist and may
Moderating variables are variables that in a position can arise in the research process. Errors in question, for example
strengthen or weaken the relationship between independent errors in determining/designing models (misspesification of
and dependent variables that have been normalized in the models) data entry or analysis errors and other similar errors.
research model (chandrarin, 2017). In this study, the coding The control variable was included in the research model but
variabel was symbolized by the letter "X". The coding was not hypothesized because it was not the main
variable in this study is leverage. independent variable chosen to be tested for its effect on the
dependent variable (chandrarin, 2017). The control variable
4. Vriabel Control in this study is the executive tenur.
The control variable is an additional independent
variable that is included in the regression model with the aim

Table 2 Variable Operational Definition

Measurement
No. Variable Definition Dimension Indicators
(Scale)
1 Tax Avoidance Legal ways to minimize the tax burden but still CETR Payment of Ratio
( Moeljono, 2020 ) within the limits of applicable regulations, by (Cash Profit Tax
means of tax planning (tax management). Effective Before Tax
Tax Rate)
2 Profitability The company's ability to make a profit in relation ROA Net Profit Ratio
( Hidayat, 2018 ) to sales, total assets and own capital. (Return On Total Assets
Asset)
3 Company Size A scale that describes the size of a company LN (Natural Total Assets Ratio
( Puspita, & which is indicated by total assets, number of Logarithm)
Febrianti, 2017 ) sales, average total sales and average total assets.
4 Sales Growth Indicators of demand and competitiveness of Sales Sales.t – Ratio
( Hidayat, 2018 ) enterprises in an industry. Growth (Sales.t-1)
Sales t-1
5 Leverage ( Dewi., The level of capital support of the company DER (Debt Total Ratio
& Noviari, 2017 ) obtained from outside parties of the company. to Equity Liability
Ratio) Total Equity
Source : Processed data

IV. RESULTS Table 3 Descriptive Statistics (Include Outlier Data)

Descriptive Statistics
A. Descriptive Statistical Analysis Results Std.
Descriptive statistics are used toprovide an overview of N Minimum Maximum Mean
Deviation
the variables under study, including the average value (mean, CETR 54 -4,858 4,264 0,378 0,955
minimum value, maximum value, and standard deviation) in Roa 54 0,001 0,456 0,103 0,110
testing and explaining the characteristics of the observed
SIZE 54 11,821 15,792 13,714 1,055
sample. The variables used in this study are tax avoidance
(CETR) as a dependent variable, independent variables are Sg 54 -0,257 63,020 1,636 8,583
profitability (ROA), company size (SIZE), sales growth (SG), Lev 54 0,310 11,909 1,762 2,004
moderation variables are leverage (LEV), and control Te 54 1,000 3,000 1,796 0,810
variables are tenure executive (TE). Valid N
54
(listwise)
The results of the descriptive statistical test there are Source : Data Processed With SPSS 25
standard deviation results with a value of more than ≥ 2.5 may
not be distributed normally because it has an extreme value Based on the results of statistical tests in table 4.3, there
(data outlier). According to Hair (1998) in Ghozali (2018) are std results. Deviation with a value of ≥ 2.5 which is 8,583
for small sample cases (less than 80) then the standard score so that it is likely not to be distributed normally because it has
with a value of ≥ 2.5 is declared outlier. The results of the an extreme value (data outlier). Outlier data detection is
descriptive statistical test before issuing outlier data against performed with z-score (converting data values into
samples in this study are as follows: standardized scores). The results of the descriptive statistical
test after issuing outlier data in this study are the following:

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Table 4 Descriptive Statistics (Exclude Outlier Data)
Descriptive Statistics
N Minimum Maximum Mean Std. Deviation
CETR 36 0.0900 1,4900 0.4364 0,3199
Roa 36 0.0000 0.3600 0.0950 0.0823
SIZE 36 11,8200 15,7900 13,5506 1,0694
Sg 36 -0.1500 1,2700 0,2267 0.3042
Lev 36 0.3100 4,3400 1,1781 0.9041
Te 36 1,0000 3,0000 1,7778 0,7968
Valid N (listwise) 36
Source : Data Processed With SPSS 25

Based on the results of the descriptive statistical test 1355.06%, this average value indicates that the size of the
according to tabel 4 above with a total sample of 36 obtained company is categorized into large-scale companies (Total
data as follows: Assets > Rp. 10,000,000,000,- in mutmainah study, 2020).

a. Variable Tax Avoidance (Y) projected Cash Effective Tax d. Variable Sales Growth (X3) Projected Sales Growth (SG)
Rate (CETR) The minimum value with a value of -0.1500 or -15.00%
The minimum value is 0.0900 or 9.00%, and the and the largest value with a value of 1.2700 or 127.00%. The
maximum value is 1.4900 or 149.00%. The results of this average value of descriptive statistical results was 0.2267 or
descriptive statistic have an average value (mean) of 0.4364 22.67%. With the average value of the company's sales
or 43.64%, so it can be concluded that in this study the growth variable in this study, it provides a description that
company pays taxes in cash from profit before tax with an sales growth has increased with an average value of 0.2267
average value of 43.64%. or 22.67% compared to the previous year,

b. Variable Profitability (X1) Projected Return on Asset e. The Variable Leverage (X4) and also is as a Moderation
(ROA) Variable projected with a Debt to Equity Ratio (DER)
The minimum value is 0.00% and the largest value is The lowest value with a value of 0.3100 31.00% and the
36.00%. And the average value (mean) is 0.0950 or 9.50% largest value with a value of 4.3400 or 434.00%. Meanwhile,
which means that the companies in this study have an average the average descriptive statistical result for the Leverage
net profit value of 9.50% of the company's total assets. variable is 1.1781 or 117.81%, which describes that the
company's total debt in this study has an average value of
c. Company Size Variable (X2) projected Natural Logarithm 117.81% of the company's total equity .
(LN)
The minimum value is 11.8200 or 1182.00% and the f. Control Variable Tenure Executive (TE)
largest value is 15.7900 or 1579.00%. The average value Theminimum value is 1.0000 or 100.00% and the
(mean) for the company size variable is 13.5506 or maximum value is 3.0000 or 300.00%.

Estimation Model (Assumption) Assumption 1 Assumption 2 Assumption 3 Assumption 4 Assumption 5

Value
R2 0,240 0,384 0,281 0,542 1,000
F test 1,899 0,740 1,321 0,996 -
Sig_F 0,124 0,726 0,275 0,509 -
D Watson 1,484 1,790 1,559 2,542 3,126
Sig.t ROA 0,734 0,854 0,631 0,944 -
Sig.t SIZE 0,010 0,588 0,011 0,637 -
Sig.t SG 0,498 0,825 0,560 0,888 -
Sig.t Lev 0,573 0,763 0,513 0,909 -
Sig.t TE 0,077 0,212 0,394 0,985 -
Source : Data Processed With SPSS 25

Five assumptions of approach methods that can be 3. Assume a constant slope, but the intercept varies for each
used in panel data with SPSS, namely as follows: time
1. Assume intercept and constant slope coefficient all the 4. Asume a constant slope, but the intercept varies for each
time individual and time
2. Assume a constant slope, but the intercept varies for each 5. Assume all coefficients (both intercept and slope
individual coefficients) vary for each individual and tim.

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Based on the data from the assumption test results, it can the leverage (LEV) against the tax avoidance variable
be concluded that the 3rd assumption is better with an R2 (CETR).
value of 0.281 and Durbin Watson of 1.559 is enshrined g) The leverage-moderated sales growth (SG) variable
withassumptions 1, 2, 4 and assumptions 5. (LEV) has a calculated t value of -1.208 and is smaller
than the table t of 1.70329. It can then be concluded that
 Multiple linear analysis with Panel Data (Assumption-3) the sales growth variable (SG) cannot moderate the
a) TheN value of the constant is 0.414 and the posit valueis leverage (LEV) against the tax avoidance variable
if, meaning that if the independent variable is considered (CETR).
constant, then the value of the tax avoidance (CETR) is
0.414. C. Interaction Moderation Test
b) The regression coefficient for the profitability variable
(ROA) of 0.012 and positive value indicates that any  Sub-Group Analysis
change in 1 unit of profitability (ROA) can increase the By comparing the value of R² for observation with a
tax avoidance variable (CETR) by 0.012 assuming that mean above 1.178 has an R² value of 0.323 and for
other independent variables in regression are fixed. observation with a mean below 1.178 it has an indigo R² of
c) The regression coefficient for the company size variable 0.296. So it can be concluded that there is no type of
(SIZE) of0.0 05 and positive value indicates that any moderator Homologizer because it is found that the influence
change in 1 unit of company size (SIZE) can increase the of the moderator variable on the independent variable on the
tax avoidance variable (CETR) by 0.005 assuming that dependent variable with a mean above 1.178 is stronger than
other independent variables in the regression are fixed. the dependent variable with a mean below 1.178.
d) The regression coefficient for the sales growth variable
(SG) of 0.004 and negative value indicates that any  Moderated Regression Analysis (MRA)
change in 1 unit of sales growth (SG) can decrease an tax Based onthe results of the first, second and third presses,
avoidance variable (CETR) by 0.004 assuming that other that the values of R² are 0.239 (first equation), 0240 (second
independent variables in the regression are fixed. equation) and 0.378 (third equation). So it can be concluded
e) The regression coefficient for the leverage variable (LEV) that leverage is a pure variable of moderators.
of 0.001 and the nega tif valueindicates that any change in
1 unit of leverage (LEV) can collapsethe tax avoidance V. DISCUSSION
variable (CETR) of 0.001 assuming that the other
independent variables in the regression are fixed. A. The effect of profitability on tax avoidance.
The test results in the first hypothesis of the effect of
B. T-test (partial regression coefficient test) profitability on tax avoidance have a significance value (sig.)
According to the results of the statistical test T, it can be of 0.773 and according to the results of the t test that the
concluded as follows: calculated value of 0.291 is less than 1.70329 (t table). . Then
a) The profitability variable (ROA) has a calculated value of the result can be concluded that profitability has no effect on
0.291 and this value is smaller than 1.70329 (t table). The tax avoidance.
profitability variable (ROA) has no effect on the tax
avoidance variable (CETR). The higher the profit (profit) of a company, the company
b) The company size variable (SIZE) has a calculated t value will be able to pay taxes in accordance with applicable
of 0.821 but is smaller than the table t of 1.70329, so it regulations. And this is not in line with agency theory (Jensen
can be concluded that the company size variable (SIZE) and Mecling. 1976) regarding the difference in interests
has no effect on the tax avoidance variable (CETR). between agents and principals.
c) The sales growth variable (SG) has a calculated t value of
0.728 but is smaller than the table t of 1.70329,. So it can B. The effect of the size of the enterprise on tax avoidance.
be concluded that the sales growth variable (SG) has no The test results on the second hypothesis of the effect of
effect on the tax avoidance variable (CETR). company size on taxation have a calculated t value of 0.821
d) The leverage variable (LEV) has a calculated t value of but are smaller than t table by 1.70329 and have a significance
1.109 but is smaller than the table t of 1.70329. So it can value (sig.) of 0.419. So it can be concluded that the size of
be concluded that the leverage variable (LEV) has no the company has no effect on tax avoidance. The size of a
effect on the tax avoidance variable (CETR). large company will comply with applicable regulations, along
e) The variable profitability (ROA) moderated leverage with high awareness and the company does not want to take
(LEV) has a calculated t value of -1.717 and is smaller risks and is bothered by the tax inspection process which will
than the table t of 1.70329. Then it can be concluded that adversely affect the company's image.
the profitability variable (ROA) cannot moderate the
leverage (LEV) against the tax avoidance variable C. The effect of sales growth on tax avoidance.
(CETR). In the third hypothesis, the test results of the effect of
f) The variable size of the company (SIZE) moderated growth on tax avoidance have a calculated t value of 0.728
leverage (LEV) has a calculated value of -1.004 and is but smaller than the table t of 1.70329 and a significance
smaller than the table t of 1.70329. So it can be concluded value (sig.) of 0.473. So it can be concluded that the variable
that the company size variable (SIZE) cannot moderate of sales growth has no effect onthe ap variable of tax
avoidance.

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A company with increased and stable sales growth, will VI. CONCLUSIONS AND SUGGESTIONS
make the company not worry (able) to pay taxes in
accordance with applicable regulations and this is not in line A. Conclusion
with the agency's theory (Jensen and Mecling, 1976) Based on the problem formulation, hypothesis testing,
regarding the difference in interests between the agent and the and discussion that has been described in the previous
principal. chapters, it can be concluded as follows:
1. Profitability (ROA) has no effect on tax avoidance
D. The effect of leverage on tax avoidance. (CETR).
The test on the fourth hypothesis of the effect of The results of this study are in line with the high CETR value,
leverage on tax avoidance has a calculated t value of 1.109 the lower it is to carry out tax avoidance.
but smaller than the table t of 1.70329 and avalue of 0.277. 2. The size of the company (SIZE) has no effect on tax
Then it can be concluded that the leverage variable has no avoidance (CETR).
effect on the tax avoidance variable. The utilization of debt The results of this study are contrary to the tendency of large-
management will get an optimal capital structure in the scale companies and large profits in reducing costs by
company, so that the company must be able to manage its debt carrying out tax avoidance practices.
management so that the company's operations can run 3. Salesgrowth (SG) has no effect on tax avoidance (CETR)
smoothly and the expected returns compared to the equity The results of this study have a high significance so that sales
value are higher. So that debt has no influence on tax growth does not affect tax avoidance due to stable and
avoidance. increasing sales growth.
4. Leverage (LEV) has no effect on tax avoidance (CETR)
E. The effect of leverage on profitability on tax avoidance. The results of this study show that the higher the level of
The test results in the fifth hypothesis of the effect of company leverage, the smaller the tendency to do tax
leverage on profitability on tax avoidance have a calculated t avoidance.
value of -1.717 and are smaller than the table t of 1.70329 and 5. Leverage (LEV) cannot moderate profitability against
have a significance value (sig.) of 0.97. Then the leverage paja k avoidance(CETR)
variable cannot moderate the profitability variable against tax 6. Leverage (LEV) cannot moderate a company's size
avoidance. against tax avoidance (CETR)
7. Leverage (LEV) cannot moderate sales growth against tax
The greater the debt / leverage, the smaller the taxable avoidance (CETR).
profit will be because the tax incentives on debt interest are
greater. So from the test results of this moderating , leverage B. Suggestion
is not able to moderate the effect of profitability on tax Based on the conclusions and peneliti realized that there
avoidance. are still many shortcomings. So the researcher gave some
suggestions for the next study, namely as follows:
F. The effect of leverage on the size of the company on tax 1. Based on the results of this study, it is hoped that the next
avoidance. research can increase the company's sample and increase
The test results in the sixth hypothesis of the effect of the observation period. So that the results can contribute
leverage on company size on tax avoidance have a calculated optimally.
t value of -1.004 less than t table of 1.70329 and have avalue 2. In this study, it has high significance value test results. So
of 0.324. So it can be concluded that the leverage variable that the next researcher can add variables that can affect
cannot moderate the company size variable against tax tax avoidance so that it can increase contributions to
avoidance. With an increase in leverage that can reduce profit research and strengthen existing research results.
before tax and increase the size of a company, the company
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ISSN No:-2456-2165
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