Tax Avoidance : Does Fixed Asset Intensity and Company Size Make a Different ?

Abstract

The background of this study is the existence of different interests in terms of taxation. Especially business entities as taxpayers make taxation a burden that reduces company profits. While the government makes tax the largest source of income for the country. However, most business entities try to avoid paying taxes which is called tax avoidance practices. The emergence of Islamic banks will make competition even tighter. Islamic banks will compete to make as much money as possible. However, the amount of profit obtained by Islamic banks will certainly result in an increase in the amount of tax that must be paid, so Islamic banks try to do tax avoidance. Islamic banks with high fixed asset intensity reflect that Islamic banks make large investments in fixed assets. Company size shows how big or small a company is based on its total assets. The purpose of this study is to test how much influence the intensity of fixed assets and company size have on tax avoidance at Islamic Commercial Banks registered with the OJK during the 2018-2022 period. This type of research is quantitative research using secondary data from the annual report of Islamic Commercial Banks. In selecting the sample using purposive sampling technique and obtained 7 Islamic Commercial Banks with a total of 35 samples. The method used in this study is the panel data regression analysis method with the Common Effect model. The results of the study indicate that partially (t-test) fixed asset intensity does not affect tax avoidance, while company size has a significant positive effect on tax avoidance. And the results of the study indicate that simultaneously (f-test) fixed asset intensity and company size do not affect tax avoidance.