The Effect of Corporate Social Responsibility on Mining Company Tax Avoidance

Elok Nusantari, Dicky Chandra Hermawan, Murtanto Murtanto, Aris Rianto Faisal

Abstract


The purpose of this study is to examine the impact of corporate social responsibility (CSR) on corporate tax avoidance. In this study, independent variables were used to assess disclosure of social responsibility, CSR, and the economic and social dimensions of CSR. While tax avoidance is the dependent variable in this study, as evaluated by the size of the effective tax rate. The data collected from the mining sector, which is listed on the Indonesia Stock Exchange from 2015 to 2020. Purposive sampling was used to choose the research sample; it obtains 35 companies per year that match the criteria. The purpose of this study is to determine whether CSR and its Economic and Social Dimensions influence company tax avoidance using multiple linear regression. The findings indicate that the independent variables CSR, CSR Economic dimension, and CSR Social dimension all influence tax avoidance, as measured by the effective tax rate in the mining sub-sector listed on the Indonesia Stock Exchange.


Keywords


CSR; CSR economic dimension; CSR social dimension, tax avoidance

Full Text:

PDF

References


Anggraini, N. D., Hamdi, M., Putri, D., 2018, Pengaruh Transfer Pricing, Kualitas Audit Dan Corporate Social Responsibility Terhadap Penghindaran Pajak (Studi Empiris Pada Perusahaan Manufaktur Yang Terdaftar Di Bursa Efek Indonesia Periode 2012-2016), Jurnal Fakultas Ekonomi, Vol 13 No 1.

Adams, C. A., Hill, W. Y., and Roberts, C. B., 1998. Corporate Social Reporting Practices in Western Europe: Legitimating Corporate Behaviour. The British Accounting Review, 30(1), 1 – 21

Allingham, M., Sandmo, A., 1972. Income tax evasion. Journal of Public Economics 1, 323-338

Andi Pujianto., 2012. Website: http://www.akuntansipendidik.com/2011/07/skripsi-dengan- analisis-regresi-linear.html. (diakses 19.04.17

Behringer, K., & Krisztina, S., 2016. The Role Of CSR In Achieving Sustainable Development – Theoretical Approach, European Scientific Journal, Vol 12 No 22, 10–25.

Bambang Riyanto, 1995, Dasar-dasar pembelanjaan perusahaan, Edisi keempat, Yogyakarta, Yayasan Penerbit Gajah Mada.

Bansal, P., 2005. Evolving sustainably: a longitudinal study of corporate sustainable development. Strateg. Manag. J. 26 (3), 197e218

Bayoud N. S., Kavanagh M., dan Slaughter G., 2012. Factors influencing levels of corporate social responsibility disclosure by Libyan firms: A mixed study. International Journal of Economics and Finance, 4, 13-29.

Boatright, R., 2003. Ethics and the conduct of business. Pearson Education International, New York.

Branco, M.C.,dan Rodrigues, L.L., 2008. Factors influencing social responsibility disclosure by Portuguese companies. Journal of Business Ethics, 83(4), 685-701

Carroll, A., 1979. A three-dimensional conceptual model of corporate performance. Academy of Management Review 4, 497-505.

Carroll, R., Joulfaian, D., 2005. Taxes and corporate giving to charity. Public Finance Review 33, 300-317.

Chen, S., Chen, X., Cheng, Q., Shevlin, T., 2010. Are family firms more tax aggressive than nonfamily firms? Journal of Financial Economics 95, 41-61.

Davis, Angela K., Guenther, David A., Krull, Linda K., & Williams, Brian M. (2013). Taxes and Corporate Accountability Reporting: Is Paying Taxes Viewed As Socially Responsible: Working Paper, Lundquist College of Buisness, University of Oregon.

Dharma, N. B. S., & Noviari, N., 2017, Pengaruh Corporate Social Responsibility dan Capital Intensity terhadap Tax Avoidance, E-Jurnal Akuntansi Universitas Udayana, Vol 18 No 1, 529-556.

Deegan, C., and Unerman, J., 2011. Finanical accounting theory, McGraw-Hill, Sydney.

Deegan, C., 2013. Financial accounting theory, 4th edition, McGraw Hill Book Company, Sydney.

Desai, M., Dyck, A., Zingales, L., 2007. Theft and taxes. Journal of Financial Economics 84, 591- 623.

Deshpande, R., Webster F., Jr., 1989. Organizational culture and marketing: defining the research agenda. The Journal of Marketing 53, 3-15.

Dyah Hayu Pradipta Supriyadi. 2015. Universitas Gadjah Mada. http://lib.ibs.ac.id/materi/SNA%20XVIII/makalah/123.pdf. Diakses (26.04.17).

Dyreng, S.D., Hanlon, M., Maydew, E.L., 2008. Long-run corporate tax avoidance. Acc. Rev. 83 (1), 61e82

Dudi Wahyudi, 2015. Pengaruh Aktivitas Corporate Social Responsibility terhadap Penghindaran Pajak di Indonesia. Proceeding Pertemuan Ilmiah Tahunan (PIT) nasional ke-2, Ikatan Widyaiswara Indonesia (IWI) Provinsi Banten.

European Commission, 2003. Responsible Entrepreneurship: a Collection of Good Practice Cases Among Small and Medium Sized Enterprises across Europe. Available Online: http://ec.europa.eu/enterprise/policies/sustainablebusiness/files/responsible_entrepreneurshi p/doc/resp_entrep_en.pdf (diakses 08.02.17)

Fakultas Ekonomi Universitas Diponegoro. 2011. Buku Penuntun Penulisan Usulan Penelitian, Skripsi, dan Mekanisme Pengujian. Denpasar

Freeman, R., Reed, D., 1983. Stockholders and stakeholders: a new perspective in corporate governance. California Management Review 25, 88-106.

Ghozali, Imam., 2018. Aplikasi Analisis Multivariate dengan Program IBM SPSS 25. Badan Penerbit Universitas Diponegoro, Semarang.

Gujarati, Damodar, 2003, Ekonometri Dasar. Terjemahan: Sumarno Zain, Jakarta: Erlangga

Gupta, S., Newberry, K., 1997. Determinants of the variability in corporate effective tax rates: evidence from longitudinal data. J. Acc. Public Pol. 16, 1e34.

Hanafi, Mamduh dan Abdul Halim. 2003. Analisis Laporan Keuangan. Edisi Revisi. Yogyakarta: UPP AMP YKPN.

Hanlon, M., Heitzman, S., 2010. A review of tax research. Journal of Accounting and Economics 50, 127-178.

Hanlon, M., Slemrod, J., 2009. What does tax aggressiveness signal? evidence from stock price reactions to news about tax shelter involvement. Journal of Public Economics 93, 126-141.

Hadiansyah, P., 2015, Direksi AAG resmi tersangka. Diakses tanggal 2 Oktober 2019 dari http://www.bbc.co.uk/indonesian/news/story/2007/11/071108_taxfraud.shtml

Hendayana, Y. et.al. (2021). How Perception use of e-Filling Technology Enhance Knowledge of Indonesian Disability Taxpayers and Impact Tax Compliance. Budapest International Research and Critics Institute-Journal (BIRCI-Journal) Vol 4 (2): 1687-1696.

Hendrik Budi Untung, Corporate Social Responsbility, Sinar Grafika, Jakarta, 2008.

Hoi, C., Wu, Q., Zhang, H., 2013. Is corporate social responsibility (CSR) associated with tax avoidance? evidence from irresponsible CSR activities. The Accounting Review 88, 2025- 2059.

Holme dan Watts. 2006. Dalam Hadi, Nor. (2011). Corporate Social Responsibility. Yogyakarta. Graha Ilmu

Huseynov, Farriz dan Bonnie K. Klamm. 2012. Tax avoidance, Tax Management and Corporate Social Responsibility. Journal of Corporate Finance, 18(6): 804-827.

Idzni, N. I., & Purwanto, A., 2017, Pengaruh Ketertarikan Investor Asing dan Kepemilikan Institusional terhadap Penghindaran Pajak Perusahaan, Jurnal Akuntansi, Vol 6 No 1, 1-12. ISSN : 2337-3806.

Ilyas, W. B., & Suhartono, R., 2018, Perpajakan: Pembahasan Lengkap Berdasarkan Perundang-Undangan dan Aturan Pelaksanaan Terbaru (Edisi 3), Badan Penerbit Mitra Wacana Media, Jakarta.

Jos Van Renselaar. 2016. The influence of corporate social responsibility on the level of corporate tax avoidance. Business and Economics. Uppsala University.

Kaptein, M., Wempe, J., 2002. The balanced company: A theory of corporate integrity. Oxford University Press, Oxford, UK.

Kiroyan, Noke (2006), “Good Corporate Governance (GCG) dan Corporate Social Responsibility (CSR) Adakah Kaitan di Antara Keduanya?”, Economics Business Accounting Review, Edisi III, September-Desember 2006, Hal. 45-58.

Kytle, B., Hamilton, B.A., and Ruggie, J.G., 2005. Corporate social responsibility as risk management: A model for multinationals. Social Responsibility Initiative Working Paper. Cambridge, MA.

Laguir, I., Stagliano, R., Elbaz, J., 2015. Does corporate social responsibility affect corporate tax aggressiveness? Journal of Cleaner Production 107, 662-675.

Lanis, R., Richardson, G., (2007). Determinants of the variability in corporate effective tax rates and tax reform: Evidence from Australia. Journal of Accounting and Public Policy 26 (2007) 689–704.

Lanis, R., Richardson, G., 2011. The effect of board of director composition on corporate tax aggressiveness. J. Acc. Public Pol. 30 (1), 50e70.

Lanis, R., Richardson, G., 2012. Corporate social responsibility and tax aggressiveness: An empirical analysis. Journal of Accounting and Public Policy 31, 86-108.

Luthfy, B. G., 2019. Pengaruh Struktur Kepemilikan Terhadap Tax Avoidance (Studi Empiris pada Perusahaan Manufaktur yang Terdaftar di BEI pada tahun 2013- 2017). Penelitian Universitas Islam Indonesia, Yogyakarta.

Lutfia, A., & Pratomo, D., 2018, Pengaruh Transfer Pricing, Kepemilikan Institusional, dan Komisaris Independen terhadap Tax Avoidance (Studi pada Perusahaan Manufaktur yang terdaftar di Bursa Efek Indonesia Tahun 2012 – 2016), e- Proceeding of Management, Vol 5 No 2.

Mayangsari, V. R., 2015, Analisis Faktor-Faktor yang Mempengaruhi Penghindaran Pajak Perusahaan yang Terdaftar di Bursa Efek Indonesia. Skripsi Fakultas Ekonomi dan Bisnis. Penelitian Universitas Diponegoro, Semarang.

Maharani Ika Lestari dan Totok Sugiharto . 2007. Kinerja Bank Devisa dan Bank Non Devisa dan Faktor-faktor yang Mempengaruhinya, Jurnal Proceeding PESAT. Vol 2,Agustus 2007.

Maignan, I., Ralston, D.A., 2002. Corporate social responsibility in Europe and the U.S.: Insights from businesses' self-presentations. Journal of International Business Studies, 33(3), 497-514.

Margolis, J. D., dan Walsh, J. P., 2003. Misery loves companies: Rethinking social initiatives by business. Administrative science quarterly, 48(2), 268-305.

Marpaung, A. (2020). Zakat Regulation as a Reduction of Income Tax in Indonesia. Budapest International Research and Critics Institute-Journal (BIRCI-Journal) Vol 3 (3): 2109-2116.

McIntyre, R., Gardner, M., Wilkins, R., Phillips, R., 2011. Corporate tax payers and corporate tax dodgers 2008-10. A joint project of Citizens for Tax Justice and the Institute on Taxation and Economic Policy, Washington D.C.

McWilliams, A., Siegel, D., 2001. Corporate social responsibility: a theory of the firm perspective. Academy of Management Review 26, 117-127.

Mehafdi, M., 2000. The ethics of international transfer pricing. Journal of Business Ethics 28, 365- 381.

Moser, D., Martin, P., 2012. A broader perspective on corporate social responsibility research in accounting. The Accounting Review 87, 797-806.

O‟Donovan, G., 2002. Environmental disclosures in the annual report: Extending the applicability and predictive power of legitimacy theory. Accounting, Auditing and Accountability Journal, 15(3), 344–371.

O‟Dwyer, B., 2003. Conceptions of corporate social responsibility: The nature of managerial Capture. Accounting, Auditing and Accountability Journal, 16(4), 523-557.

Poewanto, Corporate Social Responsibility, Pustaka pelajar, Yogyakarta, 2010.

Porcano, T. (1986) Corporate Tax Rates: Progressive, Proportional or Regressive. Journal of the American Taxation Association, 7, 17-31.

Preuss, L., 2010. Tax avoidance and corporate social responsibility: you can't do both, or can you? Corporate Governance: The international journal of business in society 10, 365-374.

Purwanggono, 2015, Pengaruh CSR dan Kepemilikan Mayoritas Perusahaan Pada Perusahaan Manufaktur Terhadap Agresivitas Pajak. Skripsi Fakultas Ekonomi dan Bisnis. Penelitian Universitas Diponogoro, Semarang

Rego, S., 2003. Tax‐avoidance activities of US multinational corporations. Contemporary Accounting Research 20, 805-833.

Ribando, J., Bonne, G., 2010. A new quality factor: finding alpha with ASSET4 ESG data.

Roberts, R. W., 1992. Determinants of corporate social responsibility disclosure: An application of stakeholder theory. Accounting, Organisations and Society, 17(6), 595- 612. Ross, S. A., 1977. The determination of financial structure: The incentive signalling Approach, Bell Journal of Economics, 8 (1), 23 – 40.

Thomson Reuters. Retrieved on December 22, 2015 from http://thomsonreuters.com/content/dam/openweb/documents/pdf/tr-com financial/report/ starmine-quant-research-note-on-asset4-data.pdf.

Universitas Sumatera Utara. repository.usu.ac.id/bitstream/123456789/50108/4/Chapter%20II.pdf (diakses 20.4.17)

Savage, G.T., Nix, T.W., Whitehead, C.J., and Blair, J.D., 1991. Strategies for assessing and managing organizational stakeholders. Academy of Management Executive, 5(2), 61-75.

Sayekti, Yosefa, Wondabio,Ludovicus Sensi. 2007. “Pengruh CSR Disclosure terhadap Earning Response, Simposium Nasional Akuntansi unhas, makasar 26-28 juli 2007) AKPM 08.

Sandra, M. Y. D., & Anwar, A. S. H., 2018. Pengaruh Corporate Social Responsibility dan Capital Intensity terhadap Penghindaran Pajak (Studi Empiris pada Perusahaan Pertambangan yang Terdaftar di BEI), Jurnal Akademi Akuntansi, Vol 1 No 1.

Shobirin, M. Noval, 2012, “Pengaruh Corporate Social Responsibility (CSR) terhadap Kinerja

Siregar, R., Nasution, I.R., and Arifin, M.A. (2019). The Effect of Corporate Taxpayer Compliance, the Increase of Corporate Taxpayers' Number and Tax Audits on Income Tax Receipts of Article 25 with Taxation Sanctions as a Moderating Variable in KPP Pratama Medan Petisah. Budapest International Research and Critics Institute-Journal (BIRCI-Journal) Vol 2 (4): 385-400.

Pasar Modal”, Jurnal Akuntansi Universitas Udayana 1.

Setiabudi, W. A., 2017, Rasio Pajak Optimal dan Tingkat Pertumbuhan Ekonomi Di Indonesia. Diakses tanggal 5 Oktober 2019 dari https://www.kemenkeu.go.id/media/11213/buku-informasi-apbn-2016.pdf

Sikka, P., 2010. Smoke and mirrors: corporate social responsibility and tax avoidance. Accounting Forum 34, 153-168

Van Marrewijk, M., 2003. Concepts and definitions of CSR and corporate sustainability: between agency and communion. Journal of Business Ethics 44, 95-105.

Maretta Yoehana. 2013. Analisis Pengaruh Corporate Social Responsibility terhadap Agresivitas Pajak. Universitas Diponegoro

Watson, L., 2011. Corporate social responsibility and tax aggressiveness: an examination of unrecognized tax benefits. Unpublished working paper. Pennsylvania State University, Pennsylvania.

Wearing, R., 2005. Cases in corporate governance. London. SAGE Publications.

Wicks, A. C., Freeman, R. E., and Parmar. B., 2004. Stakeholder theory and the corporate objective revisited. Organization Science, 15(3), 364-369.

Undang-Undang Republik Indonesia No.8 Tahun 1995 tentang Pasar Modal. Undang-Undang Republik Indonesia No.40 Tahun 2007 tentang Perseroan Terbatas. Zimmerman, J., 1983. Taxes and firm size. J. Acc. Econ. 5 (2), 119e149




DOI: https://doi.org/10.33258/birci.v5i1.3956

Article Metrics

Abstract view : 182 times
PDF - 83 times

Refbacks

  • There are currently no refbacks.


Creative Commons License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

 

Creative Commons License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.