The Effect of Market Performance, Corporate Governance and Examination of Corporate Taxes with Tax Amnesty as Moderators

Abstract

The purpose of this study is to examine and analyze the effect of market performance, corporate governance, tax audits toward corporate tax, and the role of the tax amnesty in moderating the relationship between market performance, corporate governance, and tax audits toward corporate tax. The unit of analysis is a public company (corporate taxpayers), with a purposive sampling sample of manufacturing industry companies listed on the Indonesia Stock Exchange and meeting the sampling criteria of 52 companies in the 2014-2017 period.The results of the study are that market performance is not proven to have a positive effect on corporate tax, this shows that the higher market performance as measured by Tobin’s Q does not have an impact on corporate tax increases; Corporate governance is not proven to have a positive effect on corporate tax, this shows that the higher corporate governance does not automatically raise corporate taxes; Tax audits have a positive impact on corporate taxes, this indicates that the higher the examination of taxes carried out, the corporation tax will increase; Tax amnesty has not been proven to strengthen the positive influence of market performance, corporate governance and tax audits of corporate taxes. For the sensitivity model with ETR, none of the proposed hypotheses has been proven.