The Effect of Liquidity and Capital Intensity on Tax Aggressiveness

Abstract

Aims: This research aims to determine and analyze the effect of liquidity and capital intensity on tax aggressiveness. Study Design: The population in this study are Basic Industry and Chemical sub-sector manufacturing companies listed on the Indonesia Stock Exchange in the 2020-2022 period, namely 66 companies. The sampling method was purposive sampling. The final sample in this research was 22 companies and the total final sample was 66 samples. The data used is secondary data taken from the financial statements obtained from the Indonesian Stock Exchange. Methodology: The data collection method is document analysis. The data analysis method used is quantitative analysis. The analysis techniques in this research are the classical assumption test, determinant coefficient test and Multiple Linear Regression. Results: The results of this research show that liquidity influences tax aggressiveness, capital intensity influences tax aggressiveness. Conclusion: The research results show that liquidity, capital intensity simultaneously affect tax aggressiveness. liquidity has a positive and significant effect on tax aggressiveness. Meaning that Companies with high liquidity are healthy companies with large tax liabilities so they have a higher potential for aggressive tax action. so does Capital Intensity has a positive and significant effect on Tax Aggressiveness. Meaning that higher fixed asset investment is carried out as a form of reducing profits and increasing depreciation expenses, thereby reducing the tax burden