The effect of corporate social responsibility and capital intensity on tax aggressiveness

Abstract

The goal of this article is to compile data on the correlation between tax compliance on the part of businesses and tax avoidance on the part of businesses. In this study, non-financial businesses listed on the Indonesia Stock Exchange (IDX) for the years 2018 through 2021 were used in an effort to get reliable information about tax aggressiveness activities that can be influenced by CSR and capital intensity. Purposive sampling was used in this study's secondary data sources from IDX to gather high-quality data. The criteria used to select the companies for data collection are those with an ETR value between 0 and 1, those with complete annual reports, and those that disclose CSR. According to the study's findings, CSR will have a negative impact on tax aggressiveness, and if there is greater CSR disclosure, there will be less tax aggressiveness. Contrarily, the CAPINT component demonstrates that CAPINT has no impact on Tax Aggressiveness because the researcher finds negative values for the CAPINT variable in the organization. As a result, it can be said that CAPINT does not appear to have an impact on Tax Aggressiveness. The study's shortcomings include the use of the ETR proxy as the sole indicator of tax aggressiveness and the exclusion of CSR and CAPINT, two variables that will have an impact on tax aggressiveness. Researchers are advised to compare the CSR and CAPINT variables and add or utilize other measuring instruments to determine the degree of tax aggressiveness.