Factors Affecting The Effectiveness Of Corporate Tax Revenue

Abstract

Income tax is a source of state revenue from the taxation sector. The company as tax subjects has contributed the most to state tax revenues. Tax is a burden that can reduce profits for companies, while for the government it is revenue that will be allocated for operational financing. The effectiveness of income tax receipts can be affected by various factors such as tax evasion and tax planning. The research objects used were 48 manufacturing companies from Indonesia Stock Exchange in 2017-2019. The data analysis method used is data pooling test, descriptive statistical test, classic assumption test, multiple linear regression, and hypothesis analysis in the form of F test, t test, and coefficient of determination. The conclusion is that tax avoidance has a negative effect on the effectiveness of the distribution of corporate income tax and tax planning has a negative effect on the effectiveness of corporate income tax.