The Impact of International Financial Reporting Standards ( IFRS ) Against Tax Avoidance : Case Study in Indonesia

Abstract

The purpose of this study was to analyze the behavior of tax avoidance before and after the application of International Financial Reporting Standards (IFRS). The Population in this research is manufacturing companies listed in Indonesia Stock Exchange in 2007 and 2012. Selected in 2007 as a sample prior to the IFRS and the 2012 samples after the IFRS. The sampling technique used is purposive sampling and obtained 70 samples from the company. The analytical tool used is Paired Sample Test. Tax avoidance in this study proxied using four measurements is Cash Effective Tax Rate (CETR), Books Tax Gap (BTG), General Accepted Accounting Principle Affective Tax Rate (GAAP ETR), Current Effective Tax Rate (Current ETR). Before analyzed, then tested for normality for each - each a proxy measurement of the resulting 45 samples for measurement CETR, 35 samples for the measurement of BTG, 56 samples for measurement GAAP ETR, and 58 samples for measurements Current ETR. The practical implication of the research suggests the government to make a policy to reduce ability tax avoidance.