Willingness of Tax Amnesty Participation Based on Financial Audit Quality

Tax amnesty is an Indonesian government program which company may reveal its hidden asset. By paying redemption money, taxpayer is able to reveal its hidden asset without getting typical administrative sanction of taxation. It turned out that many company hiding its asset participated in this program. That condition raises question regarding audit quality of financial statement of those companies. Audit quality is proxied by accounting firm’s reputation, industry specialization, and tenure. The research shows that accounting firm’s reputation had significant negative impact on participation in tax amnesty program in 2016, 2017, or both, and the amount of restatement regarding tax amnesty program. BIG - 4 accounting firms are associated with better audit quality, consequently, the company which audited by BIG-4 are less likely to participate in tax amnesty. In addition, leverage as control variable had significant negative impact on participation in tax amnesty program.