Analysis Of Fiscal Loss Compensation in Strengthening Factors Affecting Tax Avoidance

DIn tax avoidance, company management often uses ways to reduce the tax burden. This study examines and analyzes the factors influencing tax avoidance (TA). These factors are leverage (DAR) and profitability (ROA). Another objective is to test whether fiscal compensation Loss (FLC) can strengthen the effect of DAR and ROA on ROA. The population is a consumer goods manufacturing company registered on the IDX for 2017-2021. Sample selection Data collection using purposive sampling Based on the existing criteria, 29 companies were selected as a sample with a five-year observation period, so the number of observations was 145. The test carried out was panel data regression analysis. Results This study shows that DAR does not affect TA, ROA affects TA, and DAR and ROA affect TA. FLC is proven to strengthen the impact of DAR on TA. The novelty of this study is to use Fiscal Loss Compensation as a moderating variable, not as an independent variable as in previous studies. The results of this study indicate that investors can use tax avoidance as an essential aspect in making investment decisions in companies because this aspect can measure a company's ability to generate returns on investments made by the company.