Political Connection Moderate Effect of Tax Haven Utilization and Corporate Governance on Tax Aggressiveness

Gunawan Wibisono; Sekar Mayangsari

Authors

Gunawan Wibisono Faculty of Economics and Business Universitas Trisakti Jakarta, Indonesia
Sekar Mayangsari Faculty of Economics and Business, Universitas Trisakti Jakarta

Keywords:

Keywords: tax haven utilization, corporate governance, political connections and tax aggressiveness

Abstract

This research has great relevance in the scope of tax policy, corporate governance, and accountability and has a central role in encouraging improvements in tax practices. This research examines the influence of tax haven utilization and corporate governance on tax aggressiveness by mediating political connections in manufacturing companies listed on the Indonesia Stock Exchange. This research uses quantitative data, and the type of data researchers use is secondary data. The population in this research is 168 manufacturing companies registered on the IDX during the 2019-2022 period. Sampling was conducted using purposive sampling, and a sample of 144 companies was obtained. Data management in this research uses the Structural Equation Model (SEM) through the intelligent PLS computer program or application. The empirical findings show that tax haven utilization does not affect political connections and tax aggressiveness, while corporate governance directly influences tax aggressiveness and political relations. Political connections mediate the relationship between corporate governance and tax aggressiveness.

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