The Effects of Financial Distress, Audit Committee, and Independent Commissioners on Tax Avoidance
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Tax Avoidance is a company's effort to minimize its tax burden by utilizing tax regulations within the legal framework. This practice is a concern because it can affect state revenues and reflect financial policies and corporate governance. This study aims to analyze the influence of Financial Distress, Audit Committees, and Independent Commissioners on Tax Avoidance, proxied by CETR, in transportation and logistics companies listed on the Indonesia Stock Exchange for the 2022–2025 period, with Firm Size and Leverage as control variables. The study used secondary data with a purposive sampling method, resulting in a sample of 23 companies with a total of 92 observations. Data analysis was performed using panel data regression with E-Views 13 software. The selection of the best model through the Chow Test, Hausman Test, and Lagrange Multiplier Test indicated that the Random Effect Model (REM) was the most appropriate model. The partial test results showed that Financial Distress had a significant effect on Tax Avoidance, while the Audit Committee and Independent Commissioners did not have a significant effect on Tax Avoidance. The findings of this study indicate that tax avoidance practices in transportation and logistics companies are more influenced by the company's financial condition than by Good Corporate Governance mechanisms, as proxied by the Audit Committee and Independent Commissioners. The results of this study are expected to serve as a reference for company management, investors, and regulators in understanding the factors influencing tax avoidance practices and supporting more effective decision making regarding tax policy and corporate governance.
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