Cooperative Tax: Regulation, Implementation, and Expectation of Legal Avoidance

Cooperatives as one of the economic actors in Indonesia with a total of around 154,000 units, as a business entity legally has the same obligations as other business entities such as tax payments.However, the contribution of cooperatives as taxpayers is still relatively limited.This condition is not only caused by the small scale of the cooperative business but also the understanding of practitioners that cooperatives do not need to pay taxes, especially corporate taxes.The aims of this study to examine the tax regulations, implementation and to determine the cooperative practitioner's expectations of legal tax avoidance.This study uses descriptive research methods.The data needed consists of secondary data from the cooperative financial statements and primary data obtained from the cooperative practitioners.The result of this study indicates that there is no difference in tax regulations for cooperatives and other business entities.The studies on 97 cooperatives sample are still many cooperatives that have avoided with their tax obligations for various reasons.The interesting results of the study showed that the bigger cooperative more compliance to pay corporate tax.The expectation of cooperative practitioners that cooperatives can avoid corporate tax obligations legally, through the consistent implementation of the objectives, principles, and characteristics of cooperatives.