Factors That Affect Tax Aggressiveness With Good Corporate Governance As A Moderating Variable

The main source of tax revenue is personal income tax. Increasing a company's taxable income has a direct impact on the amount of profit it can make. This creates an incentive for companies to adopt aggressive tax strategies. Companies that adopt aggressive tax strategies can reduce tax revenues for the government. The purpose of this study is to examine the effect of managerial character, political connections and firm size on tax aggressiveness, and to examine the effect of competent corporate governance as a moderating factor. To assess audit quality as a measure of corporate governance effectiveness. This study uses a sample of manufacturing companies listed on the Indonesia Stock Exchange (IDX) during the period 2019 to 2021. The purposive sampling method was used to select a sample of 48 companies. This study uses a data analysis method that combines multiple linear regression analysis and moderated regression analysis (MRA) and IBM SPSS software version 26. Empirical evidence shows that managerial characteristics and firm size have a significant and positive impact on the level of tax aggression. However, managerial attainment and political affiliation have no significant impact on the propensity to engage in aggressive tax strategies. The impact of effective corporate governance on the moderating effect of audit quality in the relationship between managerial personality and firm size on tax aggressiveness is demonstrated. However, audit quality has no moderating effect on the relationship between executive income and political connections on tax aggressiveness.