Minimizing Tax Avoidance By Using Conservatism Accounting Through Book Tax Differences (Case Study In Indonesia)

Heni Purwantini


The research’s first purpose is to analyze directly conservatism accounting influence towards book tax differences and tax avoidance. The second purpose is to analyze indirect influence of towards tax avoidance through book tax differences. The research is conducted to companies enlisted in Indonesian Stock Exchange and belongs to LQ45 during 2013 to 2015. The number of companies sample taken by purposive sampling is 23 corporations, therefore total observation is 69 observations. The acquired data analysed by path analysis. This research conclude that conservatism accounting practice significantly influence book tax difference practice but did not influence tax avoidance. Conservatism accounting practice is also has no influence towards tax avoidance committed by book tax differences. This book tax difference is only significantly influential to commit tax avoidance. This research can contribute in taxation field as input in tax planning formulation.



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International Journal of Research in Business and Social Science (2147-4478) by Umit Hacioglu is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
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