Income Shifting Strategy as a Reaction of Corporate Tax Rate Reduction and the Role of Auditors

DOI

10.2991/assehr.k.210424.057How to use a DOI?

Keywords

income shifting, book-tax differences, leverage, audit quality

Abstract

This research aims to investigate income shifting strategy carried out by the company as a reaction to the corporate income tax rate decrease. It is conducted by the Indonesian government from 25 % to 22 % in 2020. Furthermore, this study also investigates the influence of audit quality upon the income shifting strategy. In contrast to existing research, this study used the book-tax difference approach to measure of income shifting. By using a sample of 51 public companies listed on the Indonesia Stock Exchange, the following results obtained: First, in 2019 the company performed income shifting in response to a decrease in corporate tax rates. Secondly, auditor quality gave a negative effect on income shifting.

Copyright

© 2021, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Sabar Warsini Wijoyo
PY  - 2021
DA  - 2021/04/26
TI  - Income Shifting Strategy as a Reaction of Corporate Tax Rate Reduction and the Role of Auditors
BT  - Proceedings of the International Conference on Applied Science and Technology on Social Science (ICAST-SS 2020)
PB  - Atlantis Press
SP  - 295
EP  - 298
SN  - 2352-5398
UR  - https://doi.org/10.2991/assehr.k.210424.057
DO  - 10.2991/assehr.k.210424.057
ID  - Wijoyo2021
ER  -