THE IMPACT OF PROFITABILITY, LEVERAGE AND SALES GROWTH TOWARD TAX AVOIDANCE

Abstract

The objective of this research is to analyze the impact of profitability, leverage, and sales growth toward tax avoidance of food and beverages companies listed on the Indonesia Stock Exchange for the period 2020 - 2022. The independent variables used in this research are profitability, which is measured by Return on Assets (ROA), leverage measured by Debt to Equity (DER), and sales growth measured the calculation of total revenue. The dependent variable used in this research is tax avoidance, which is measured by Effective Tax Rate (ETR). The result of this research reveals that profitability (ROA) has an insignificant negative impact partially on tax avoidance, leverage (DER) has an insignificant positive impact partially on tax avoidance, and sales growth has a significant negative impact on tax avoidance partially.

Keywords: Tax Avoidance, Effective Tax Rate, Return on Assets, Debt to Equity Ratio, Sales Growth