Tax Disclosure in Financial Statements: The Case of Indonesia
Arie Pratama () and
Azzallia Putri Pratiwi ()
International Journal of Applied Economics, Finance and Accounting, 2022, vol. 14, issue 1, 50-59
Tax disclosure has long been of concern to the public. Corporations provide tax disclosure as part of their financial reporting, whether on a voluntary or mandatory basis. However, the level of tax disclosure is still problematic due to the secrecy aspect of taxation. This research was undertaken to better understand the effects of tax avoidance, good corporate governance, industry regulation, and participation in tax amnesty on corporate tax disclosure. This research used data from 422 public Indonesian companies that had published financial statements in the year 2019. The data were analysed using multiple linear regression. The results reveal a negative relationship between tax avoidance and tax disclosure, with lower tax avoidance leading to higher tax disclosure; a positive relationship between both good corporate governance and tax amnesty and tax disclosure, with better corporate governance and tax amnesty leading to higher tax disclosure; and a negative relationship between industrial regulations and tax disclosure, with increased industrial regulations leading to lower corporate tax disclosure. Overall, this research shows that tax disclosure not only reveals tax activities but also reflects the company’s views on tax compliance.
Keywords: Tax disclosure; Tax avoidance; Good corporate governance; Industry regulation; Tax amnesty. (search for similar items in EconPapers)
References: Add references at CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:oap:ijaefa:v:14:y:2022:i:1:p:50-59:id:648
Access Statistics for this article
More articles in International Journal of Applied Economics, Finance and Accounting from Online Academic Press
Bibliographic data for series maintained by Heather Rothman ().