The Role of Audit Committee Characteristics in Tax Planning

Alfita Rakhmayani (), Maya Aresteria, Deddy Sulestiyono and Body Avivya Faraintika
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Alfita Rakhmayani: Diponegoro University
Maya Aresteria: Diponegoro University
Deddy Sulestiyono: Diponegoro University
Body Avivya Faraintika: Diponegoro University

A chapter in Proceedings of the 8th International Conference on Business, Economics, Social Sciences, and Humanities - Economics, Business and Management Track (ICOBEST-EBM 2025), 2025, pp 42-50 from Springer

Abstract: Abstract Notably, an overly aggressive tax planning strategy undertaken by a company increases the likelihood of encountering unprecedented risks. In conjunction with scrutinizing financial statements, the Audit Committee assumes responsibility for ensuring compliance with applicable accounting regulations and standards, including taxation guidelines. This investigation endeavours to examine the impact of committee composition and meeting frequency on the tax planning strategies pursued by companies. A multiple regression analysis was employed in testing the hypotheses. The research sample comprised 75 Indonesian companies listed on the Indonesian Stock Exchange in 2023 that satisfied the established criteria. The findings of this study indicate that the configuration of committee membership and the frequency of meetings do not exert any significant influence on the tax planning initiatives undertaken by the surveyed firms. Consequently, it appears that the Audit Committee does not yield a sufficient influence on the companies’ tax planning strategies.

Keywords: Effective Tax Rate; Audit Committee; Supervision; Tax Planning (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-795-3_5

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DOI: 10.2991/978-94-6463-795-3_5

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