Impact of Transfer Pricing, Capital Intensity, Audit Quality, and Financial Distress on Tax Avoidance

M. Tio Riyando; Afrizal  Afrizal; Muhammad Ridwan

doi:10.55227/ijerfa.v4i2.414

Authors

M. Tio Riyando Accounting Study Program, Faculty of Economics and Business, University of Jambi
Afrizal Afrizal Accounting Study Program, Faculty of Economics and Business, University of Jambi
Muhammad Ridwan Accounting Study Program, Faculty of Economics and Business, University of Jambi

DOI:

https://doi.org/10.55227/ijerfa.v4i2.414

Keywords:

Tax Avoidance Transfer Pricing Capital Intensity Audit Quality Financial Distress

Abstract

This study aims to examine the effect of transfer pricing, capital intensity, audit quality, and financial distress on tax avoidance in property and real estate companies listed on the Indonesia Stock Exchange during the period 2021–2023. A quantitative approach was employed using secondary financial data obtained from company reports. Multiple linear regression analysis was conducted to determine both the partial and simultaneous influence of each independent variable on tax avoidance. The results indicate that transfer pricing, audit quality, and financial distress have no significant effect on tax avoidance. Conversely, capital intensity demonstrates a significant negative effect, suggesting that firms with a higher proportion of fixed asset investment tend to engage less in tax avoidance practices. The simultaneous F-test further shows that all independent variables collectively affect tax avoidance. These findings contribute to a deeper understanding of the determinants of tax avoidance within the property and real estate sector and provide implications for policymakers in strengthening tax compliance.

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