An In-Depth Examination of The Factors Influencing Tax Avoidance in Indonesia’s Primary Consumer Sector: A Case Study of Key Determinants

Since businesses are the primary source of money for a country, they tend to decrease their earnings in response to taxes, which in turn fosters tax avoidance. This study aims to determine and explore the variables that affect tax avoidance in the primary consumer sector in Indonesia. Capital structure, capital intensity ratio, sales growth, inventory intensity, and transfer pricing are a few variables that influence tax avoidance. This inquiry uses quantitative approaches. Primary consumer companies that float on the Indonesia Stock Exchange between 2018 and 2022 are the study's subjects. After 35 enterprises were selected as a sample, there were 106 companies in the research population. This study also makes use of a non-probability sampling method called purposive sampling. Version 26 of the Statistical Product and Service Solution (SPSS) is a special tool utilized in the data analysis methodology. The results showed that transfer pricing had an impact on tax evasion but that capital structure, sales growth, capital intensity ratio, and inventory intensity did not. It is expected that this study will enable future researchers to examine the factors driving tax avoidance more extensively and provide a more thorough examination of these concerns.