Tax Avoidance: Capital Intensity, Accounting Conservatism, Transfer Pricing, and Financial Distress using Institutional Ownership as Moderation Variable

Indonesia deploys a self-assessment system that endows taxpayers to compute, pay, and remit their taxes by applicable tax provisions. By leveraging loopholes in tax regulations, companies commit tax avoidance practices to be able to pay the minimum amount of tax without violating applicable tax provisions.
This research is quantitative research with the subject of research being industrial sector companies listed on the Indonesia Stock Exchange in 2019-2023. The population for this study consists of 65 companies. The sampling methodology employed was purposive sampling and 40 companies were selected to comprise the total sample of 140 data after the outlier. The data utilized in this research are secondary data derived from the company's annual report and financial statements. The analytical techniques used are multiple linear regressions and moderated regression analysis using the IBM SPSS Statistics version 26 program. The findings of the research indicate that capital intensity, transfer pricing, and financial distress have no significant effect on tax avoidance; accounting conservatism has a significant negative effect on tax avoidance; institutional ownership cannot moderate the effect of capital intensity, accounting conservatism, and transfer pricing on tax avoidance; and institutional ownership can strengthen the effect of financial distress on tax avoidance.