Transfer Pricing Aggressiveness, Thin Capitalization, Political Connection, Tax Avoidance: Does Corporate Governance Have A Role in Indonesia?

This study investigates the association of transfer pricing aggressiveness, thin capitalization, and political connection with tax avoidance corporate governance's role in moderating these associations. The secondary data this are information obtained from financial reports annual sourced www.idx.co.id www.idnfinancials.com. analysis is conducted on 61 non-financial multinational companies listed Indonesia Stock Exchange over 2016-2019 period, chosen by purposive sampling method resulting 244 firm-year. Hypothesis testing employs regression a panel. result suggests that aggressiveness negatively associated avoidance. In contrast, capitalization positively However, governance can weaken each indicates Indonesian Tax Authority should consider large interest debt structures list priorities inspection policy. Also, shows firms less likely to use avoid tax.