THE IMPACT OF GOOD CORPORATE GOVERNANCE AND CORPORATE

Authors

Taxes are one of the main sources of state revenues used for development and public

welfare. Conversely for tax companies is one of the most significant expenditures.

Therefore, the company will always look for loopholes to reduce tax costs because

the tax is a burden that will reduce the company's profit. The company also adopted a

tax strategy for the purpose of maximizing shareholder value.

In this study using agency theory. Agency agent is the relationship or contract

between principal and agent.In companies (business sector organizations),

shareholders and supervisors act as principal, and chief executive offer (CEO) and

subordinate as their agent

This study examines the influence of Good Corporate Governance and Corporate

Social Responsibility to tax aggressiveness. Good Corporate Governance is measured

by audit quality and ownership concentration. While tax aggressiveness is measured

by Effective Tax Rate (ETR). Corporate Social Responsibility is measured by the

disclosure of Corporate Social Responsibility Population of this research is

manufacturing companies listed on the Indonesia Stock Exchange (IDX) from 2011

to 2015 as many as 325 samples. Samples were chosen based on purposive sampling

method. The data used is secondary data coming from Indonesia Stock Exchange

website www.idx.co.id.

Regression test results indicate that audit quality and ownership concentration have

positive effect on tax aggressiveness. While Corporate Social Responsibility has no

significant effect on aggressiveness.

These results indicate the existence of qualified auditors can improve the behavior of

tax aggressiveness either directly or indirectly. This is because there is a transfer of

tax knowledge implicitly done by the auditor to the client to lower the income tax

burden. On the other hand a high concentration of ownership in a company makes it

easier to control that can be done by majority shareholder and majority shareholder

has enough strength to execute company strategy including strategy in taxation field.

The level of CSR disclosure in the company's annual report can not be used as a

guarantee of low tax aggressiveness made by the company because CSR information

disclosed by the company is not necessarily in accordance with the actual conditions

Keyword : Agency Theory, Audit Quality, Concentration Ownership, Corporate

Social Responsibility