Shareholders, Tax Amnesty and Tax Planning for Manufacture Industry in Indonesia

Muhammad Rifky Santoso, Azhar Maksum, Rina Br. Bukit, Ramli

2019

Abstract

The company minimizes the income tax expenses by applying the tax planning strategy. On the other hand, the government needs income taxes revenues. Therefore, the government issued a tax amnesty policy so that income tax revenues increase and taxpayers become more compliant. It is necessary to examine whether the tax amnesty program can meet the expectations of the government, namely the increase in income tax revenues and taxpayers being more compliant. By taking a sample of manufacturing companies listed on the IDX and data from 2014 to 2017, it is known that the tax amnesty program that is in effective in 2016 and 2017 can increase income tax revenue in the tax amnesty year applied but makes the taxpayers more aggressive in doing tax planning strategy. Compared to domestic institutional shareholders, foreign shareholders are more aggressive in doing tax planning strategy when tax amnesty is applied. If the government's goal is only to increase income tax revenues from the rupiah amount, then the tax amnesty can be used. The negative effect of tax amnesty is that the taxpayers are increasingly aggressive in doing tax planning.

Paper Citation

in Harvard Style

Santoso M., Maksum A., Bukit R. and Ramli. (2019). Shareholders, Tax Amnesty and Tax Planning for Manufacture Industry in Indonesia. In Proceedings of the 2nd Economics and Business International Conference - Volume 1: EBIC, ISBN 978-989-758-498-5, pages 162-169. DOI: 10.5220/0009200701620169

in Bibtex Style

@conference{ebic19,
author={Muhammad Rifky Santoso and Azhar Maksum and Rina Br. Bukit and Ramli},
title={Shareholders, Tax Amnesty and Tax Planning for Manufacture Industry in Indonesia},
booktitle={Proceedings of the 2nd Economics and Business International Conference - Volume 1: EBIC,},
year={2019},
pages={162-169},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0009200701620169},
isbn={978-989-758-498-5},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 2nd Economics and Business International Conference - Volume 1: EBIC,
TI - Shareholders, Tax Amnesty and Tax Planning for Manufacture Industry in Indonesia
SN - 978-989-758-498-5
AU - Santoso M.
AU - Maksum A.
AU - Bukit R.
AU - Ramli.
PY - 2019
SP - 162
EP - 169
DO - 10.5220/0009200701620169