Religiosity Perspective in Tax Avoidance; Case Study in Indonesia
Abstract
This study aims to examine the influence of religiosity on corporate tax avoidance in Indonesia. The previous studies indicate that there is a link between religiosity, ethics and risk aversion. Even though Tax avoidance activities can increase the corporate value, it also relates to risk and uncertainty as the result of their chance of detection, which can lead to company lost. Indonesia as the largest Muslim country in the world has two economic systems that are based on common law and Islamic sharia law. Corporates that follow the sharia system, are registered as sharia securities companies which are legalized by the government. This research is using samples from companies that are listed as sharia effects, while the result of this research will show the effect of religiosity in preventing corporate tax avoidance in Indonesia.
Keywords: religiosity, tax avoidance
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