The Effect of Profitability, Leverage, and Liquidity on Tax Aggressiveness in Energy Sector

Companies on the Indonesia Stock Exchange in 2019-2021

Muhammad Ilhamdi1, M.Zaky Mubarak Lubis2, Maisya Pratiwi3
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Faculty of Islamic Economics and Business State Islamic University of Imam Bonjol
Padang
Email: Ilhamdi1709@gmail.com, zakylubis@uinib.ac.id, maisyapratiwi@gmail.com
Abstract.
Tax aggressiveness is a business or action that aims to reduce the tax burden through tax
planning so that the profits earned by the company are getting bigger. This research is to
measure tax aggressiveness using the effective tax rate (ETR). The smaller the ETR value
indicates the company is more aggressive towards taxes while the greater the ETR value
indicates the company is not aggressive towards taxes. This study uses quantitative data
types, the data are time series and cross sections from secondary data sources. The population
in this study is 76 energy sub-sector companies listed on the Indonesia Stock Exchange in the
2019-2021 period. The sampling method used in this study was purposive sampling based on
certain criteria and obtained a sample of 16 companies. Data was processed using Eviews
Version 12. The results showed that Profitability has a positive and significant effect on Tax
Aggressiveness. Leverage has a negative and insignificant effect on corporate tax
aggressiveness. Liquidity has a negative and significant effect on corporate tax
aggressiveness. For, leverage and liquidity influence simultaneously or jointly and
significantly to corporate tax aggressiveness.
Keywords: Profitability, Leverage, Liquidity, and Tax Aggressive