ARE FINANCIAL INSTITUTIONS TAX AGGRESSIVE? EVIDENCE FROM CORPORATE TAX RETURN DATA

Efendi, S; Darmadi, S; Czernkowski, R

ARE FINANCIAL INSTITUTIONS TAX AGGRESSIVE? EVIDENCE FROM CORPORATE TAX RETURN DATA

Efendi, S

Darmadi, S

Czernkowski, R

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Publisher:: Bank Indonesia, Central Banking Research Department - Digital Commons
Publication Type:: Journal Article
Citation:: Buletin Ekonomi Moneter dan Perbankan, 2022, 25, (2), pp. 173-202
Issue Date:: 2022-01-01

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Field	Value	Language
dc.contributor.author	Efendi, S https://orcid.org/0000-0001-6221-1688
dc.contributor.author	Darmadi, S https://orcid.org/0000-0002-7705-2672
dc.contributor.author	Czernkowski, R https://orcid.org/0000-0002-8381-8304
dc.date.accessioned	2023-07-05T21:20:21Z
dc.date.available	2023-07-05T21:20:21Z
dc.date.issued	2022-01-01
dc.identifier.citation	Buletin Ekonomi Moneter dan Perbankan, 2022, 25, (2), pp. 173-202
dc.identifier.issn	1410-8046
dc.identifier.issn	2460-9196
dc.identifier.uri	http://hdl.handle.net/10453/171211
dc.description.abstract	This study examines how financial firms’ tax aggressiveness differs from their peers in other sectors. Using confidential tax return data of the 5,968 largest Indonesian firms from 2009 to 2017, our study finds financial firms to have lower tax burdens relative to their non-financial counterparts, suggesting more opportunities for tax avoidance. Further, we document simultaneous use of tax shelters and temporary and permanent differences between accounting standards and tax laws, indicating a tendency to use the most sophisticated and less costly techniques in minimising tax burdens. These findings suggest tax aggressiveness may be one important unintended consequence of the government’s conventional prudential policy.
dc.language	en
dc.publisher	Bank Indonesia, Central Banking Research Department - Digital Commons
dc.relation.ispartof	Buletin Ekonomi Moneter dan Perbankan
dc.relation.isbasedon	10.21098/bemp.v25i2.1825
dc.rights	info:eu-repo/semantics/openAccess
dc.subject.classification	3801 Applied economics
dc.title	ARE FINANCIAL INSTITUTIONS TAX AGGRESSIVE? EVIDENCE FROM CORPORATE TAX RETURN DATA
dc.type	Journal Article
utslib.citation.volume	25
pubs.organisational-group	/University of Technology Sydney
pubs.organisational-group	/University of Technology Sydney/Faculty of Business
pubs.organisational-group	/University of Technology Sydney/Faculty of Business/Accounting Discipline
utslib.copyright.status	open_access	*
dc.date.updated	2023-07-05T21:20:20Z
pubs.issue	2
pubs.publication-status	Published
pubs.volume	25
utslib.citation.issue	2

Abstract:

This study examines how financial firms’ tax aggressiveness differs from their peers in other sectors. Using confidential tax return data of the 5,968 largest Indonesian firms from 2009 to 2017, our study finds financial firms to have lower tax burdens relative to their non-financial counterparts, suggesting more opportunities for tax avoidance. Further, we document simultaneous use of tax shelters and temporary and permanent differences between accounting standards and tax laws, indicating a tendency to use the most sophisticated and less costly techniques in minimising tax burdens. These findings suggest tax aggressiveness may be one important unintended consequence of the government’s conventional prudential policy.

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http://hdl.handle.net/10453/171211