Riset in Taxation

Agenda Taxation in Indonesia Research in Taxation Paper Discussion

Taxation In Indonesia

Pengertian Pajak Prof. Dr. Rochmat Soemitro, S.H iuran rakyat kepada kas negara berdasarkan undang- undang (yang dapat dipaksakan) dengan tidak mendapat jasa timbal (kontraprestasi), yang langsung dapat ditunjukkan dan yang digunakan untuk membayar pengeluaran umum (Dasar-dasar hukum pajak dan pajak pendapatan 1990:5) 4

Definisi Pajak Dipungut berdasarkan undang-undang Tidak menunjukkan adanya kontraprestasi Dipungut negara baik pemerintah pusat dan daerah Diperuntukkan pengeluaran pemerintah  public investment Mempunyai tujuan lain  reguler 5

Mengapa Belajar Pajak ?? PAJAK Kewajiban Individu Kewajiban Perusahaan (AK) Penerimaan Negara (ASP) Pertumbuhan ekonomi (Makro) 6

Pajak dalam Laporan Keuangan Laporan posisi keuangan Laporan laba rugi Arus kas 7

Pajak dalam Laporan Keuangan Catatan atas Laporan keuangan 8

Ilustrasi Pajak Perusahaan LABA RUGI Laba sebelum pajak xxx Pajak kini (current tax) (xxx) Pajak tangguhan (deferred tax) xxx Laba tahun bjln dari operasi dilanjutkan xxx Kerugian/pendapan operasi dihentikan xxx Laba tahun berjalan xxx Penghasilan komprehensif lain xxx Pajak penghasilan terkait (xxx) Total laba komprehensif xxx Laba yang dapat diatribusikan kepada: Pemilik entitas induk xxx Kepentingan non pengendali xxx NERACA Aset Pajak Tangguhan xxx atau Liabilitas Pajak Tangguhan xxx 9

Pajak dalam APBN 2018 10

Pertumbuhan Penerimaan Pajak Dalam Triliun Rp Pertumbuhan per tahun Tax Ratio Arti sempit: hanya pajak saja Arti luas: termasuk SDA Migas dan minerba 11

Komposisi Penerimaan Pajak APBN 2017 12

Komposisi Pajak dan Tax Amnesty 13

Pajak Perusahaan Badan Dipotong PPh 23 atas penghasilan jasa Memotong PPh 21 atas gaji, PPh 23 atas jasa PPN atas penyerahan barang/jasa Penghasilan Beban yang dapat dikurangkan Penghasilan kena pajak X tarif pajak Pajak terutang 1thn fiskal Kredit pajak Angsuran pajak (PPh25) Dipotong pihak lain (22,23) Pajak luar negeri (24) Pajak kurang/lebih bayar (29/28 PBB Meterai BPHTB Pajak Daerah Lapor KPP Setor Kas negara 14

Perbedaan Pajak dan Akuntansi -1 PSAK Undang-Undang AKUNTANSI PAJAK PERBEDAAN Permanen Temporer Penelitian: Book tax Gap Eff Tax Rate Pajak Tangguhan: Aktiva/utang Beban/Pendapatan 15

UU PAJAK PENGHASILAN (UU 36/2008) Perubahan keempat dari UU 7/1983 Subyek Pajak Obyek; bukan obyek; pengurang dan bukan pengurang Obyek Pajak Tarif, struktur modal, harga transaksi, revaluasi Cara Menghitung Pajak PPh 21; 22; 23; 24; 25 Pelunasan pajak dalam Tahun Berjalan PPh 28; PPh 29 Perhitungan pajak akhir tahun 16

Subjek Pajak Orang Pribadi (OP) Pasal 2 Ayat (1 dan 1a) Orang Pribadi (OP) Warisan yang belum terbagi sebagai satu kesatuan, bersifat menggantikan yang berhak. Badan Bentuk usaha tetap (BUT), merupakan subyek pajak yang perlakuan pajaknya dipersamakan dengan subyek pajak badan. 17 3 3

Dengan nama dan dalam bentuk apapun Definisi Penghasilan Pasal 4 Ayat (1) Merupakan setiap tambahan kemampuan ekonomis yang: - Diterima atau diperoleh wajib pajak. - Berasal dari Indonesia maupun dari luar Indonesia. - Dapat dipakai untuk konsumsi atau untuk menambah kekayaan wajib pajak. Dengan nama dan dalam bentuk apapun 18 13 13

UU PPN & PPnBM (UU 42/2009) Perubahan keempat dari UU 8/1983 Pengukuhan pengusaha kena pajak Kewajiban melaporkan usaha, memungut dan menyetor dan melaporkan pajak terutang Obyek Pajak Tarif dan Cara Menghitung Pajak Saat dan tempat terutang Laporan Perhitungan pajak Ketentuan Khusus - pemungut 19

KETENTUAN UMUM TATA CARA PERPAJAKAN FISKUS WAJIB PAJAK Pemeriksaan Penetapan (SKP) Keberatan Banding Kasasi c Pendaftaran (NPWP-NPPKP) Pembukuan/ Pencatatan Pembayaran (SSP) Pelaporan (SPT) Pendaftaran (NPWP-NPPKP) Pembukuan/ Pencatatan Pembayaran (SSP) Pelaporan (SPT) c BPP MA 20

Pembukuan dilakukan Berdasarkan Standar Akuntansi Indonesia Pernyataan Standar Akuntansi Keuangan - PSAK Standar Akuntansi Keuangan Entitas Tanpa Akuntabilitas Publik signifikan - SAK-ETAP Standar Akuntansi Entitas Mikro Kecil Menengah - SAK EMKM Standar Akuntansi Syari’ah – SAK Syariah Standar Akuntansi Pemerintahan – SAP PP 71 tahun 2010 IFRS hanya diadopsi PSAK full 2012. Tahun 2013 dilakukan revisi standar dan ditambahkan standar baru 65, 66, 67, 68 yang efektif pada 2015. Pada 2015 dikeluarkan PSAK 69 Agrikultur dan revisi beberapa standar. Pada tahun 2016 dikeluarkan PSAK 70 dan PSAK 71 & PSAK 72. Tahun 2017 PSAK 73 efektif berlaku pada 2020 SAK ETAP dikeluarkan tahun 2010, dan 2016 dikeluarkan SAK EMKM Pada 26 Mei 2016: Revisi PSAK 108 Akuntansi Transasi Asuransi Syariah dan PSAK 101 LK Syariah 21

Research in Taxation

Riset pajak di Indonesia Kebijakan perpajakan : Kepatuhan WP terhadap peraturan pajak Tax gap = antara potensi pajak dengan jumlah pajak yang telah masuk baik dari sisi obyek maupun subyek Pengenaan pemotongan pajak Implikasi kebijakan perpajakan Tax amnesty, Revaluasi aset Reformasi pajak: E-filling; E-billing TP Doc Pajak dan perekonomian Trend Penerimaan pajak Tarif pajak dan kompetisi ekonomi 23

Riset Perusahaan Pengungkapan Akuntansi Pajak penghasilan Pengaruh pajak terhadap cost of debt and capital Ketaatan perusahaan memenuhi kewajiban pajak Pajak dalam laporan keuangan  book tax difference; earning management; pajak tangguhan. Tax management, tax avoidance, tax evasion Pajak internasional  transfer pricing, heaven countries, thin capitalization Book tax different: Penyebab Time & Permanent (tax planning) – aset tetap, foreing operation, debt Potensi rekonsiliasi fiskal untuk earning management. Dampak Book tax gap terhadap persistensi laba, nilai perusahaan. Faktor yang mempengaruhi book tax different : CG, kepemilikan Hubungan tax planning dan earning management Pengukuran book tax different Penelitian atas Surat Ketetapan Pajak  riil earning management 24

Perilaku Penghindaran pajak (persepsi, laporan keuangan) Faktor yang mempengaruhi penghindaran pajak Penelitian experiment terkait perilaku penghindaran pajak Ketaatan pajak Faktor yang mempengaruhi  etika, kepercayaan pada pemerintah, religuisitas. Etika dalam perpajakan  data primer 25

Penelitian Pajak Penelitian pajak sebelum pertengahan 1980 menurut Shackelford dan Shevlin (2001) dikategorikan menjadi: legal research,  mengevaluasi efek pajak pada transaksi exogenous, dan biasanya dipublikasikan pada jurnal hukum; dan policy studies,  mengevaluasi distribusi atau efisiensi efek pajak, biasanya dipublikasikan di jurnal akuntansi publik. Riset banyak dijumpai dalam jurnal akuntansi seperti TAR, JAR, JAE. Riset pajak bersifat multidisipliner sehingga dikaitkan dengan makro ekonomi, perilaku, kebijakan publik  National Tax Journal, Journal of Public Econmics, Journal of Accounting and Public Policy 26

Penelitian Pajak Paper pajak dalam tiga jurnal akuntansi terkemuka. 27

Klasifikasi Penelitian Pajak Klasifikasi penelitian pajak menurut Shevlin (1999) Riset kebijakan  bagaimana pajak meningkatkan aktivitas ekonomi, mendistribusikan kekayaan dan bagaimana meningkatkan pajak. Evaluasi atas kebijakan pajak apakah dapat mencapai tujuannya. (JATA & NTJ) Perencanaan pajak  bagaimana individu dan perusahaan merespon peraturan pajak. Kepatuhan pajak  judgemnet and decision making sehingg banyak dipengaruhi oleh bidang psikologi 28

Klasifikasi Penelitian Pajak Klasifikasi penelitian pajak menurut Shacklelford dan Shevlin (2001) Trade off pajak dan non pajak  Perencanaan pajak mempengaruhi pilihan akuntansi keuangan dan pertimbangan akuntansi keuangan mempengaruhi perencanaan pajak (tidak independen) Pelaporan keuangan (inventory, intertemporal income shifting, Agency cost Pajak dan penilaian saham  dampak pajak atas M&A, capital structure, pengaruh pajak investor terhadap harga saham Multijurisdictional  perusahaan multinasional dan perusahaan multistate 29

Klasifikasi Penelitian Pajak Klasifikasi penelitian pajak menurut Hanlon dan Heitzman (2010) : peran informasi beban pajak penghasilan  perbedaan antara laba akuntansi dengan penghasilan kena pajak terkait dan implikasinya terhadap pelaporan keuangan; tax avoidance (penghindaran pajak) perusahaan; efek pajak terhadap pengambilan keputusan perusahaan termasuk investasi, struktur modal, dan bentuk organisasi, serta kebijakan pajak mana yang efektif dilihat dari implikasi nyatanya terhadap keputusan perusahaan. pajak investor (investor level taxes) dan penilaian aset (asset pricing) – terkait riset mengenai dampak dari pajak dividen untuk investor dan pajak atas capital gains 30

Klasifikasi Penelitian Pajak Klasifikasi penelitian akuntasi pajak menurut Graham et al (2012) : earnings management  valuation allowance, diskresi pelaporan beban pajak,pendapan hubungan antara perbedaan nilai buku dengan nilai pajak (book-tak differences) dengan karakteristik/kualitas laba; dan Pengaruh informasi pajak terhapda nilai saham 31

Metodologi Penelitian Pajak Coyne (2010) Analitis Archival / empiris Eksperimental Metode lainnya Klasifikasi lain teoritis, normatif Behavioral / judgement and decision making Review / deskriptif Survey; studi lapangan 32

Research in Taxation Methodology Experimental market Behavioral /judgment and decision making – 40% Analythical Empirical – 50% Top Accounting Journal & Taxation The Journal of American Taxation Association (JATA) Journal of Accounting Review (JAR) The Accounting Review (TAR) Journal of Accounting and Economic Classification Tax Policy research  effectiveness of policy to achieve the goals Tax planning research  respond on tax rule Complience Research 33

Tax Research 34

Research in Tax Planning 35

TAX RESEARCH IN ACCOUNTING D.A. Shackelford, T. Shevlin, Journal of Accounting and Economics This paper traces the development of archival, microeconomic- based, empirical income tax research in accounting over the last 15 years. The paper details three major areas of research: the coordination of tax and non-tax factors, the effects of taxes on asset prices the taxation of multijurisdictional (international and interstate) commerce. Methodological concerns of particular interest to this field also are discussed. Research before 1980 Legal research, evaluating the effects of taxes on exogenous transactions, usually published in law journals, and Policy studies, evaluating the distributional or efficiency effects of taxes, usually published in public economics journals. 36

Research Question Tax research has long attempted to address three questions of scholarly and policy interest: Do taxes matter? If not, why not? If so, how much? Current tax research in accounting addresses these questions using a framework developed by by Scholes and Wolfson (SW, 1992). 37

Scholes–Wolfson paradigm Effective tax planning requires the [tax] planner to consider the tax implications of a proposed transaction for all of the parties to the transaction. Effective tax planning requires the planner, in making investment and financing decisions, to consider not only explicit taxes (tax dollars paid directly to taxing authorities) but also implicit taxes (taxes that are paid indirectly in the form of lower before-tax rates of return on tax-favored investments). Effective tax planning requires the planner to recognize that taxes represent only one among many business costs, and all costs must be considered in the planning process: to be implemented, some proposed tax plans may require exceedingly costly restructuring of the business.’’ (SW, p. 2). 38

Scholes–Wolfson paradigm The three themes - All parties, all taxes, and all costs provide a structure for tax management that achieves organizational goals, such as profit or wealth maximization. The themes imply that tax minimization is not necessarily the objective of effective tax planning. Effective tax planning must be evaluated in the efficient design of organizations and through adoption of a contractual perspective. The paradigm implicitly assumes that if all contractual parties, all taxes (explicit and implicit), and all non-tax costs can be identified and controlled, then the observed tax behavior will be rational and predictable. No paper challenges the validity of the SW framework. 39

Tax and non-tax tradeoffs Financial reporting considerations Inventory accounting Compensation Inter-temporal income shifting Capital structure, divestitures and asset sales Regulated industries Other setting – accounting for depreciable asset Agency Costs Tax shelters Tax research in accounting examines the coordination of taxes and other factors in business decisions. Taxes cannot be minimized without affecting other organizational goals. This review of the tradeoff literature is dichotomized: the interaction of financial reporting and tax factors the effects of agency costs on tax minimization. 40

Taxes and assets prices Merger and acquisition Capital structure Implicit taxes Equity price and investor taxes Dividends tax capitalization Capital gains tax capitalization studies of equilibrium prices Price pressure arising from capital gains taxes 41

Research in Taxation - methodology Experimental market Behavioral /judgment and decision making Analythical Empirical Classification Tax Policy research  effectiveness of policy to achieve the goals Tax planning research  respond on tax rule Complience Research 42

Suggestion Future Research First, the better research in the future will move beyond simply documenting that taxes matter. Second, additional theoretical guidance is needed to move the literature beyond SW and longstanding finance papers. Third, the methodological concerns raised in this paper imply that more rigorous econometrics may be needed. Fourth, we anticipate tax research in accounting to better incorporate knowledge from other areas, particularly finance and public economics. Fifth and closely related to the last development, tax research in accounting should increasingly impact the tax research being undertaken in finance and economics as the common interest across disciplines is better recognized. 43

Suggestion We close with a few thoughts about potentially new areas of research. First , strong links have been developed between financial accounting and taxes. Second, a potentially understudied topic is accounting for income taxes, which neither tax research nor financial accounting research has closely evaluated. Finally, little is known about the potential cross-sectional differences in the willingness of firms to avoid taxes. One determinant that has attracted attention is the extent to which managers or other insiders control the firm. 44

Paper Discussion

A Review of Tax Research Michelle Hanlon and Shane Heitzman, Journal of Accounting and Economics (2010) (50) 127-178. 46

Introduction Shackelford and Shevlin (2001) limit their review to research published in accounting outlets and describe the development of the relatively young archival, microeconomic-based income tax literature that arose from the Scholesand Wolfson framework. Maydew(2001) emphasizes the need for tax researchers in accounting to think more broadly and to incorporate more theory and evidence from economics and finance. Tax research has along history in many disciplines. The goal in this paper is to integrate the theoretical and empirical tax research from accounting, economics, and finance, to summarize what is known and unknown, and to offer suggestions for future research. 47

Review Tax Research Review Tax Research The informational role of accounting for income taxes Taxes, book-tax tradeoffs, and real corporate decisions Review Tax Research corporate tax avoidance Taxes and asset pricing 48

Informational role of AFIT A taxonomy of the literature and review of the evidence Inferences from book-tax differences about current and future earnings. Are earnings managed through the tax accounts? Do changes in the valuation allowance reveal manager’s private information about future performance? Sources of differences between book and taxable income The informational role of accounting for income taxes Book-tax conformity Summary and suggestions for the future 49

Tax Avoidance corporate tax avoidance 50 Theory of corporate tax avoidance Tax system : tax rate Legal system & governance Determinants of tax avoidance (firm characteristic, manager effects, ownership, governance, incentives Measuring tax avoidance Effective tax rate measures Long-run effective tax rates Book-tax differences Discretionary or ‘‘abnormal’’ measures of tax avoidance Unrecognized tax Tax shelter firms benefits (UTB) The consequences of tax avoidance Direct: CF, Firm Value Indirect: cap structure decision corporate tax avoidance Summary and suggestions for the future 50

Pengukuran Tax Avoidance Metode Pengukuran Cara Perhitungan Keterangan GAAP ETR 𝑤𝑜𝑟𝑙𝑑𝑤𝑖𝑑𝑒 𝑡𝑜𝑡𝑎𝑙 𝑖𝑛𝑐𝑜𝑚𝑒 𝑡𝑎𝑥 𝑒𝑥𝑝𝑒𝑛𝑠𝑒 𝑤𝑜𝑟𝑙𝑑𝑤𝑖𝑑𝑒 𝑡𝑡𝑎𝑙 𝑝𝑟𝑒−𝑡𝑎𝑥 𝑎𝑐𝑐𝑜𝑢𝑛𝑡𝑖𝑛𝑔 𝑖𝑛𝑐𝑜𝑚𝑒 Total tax expense per dollar of pre-tax book income Current ETR 𝑤𝑜𝑟𝑙𝑑𝑤𝑖𝑑𝑒 𝑐𝑢𝑟𝑟𝑒𝑛𝑡 𝑖𝑛𝑐𝑜𝑚𝑒 𝑡𝑎𝑥 𝑒𝑥𝑝𝑒𝑛𝑠𝑒 𝑤𝑜𝑟𝑙𝑑𝑤𝑖𝑑𝑒 𝑡𝑡𝑎𝑙 𝑝𝑟𝑒−𝑡𝑎𝑥 𝑎𝑐𝑐𝑜𝑢𝑛𝑡𝑖𝑛𝑔 𝑖𝑛𝑐𝑜𝑚𝑒 Current tax expense per dollar of pre-tax book income Cash ETR 𝑤𝑜𝑟𝑙𝑑𝑤𝑖𝑑𝑒 𝑐𝑎𝑠ℎ 𝑡𝑎𝑥𝑒𝑠 𝑝𝑎𝑖𝑑 𝑤𝑜𝑟𝑙𝑑𝑤𝑖𝑑𝑒 𝑡𝑡𝑎𝑙 𝑝𝑟𝑒−𝑡𝑎𝑥 𝑎𝑐𝑐𝑜𝑢𝑛𝑡𝑖𝑛𝑔 𝑖𝑛𝑐𝑜𝑚𝑒 Cash tax paid per dollar of pre-tax book income Long-run cash ETR 𝑤𝑜𝑟𝑙𝑑𝑤𝑖𝑑𝑒 𝑐𝑎𝑠ℎ 𝑡𝑎𝑥𝑒𝑠 𝑝𝑎𝑖𝑑 𝑤𝑜𝑟𝑙𝑑𝑤𝑖𝑑𝑒 𝑡𝑡𝑎𝑙 𝑝𝑟𝑒−𝑡𝑎𝑥 𝑎𝑐𝑐𝑜𝑢𝑛𝑡𝑖𝑛𝑔 𝑖𝑛𝑐𝑜𝑚𝑒 Sum of taxes paid per over n years divided by the sum of pre-tax earnings over n years ETR Differential Statutory ETR- GAAP ETR The differences of between the statutory ETR and the firm´s GAAP ETR DTAX Error term from following regression : ETR differential x Pre-tax book income = a +b x controls + e The unexplained portion of the ETR differential Sumber : Hanlon dan Heitzman (2010) 51

Tax Avoidance 52 Metode Pengukuran Cara Perhitungan Keterangan Total BTD Pre-tax book income – ((U.S. CTE + Fgn CTE / U.S. STR) – (NOLt – NOLt-1)) The total differences between book and taxable incomes Temporary BTD Deferred tax expense/ U.S. STR   Abnormal total BTD A measure of unexplained total book-tax differences Unrecognized tax benefit Disclosed ammount post-FIN-48 Tax liability accrued for taxes not yet paid on uncertain positions Tax shelter activity Indicator variable for firms accused of engaging in a tax shelter Firms identified via firm disclosures, the press, or IRS confidential data Marginal tax rate Simultated marginal tax rate Present value of taxes on an additional dollar income Sumber : Hanlon dan Heitzman (2010) 52

Tax & Corporate Decison Investment Theory of investment and taxes: a brief background Taxes and investment: some evidence Investment in intangibles Investment location decisions The reinvestment or repatriation decision Corporate inversions to tax havens Summary and thoughts for future research Capital structure Estimating the tax benefit of debt Measuring leverage Summary and thought for the future Payout policy Taxes and other dec: transfer pricing, aquistioan and compensation Transfer pricing Merger and aquisition Executive compensation Executive trading Taxes, book-tax tradeoffs, and real corporate decisions Organizational form The choice of organizational form Summary and thought for future research

Tax & Aset Pricing Investor-level taxes and asset prices Thoughts for future research Capital gains taxation: capitalization & lock-in Capital gains taxes and expected return Stock market realization and lock-in effect Deviden taxation The economic effects of dividen taxation: a brief introduction Log-horizon returns: the effect of dividend yiled on expected returns Event study predictions: the valuation of dividend tax rate change Ex-devidend day study Evidence from valuation models Summary Investor-level taxes and asset prices Remaining issues and Ques for future research How relevant the marginal investor? Are dividend taxes priced differently across firms Asset pricing in the open economy

Research in Accounting for Income Taxes John R.Graham, Jana S.Raedy , Douglas A.Shackelford Journal of Accounting and Economics (2011) Nov

The Rule Governing Accounting for Income Taxes Temporary difference Permanent Different Uncertain tax contingent Permanently reinvested foreign earnings

Why Accounting of Income Taxes Income Tax expense is significant expense Tax accounts provide information to an adversarial party Tax account provide an alternative measure of income Tax expense is never included as component of operating expense

Research in Accounting for Income Taxes Earnings management Earnings characteristics, and the equity market pricing of information in the tax accounts. Research in Accounting for Income Taxes The association between book-tax differences

Earning Management Earning Management Studies of earning management via discreation in reporting the US tax expense on foreign profit Studies of earning management via the valuation allowance Earning Management Other studies Studies of earning management via the tax contingency account Future research in earning management

Informational role of AFIT Persistence of tax information – tax change component or earning BTD effects earning growth Association between boot tax differences and earning characteristics BRD and earning persistence Earning quality proxies

The pricing of tax information reported in the FS Tax Avoidance Deferred tax account Empirical studies Theoritical studies Tax Contingency The pricing of tax information reported in the FS Information content of estimated taxable income and book tax difference Ass. Contemporaneous return and BTD Ass. future return and estimated taxable income Summary Future research in pricing of tax information in FS

Conclusion Tax on real corporate decesion difficult to document. Informational role of AFIT More detailed examination sources of books tax different Tax avoidance, gov obejctive : closer the gap, increase complience and collect more revenue. Principle agent setting Tax authority and corporate governance system Theory and evidence causes and consequences of the tax avoidance Taxes are one factor that enter into management cost banefit management decision

Mary Margaret Frank, Luann J Lynch and Sonja Olhoft Rego (2009) TAX REPORTING AGGRESSIVENESS AND ITS RELATION TO AGGRESSIVE FINANCIAL REPORTING Mary Margaret Frank, Luann J Lynch and Sonja Olhoft Rego (2009)

Tujuan dan Kontribusi Tujuan Menguji validitas pengukuran Tax Reporting Aggressivenes Menguji Hubungan antara FRA dengan TRA Menguji Implikasi FRA dan TRA terhaaap kesejahteraan shareholder Kontribusi Menemukan adanya hubungan positif yang kuat antara FRA dengan TRA (Unexplore before) Mengembangkan pengukuran TRA yang mampu mendeteksi aktivitas Tax Shelter Untuk pertama kali menguji pengaruh FRA dan TRA terhadap Future Stock Return Mengukur TRA dengan Permanen Differences

Motivation of Study FRA :Financial Reporting Aggressiveness Investigasi kenaikan FRA dan TRA Perusahaan Amerika Skandal ENRON SEC fokus restatement & Fraud LK Treasury Dept fokus pada deteksi dan tuntutan Aktivitas Tax Shelter FRA :Financial Reporting Aggressiveness TRA : Tax Reporting Aggressiveness SEC: Securities & Exchange Commission

Motivation of Study Trade off Company Financial Statement Income Reported to Tax Authorities

Low Income to Share Holder Motivation of Study FINANCIAL REPORTING UPWARD BOOK INCOME TAX COST Book Tax TRADE OFF Extensive Conformity DOWNWARD TAX INCOME FR COST TAX REPORTING Low Income to Share Holder

THEORY Trade OFF LOWER HIGHER Taxable Income Book Income To share Holder LOWER Taxable Income To Tax authorities Periode yang sama

Motivation of Study NO TRADE OFF Awal 1990an : US Corporation melaporkan Peningkatan Perbedaan antara Income yang dilaporkan kepada Shareholder VS Tax Authority. Indikasi  tidak terjadi Trade Off  terjadi Book Income Upward and Taxable Income Downward  periode yang sama Intinya : Peristiwa ini dimotivasi oleh Skandal Akuntansi yang dicerminkan oleh Aggresiveness Tax Shelter Activity dan Peningkatan Book Tax Gap NO TRADE OFF H1: Financial Reporting Aggressiveness Berpengaruh Positif terhadap Tax Reporting Aggressiveness

Mengukur Tax Reporting Aggressiveness Menggunakan Corporate Tax Planning Effectiveness dengan proksi : ETRs Total Book Tax Difference Cas ETRs Discetionary Total BTD (Residual from Regrression) Propose  rely on  PERMANEN DIFFERENCES

Alasan menggunakan Premanen Differences (bukan Total atau Temporary BTD) Penelitian terdahulu  temporary BTD mencerminkan Manajemen Laba melalui Pretax Accruals (mis: Philips et all, 2003) Hubungan Palsu untuk proksi FRA. (472) Cash ETR  Hubungan Palsu dengan FRA Permanent Difference  Dollar, sedangkan ETRs dalam persentase  Permanen Difference lebih Comparable to Total Acrual Untuk mengukur TRA Permanen Difference lebih Konsisten  dengan menganggap ‘Nature’ aktivitas tax shelter agresif 5 dari 8 Tax Shelter generates Permanent Different (Wilson, 2009) Total BTD, Cash ETRs tidak mengontrol Non Discresionary item (mis: intangible, PPE) yang bisa menyebabkan baik temporary maupun permanent different.

Alasan menggunakan Premanen Differences (bukan Total atau Temporary BTD) Intinya : penelitian ini mengeluarkan Tax Planning yang Menggenerate Temporary Different (472) Walaupun Permanent Different lebih baik namun tidak mempetimbangkan beberapa item terkait TRA, seperti: State Income Taxe, Tax Credit, Change in tax cushion dan Change in valuation Allowance account. Penelitian ini mengestimasi Discresionary Permanent Different (DTAX) Dengan meregresi Total permanen Different on Non Discresionary item yang menyebabkan Permanen Different (mis:intangible) dan other statutory adjustment (mis:state tax).

Validasi pengukuran TRA DTAX sebagai proksi TRA dihitung dengan cara: Dengan mengontrol nondiscresionary item yang tidak berhubungan dengan Tax Planning yang menyebabkan Permanent Different dan Other Statutory Adjustment Untuk External Validity Link it to sampel perusahaan menurut Graham and Tucker (2006) ttg perusahaan yang melakukan Tax Shelter. Sampel  perusahaan yang melukan tax sheltering  melawan pemerintah

Model 2 Memasukkan variabel lain yang berhubungan dengan Tax Planning: PTROA = Profitability (PTROA), NOL_D = Net Operating Loss Carry Forward FOR_D = Foreign Operation SIZE = Firm Size

‘tanda’ dan signifikansi koefisien DTAX bertujuan untuk menunjukkan kemampuan DTAX dalam menjelaskan aktivitas tax shelter Alternatif pengukuran (Logit Regresion) membandingkan kemampuan masing-masing variabel dalam menjelaskan aktivitas tax shelter dengan kemampuan DTAX Antara lain: DTAX = Discresionary Permanent Different

DD = Residual dari Pooled Crossed Sectional Regresion dari Total BTD on Total Accrual DD= TRA by Desai & Dharmapala (2006)

Keunggulan DTAX sebagai alternatif Pengukuran adalah: Mampu mengeluarkan Temporary Different yang merefleksikan earning management Mengontrol Non Discresionary Source of Permanent Kelemahan: Tidak mampu merefleksikan aktivitas Tax Shelter yang men- generate- temporary different (spt:Lease In Lease Out-LILO) Arrangement

Hasil estimasi model 2  mengukur TRA

Hasil estimasi model 2  menukur TRA

Relation Between FRA & TRA Pengukuran FRA. Proksi FRA= Performance-Matchd discretionary Accruals (DFIN)--> Kothari et al (2005) Menggunakan Modified Jones Model (dechow et al, 1995)  Model 3

Robustness Test Perubahan pada tax cushion are terrefleksi pada permanent BTD and berpotensi menambah measurement error untuk mengukur TRA mengontrol lagged permanent differences (LAGPERM) in dalam perhitungan DTAX menghilangkan sejumlah TRA DTAX tidak secara langsung merefleksikan tax planning activity yang menghasilkan temporary different CONSISTENTLY FIND A POSITIVE AND SIGNIFICANT RELATION BETWEEN FINANCIAL AND TAX REPORTING AGGRESSIVENESS

Implikasi FRA bagi kesejahteraan Shareholder

KESIMPULAN A strong positive relation between financial and tax reporting aggressiveness Insufficient cost exist to offset basic financial and tax reporting incentives, such that nonconformity between financial accounting standards and tax allows firms to manage book income upward and taxable income downward in the same reporting period Stock return analysis confirms that investor do not fully incorporate the information in discretionary accrual into stock price and reveals that much investor mispricing is attributable to a hedge portfolio based on measure of tax aggressiveness for firms with the most aggressive financial reporting

Home Country Tax System Characteristics and Corporate Tax Avoidance: International Evidence T. J. Atwood; Michael S. Drake; James N. Myers & Linda A. Myers THE ACCOUNTING REVIEW Vol. 87, No. 6, 2012, pp. 1831–1860

Ruang Lingkup & Tujuan Penelitian Tax Avoidance Diartikan sebagai segala upaya yang menyebabkan terjadinya perbedaan antara jumlah pajak sesuai dengan tarif yang berlaku dengan jumlah pajak yang dibayarkan oleh perusahaan (Dyreng et al. 2008) Karakteristik Sistem Pajak kesesuaian antara laba akuntansi dengan laba fiskal (book tax conformity - BTC) Pendekatan Worldwide vs territorial Persepsi terhadap enforcement Variabel Kontrol Variabel Moderasi Performance, size, operating costs, leveraga, growth, presence of multinational operations dan insdutry Insentif Managerial Komponen Akrual Statutory corporate tax rates, earnings volatility dan institutional factor

Motivasi & Kontribusi Penelitian Reformasi Pajak di AS untuk meningkatkan penerapan book-tax conformity (Desai, 2005) Literatur : Menggambarkan variasi cross-section atas tax avoidance (lintas negara). Penggunaan pendekatan teritorial (Avi Yonah, 2010) Perlunya penegakan hukum dalam pajak (Shulman, 2009) Pembuat Kebijakan (Pemerintah): Dalam rangka menentukan/ menegakkan regulasi perpajakan Tindak lanjut atas penelitian sebelumnya yang meneliti tentang faktor-faktor yang mempengaruhi tax avoidance (Hanlon dan Heizman, 2010) Investor : Dalam rangka menginterpretasikan/ membandingkan Penelitian sebelumnya kebanyakan hanya berfokus pada salah satu negara (Hanlon dan Heizman, 2010)

Pengembangan Hipotesis 1 Terdapat fleksibilitas perbedaan pelaporan laba kena pajak fiskal dengan akuntansi pada setiap perusahaan di berbagai negara (Atwood et al.2010) Perusahaan pada Home Country Required Book-Tax Conformity Tax Avoidance Tax avoidance yang dilakukan oleh manajer akan berkurang dengan adanya peningkatan kewajiban penerapan tax–book conformity di AS (Desai, 2005)

Pengembangan Hipotesis 2 Perusahaan induk di negara yang menganut pendekatan territorial akan lebih diuntungkan jika mengalihkan laba ke negara yang low enforcement karena deviden yang diterima dari anak perusahaan di luar negeri secara permanen dapat dibebaskan dari pajak pada home country, sedangkan pada negara yang menganut pendekatan worlwide, pengalihan tersebut hanya bersifat penangguhan pada home country (Hicks, 2009) Tax Avoidance oleh Perusahaan Home Country Menggunakan Pendekatan Territorial Home Country Menggunakan Pendekatan Worldwide Vs Perusahaan multinasional pada home country yang menganut pendekatan territorial cenderung menggeser pendapatan pada afiliasi asing dibandingkan perusahaan pada home country yang menganut pendekatan worldwide (Markle, 2010)

Pengembangan Hipotesis 3 Hukuman yang dikenakan langsung kepada manajer akan lebih efektif dalam mengurangi tax avoidance dibandingkan jika hukuman dikenakan kepada korporasi (Crocker dan Slemrod, 2005) Tax Avoidance oleh Perusahaan Berdomisili di Negara Low Enforcement Berdomisili di Negara Strong Enforcement Probabilitas pemeriksaan pajak yang tinggi meningkatkan kualitas akrual dan posisi pajak perusahaan publik kurang agresif (Slemrod, 2004) Vs Menyusul peningkatan penegakan hukum perpajakan di Rusia, pembayaran pajak meningkat, perdagangan dengan pihak terkait dibatasi dan entitas tax haven ditinggalkan (Desai, 2007)

Pengukuran Tax Avoidance (Dyreng, 2008)

Model Tax Avoidance

Pengukuran Required Tax-Book Conformity (BTaxC) : (Atwood et al. 2010) Kaidah Keputusan (Lihat Model Tax Avoidance ): H1 = Jika BTaxC TaxAvoid (Negatif /α1 < 0) H2 = Jika WW  Tax Avoid (Negatif /α2 < 0) H3 = Jika TaxEnf  Tax Avoid (Negatif /α3 < 0)

Model Tax Avoidance dengan Incentive Compensation Ekspektasi Peneliti: Terdapat perbedaan koefisien antara kategori High dan Low.

Model Tax Avoidance dengan Accruals Components WC = Current operating assets – Current operating liabilities NCO = Noncurrent operating assets – Noncurrent operating liabilities FIN = Financial assets – Financial liabilities Richardson et al. (2005) Ekspektasi Peneliti: Terdapat pengaruh positif antara TaxAvoid dengan accruals.

SAMPEL DAN DATA Sampel diperoleh dari semua perushaan yang terdaftar pada Compustat Global Industrial/Commercial data base dari tahun 1993-1997 kriteria yang digunakan untuk menentukan sampel dalam penelitian adalah : Pertama penulis membatasi sampel sebanyak 33 negara sebagaimana penelitian Atwood et al. (2010) untuk dapat mengestimasi required book- tax conformity. Kedua penulis membatasi sampel sebanyak 22 negara sebagaimana penelitian Towwers Parrin (2005) untuk dapat mengestimasi CEO Variabel pay Laporan laba rugi perusahaan selama tiga tahun yang memiliki laba positive sebelum pos luar biasa untuk menghitung tax aggressiveness. Menghapus perusahaan dari negara-negara yang tidak memiliki sedikitnya 20 perusahaan. Setelah dilakukan seleksi terhadap sampel diperoleh total akhir sampel sebanyak 69.301 perusahaan dari 22 negara.

TABLE 1 Sample Composition and Median Characteristics by Country

TABLE 1 (Lanjutan)

HASIL PENELITIAN Penelitian ini menggunakan permodelan regresi karena tujan dari penelitian ini adalah untuk mengetahui hubungan yang terjadi antara variabel terikat dengan satu atau lebih variabel bebas. Teknik pengolahan data yang digunakan dalam penelitian ini yaitu menggunakan regresi data panel. Sebelum dilakukan regresi, terlebih dahulu penulis melakukan uji collinearity dan multikolinearitas dengan melakukan pemeriksaan terhadap nilai Variance Inflatation Faktor (VIF), dan setelah diuji hasil menunjukkan tidak terjadi masalah multikolinearitas

TABLE 2 Descriptive Statistics and Correlations

TABLE 2 Descriptive Statistics and Correlations

TABLE 2 (Lanjutan)

TABLE 3 Tax Avoidance Regressions

TABLE 4 Tax Avoidance Regressions with Equity Compensation Interactions

TABLE 5 Tax Avoidance Regressions with Controls for Accruals Components

TABLE 5 (Lanjutan)

Analisis Sensitivitas Dalam memperkuat bukti penerimaan hipotesis maka dilakukan robustness tests dengan menggunakan beberapa sampel penelitian: Pengujian dengan menggunakan keseluruhan sampel untuk melihat pengaruh penghindaran pajak dengan variabel yang digunakan adalah laba sebelum pajak sebelum pos luar biasa dan menghasilkan data yang signifikan. Melakukan uji antara penghindaran pajak dengan karakteristik sistem pajak dengan mengurangi sampel perusahaan multinasional diperoleh hasil BTaxC dan TaxEnf signifikan namun koeefesien WW tidak signifikan. Melakukan uji hanya memasukkan perusahaan multinasional diperoleh hasil WW dan TaxEnf signifikan, BTaxC memiliki hubungan negatif dengan tax avoidance.

KESIMPULAN Tujuan penelitian adalah untuk menguji Bagaimana pengaruh karakteristik sistem pajak yaitu kesesuaian antara laba akuntansi dengan laba fiskal (book tax conformity - BTC) dengan pendekatan teritorial dan worldwide dan penegakan hukum pajak terhadap penghindaran pajak (Tax Avoidance). Hasil penelitian menunjukkan bahwa perusahaan-perusahaan dinegara- negara yang memiliki karakteristik BTC rendah dan penegakan hukum yang rendah cendrung melakukan penghindaran pajak. Penghindaran pajak juga berhubungan dengan karakteristik perusahaan di suatu negara dalam menerapkan sistem kompensasi terhadap manajemen yang terkait dengan variabel gaji (seperti bonus, saham, dan opsi saham). Hasil penelitian menunjukkan bahwa, selain faktor spesifik perusahaan yang menjadi variabel independen pada penelitian sebelumnya yaitu performance, size, intangibles, debt financing, dan precence of multinational operations yang memiliki pengaruh terhadap penghindaran pajak, ternyata penghindaran pajak didorong oleh karakteristik sistem pajak di suatu negara dan interaksi antara karakteristik dan struktur kontrak kompensasi manajemen.

IMPLIKASI PENELITIAN Penelitian ini memberikan kontribusi pada: Otoritas pajak (negara) Memberikan kontribusi dalam terkait dengan upaya yang dilakukan oleh suatu negara untuk meminimilisasi penghindaran pajak yaitu diantaranya dengan cara: Negara harus melaksanakan penegakan hukum yang kuat. Lebih memperhatikan kebijakan yang berhubungan dengan kesesuaian antara antara laba akuntansi dengan laba fiskal (book tax conformity - BTC) 2. Perusahaan lebih memperhatikan kontrak kompensasi dengan manajemen karena hal tersebut dapat berdampak pada terjadinya tax avoidance.

Overview Tax Research A review of Tax Research, Michelle Hanlon and Shane Heitzman, Journal of Accounting and Economics (2010) (50) 127-178. Research in accounting for income taxes, John R.Graham, Jana S.Raedy , Douglas A.Shackelford Journal of Accounting and Economics (2011) Nov. 412-434. The Future of tax Reserach: From an Accounting Proffessor’s Perspective, Terry Shevlin, the Journal of the American Taxation Association, Fall 2007; 87 Empirical tax research in accounting Douglas, “A.Shackelford, Terry Shevlin, Journal of Accounting and Economics (2001) 321-387.

BTD & ETR Determinants of the Variability in Corporate Effective Tax Rates, Evidence from Longitudinal Data, Sanjay Gupta and Kaye Newberry, Journal of Accounting and Public Policy, 16, (1997), 1-34. Tax Avoidance: Does Tax-Specific Industry Expertise Make a Difference?, Sean T. McGuire, Thomas C. Omer, Dechun Wang, The Accounting Review, Vol. 87, No. 3, 2012, pp. 975–1003. Determinants of the variability in corporate effective tax rates and tax reform: Evidence from Australia, Grant Richardson, Roman Lanis, Journal of Accounting and Public Poliy, 26, 689-704.

BTD & QUALITY OF INCOME Tax Avoidance, Large Positive Temporary Book-Tax Differences, and Earnings Persistence, Bradley Blaylock, Terry Shevlin, Ryan J. Wilson, The Accounting Review, Vol. 87, No. 1 (2012), pp. 91–120 Taxable Income as a Performance Measure:The Effects of Tax Planning and Earnings Quality, Benjamin C. Ayers, John Xuefeng Jiang and Stacie K Laplante, Contemporary Accounting Research, Vo 26, No 1 (Spring 2009) pp. 15-54 The Persistence and pricing of earning accrual, and cash flows when firms have large book tax difference, Michelle Hanlon, The Accounting Review, Vol 80 No 1, (2005) pp 137-166. The Persistence, Forecasting and Valuation Implication of Tax Change Component of Earnings, Ancrew P. Shmidt, The Accounting Review, May 2006:81 An uninteded consequence of book-tax conformity: A loss of earnings informativeness, Michelle Hanlon, Edward L. Maydew, Terry Shevlin, Journal of Accounting and Economics 46 (2008) 294-311.

BTD & ASET PRICING Uday Chandra and Byung T. Ro, The Association between Deferred Taxes and Common Stock Risk, Journal of Accounting and Public Policy, 16, 311-333 (1997)

Tax Avoidance & Earning Management Can book–tax differences capture earnings management and tax Management? Empirical evidence from China, Tanya Tang, Michael Firth, The International Journal of Accounting 46 (2011) 175–204. Tax Reporting Aggressiveness and Its Relation to Aggressive Financial Reporting, Mary Margaret Frank, Luann J. Lynch, Sonja Olhoft Rego, The Accounting Review, 2009, Vol 84 No 2 pp.467-496 Creating a Bigger Bath Using the Deferred Tax Valuation Allowance, Theodore E. Christensen, Gyung H. Paik and Earl K. Stice,Journal of Business Finance & Accounting, 35(5) & (6), 601–625, June/July 2008. Earning Management: New Evidence Based on Deferred Tax Expense, John Philips and Porton Pincus, Sonja Ofhoft Rego, The Accounting Review, Apr 2003:78. Dhaliwal, D., C Gleason, dan L. Mills. (2004). Last chance earnings management: using the tax expense to meet analysts’ forecasts, Contemporary Accounting Research 21 (2): 431-457.

Tax Behavior The impact of audit risk, materiality and severity on ethical decision making: An analysis of the perceptions of tax agents in Australia, Rex Marshall, Malcolm Smith, Robert Armstrong, Managerial Auditing Journal, 21 5, 2006, 497-519 Social responsibility, Machiavellianism and tax avoidance: A study of Hong Kong, tax professionals, William E. Shafer, Richard S. Simmons, Accounting, Auditing & Accountability Journal, Vol. 21 Iss: 5, (2008), pp. 695 – 720. The importance of faith: Tax Morale and religiosity, Benno Torgler, Journal of Economic Behavior & Organization, 2006:81-109 A Note on the Relation between Frames, Perceptions, and Taxpayer Behavior, Scot B. Jackson and Richard C. Hatfield, Contemporary Accounting Research Vol. 22 No. 1 (Spring 2005) pp. 145-64

Tax Avoidance, CG, CSR Tax avoidance, tax management and corporate social responsibility, Fariz Huseynov, Bonnie K. Klamn, Journal of Corporate Finance, 18 (2012), 804-827 Minnick, Kristina dan Tracy Noga. (2010). Do Corporate Governance Characteristics Influence Tax Management?. Journal of Corporate Finance, 16, 703-718

International Tax The determinants of thinly capitalized tax avoidance structures: Evidence from Australian firms, Grantley Taylora, Grant Richardsonb, Journal of International Accounting, Auditing and Taxation 22 (2013) 12– 25. The demand for tax haven operations, Mihir A. Desai, C. Fritz Foley, James R. Hines Jr. Journal of Public Economics 90 (2006) 513– 531. International Corporate Tax Avoidance Practices: Evidence from Australian Firms, Grantley Taylor and Grant Richarson, The International Journal of Accounting, 47 (2012) 469–496. Cross-Jurisdictional Income Shifting by U.S. Multinationals: Evidence from International Bond Offerings Kaye J. Newberry; Dan S. Dhaliwal Journal of Accounting Research, Vol. 39, No. 3. (Dec., 2001), pp. 643- 662.)

Book Tax Gap The Persistence and pricing of earning accrual, and cash flows when firms have large book tax difference, Michelle Hanlon, The Accounting Review, Vol 80 No 1, (2005) pp 137-166.

Book Tax Gap Tax Avoidance, Large Positive Temporary Book-Tax Differences, and Earnings Persistence, Bradley Blaylock, Terry Shevlin, Ryan J. Wilson, The Accounting Review, Vol. 87, No. 1 (2012), pp. 91–120 ABSTRACT: We investigate why temporary book-tax differences appear to serve as a useful signal of earnings persistence (Hanlon 2005). We first test and show that temporary book-tax differences provide incremental information over the magnitude of accruals for the persistence of earnings and accruals. We then opine that there are multiple potential sources of large positive book-tax differences. We predict and find that firms with large positive book-tax differences likely arising from upward earnings management (tax avoidance) exhibit lower (higher) earnings and accruals persistence than do other firms with large positive book-tax differences. Finally, we find significant variation in current-period earnings and accruals response coefficients and insignificant hedge returns in period tþ1, consistent with investors being able to look through to the source of large positive book-tax differences (earnings management and tax avoidance), allowing them to correctly price the persistence of accruals for these subsamples.

Book Tax Confirmity Atwood, T.J., Drake, M.S., & Myers, L.A. (2010). Book-tax conformity, earnings persistence and the association between earnings and future cash flows. Journal of Accounting and Economics, 50, 111–125. Calls for eliminating differences between accounting earnings and taxable income in the US have been debated extensively. Proponents of increased book-tax conformity argue that tax compliance will increase and earnings quality will improve. Opponents argue that earnings quality will decline. We examine whether the level of required book-tax conformity affects earnings persistence and the association between earnings and future cash flows. We develop a comprehensive book-tax conformity measure and find that earnings have lower persistence and a lower association with future cash flows when conformity is higher. Our evidence suggests that increased book-tax conformity may reduce earnings quality.

Book Tax Confirmity Home country tax system Characteristics and corporate tax avoidance: international Evidence, T.J. Atwood, Michael S. Drake, James N. Myers Linda A. Myers, The Accounting Review, ol 87, No 6 (2012) pp.1831-1860 We examine whether three tax system characteristics—required book-tax conformity, worldwide versus territorial approach, and perceived strength of enforcement— impact corporate tax avoidance across countries after controlling for firm-specific factors previously shown to be associated with tax avoidance (i.e., performance, size, operating costs, leverage, growth, the presence of multinational operations, and industry) and for other cross-country factors (i.e., statutory corporate tax rates, earnings volatility, and institutional factors). We find that, on average, firms avoid taxes less when required book-tax conformity is higher, a worldwide approach is used, and tax enforcement is perceived to be stronger. However, the relations between tax avoidance and all three tax systems characteristics are contextual and depend on the extent to which management compensation comes from variable pay, including bonuses, stock awards, and stock options.

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