SALES GROWTH, FIRM SIZE, AND LEVERAGE IN TAX AVOIDANCE PRACTICES

Abstract

This research examines the effect of Sales Growth, Firm Size, and Leverage on Tax Avoidance in secondary manufacturing companies listed on the Indonesia Stock Exchange during the 2021–2023 period. This research uses a quantitative approach with multiple linear regression analysis methods to examine the relationship between variables in a structured and measurable way. The results showed that Sales Growth has a significant negative effect on Tax Avoidance, which means that increasing sales will reduce tax avoidance practices and encourage better tax compliance. Firm Size does not show a significant effect on Tax Avoidance, indicating that whether a company is large or small, its size alone does not determine the tendency to engage in such practices. Meanwhile, Leverage has a significant positive effect, implying that the higher the level of debt, the greater the tendency of companies to engage in tax avoidance strategies. Simultaneously, the three variables are proven to have a significant and meaningful effect on Tax Avoidance.