Abstract:

This study examines the relationship between bankruptcy risk and tax avoidance, and the moderating effect of Board of Commissioners’ independence on the relationship. This study was conducted by taking a sample from a developing country i.e. Indonesia due to its specific characteristics related to tax regime. Data are collected from non –manufacturing public listed companies during 2014-2016. The results of the study show that there is a significant negative effect of the bankruptcy risk on tax avoidance. This study however cannot find the moderating effect of Board Commissioners’ independence on the negative effect of bankruptcy risk on tax avoidance. This study brings an implication specific to non-manufacturing companies related to the effect of bankruptcy risk on company’s tax avoidance.