Abstract:

This study aims to determine the effect of earnings management on tax avoidance through corporate social responsibility. The population of this study were companies listed on the Indonesia Stock Exchange (IDX) in 2015-2019, while the sampling method in this study used a purposive sampling method which then obtained 71 samples of companies. The analytical technique used in this study is using the SPSS version 20.0 program. The results of this study indicate that earnings management has no significant effect on CSR disclosure. However, earnings management has a significant positive effect on tax avoidance. Likewise, CSR disclosure has a significant negative effect on tax avoidance. The results of mediation in this study indicate that CSR disclosure is not able to significantly mediate in reducing the effect of earnings management on tax avoidance. This research has implications for policy makers about the importance of CSR in order to reduce tax avoidance. This research also brings theoretical implications, especially the relationship between CSR and tax avoidance