Abstract:

This paper analyzes the effect of family ownership and tax amnesty on tax avoidance practice in Indonesia. This study also tries to analyze the changes of tax avoidance practice after the tax amnesty program implemented on 2015-2016. The five-year test results (2013 to 2017) of forty-nine non-financial private firms who participated in the tax amnesty program show that the tax amnesty program has no significant effect on tax avoidance practice, while family ownership has a positive impact on tax avoidance practice. Based on the mean difference test, we found that tax avoidance does not change significantly before and after the implementation of the tax amnesty program. A similar analysis also shows that family firms tend to be more aggressive in practicing tax avoidance than non-family firms.