THE EFFECT OF CORPORATE GOVERNANCE ON TAX AVOIDANCE WITH CORPORATE SOCIAL RESPONSIBILITY AS MEDIATION

This research was conducted to analyze the relationship between corporate governance and tax avoidance, mediated by corporate social responsibility. Tax avoidance is the dependent variable measured by the effective tax rate (ETR), while corporate governance is the independent variable measured by the Corporate Governance Index (CGI-score). The mediating variable in this study is corporate social responsibility. The study also includes control variables such as firm size, return on asset, and leverage. This research sample is based on a sample of Indonesian companies listed on the Indonesian Stock Exchange (IDX) for the period 2017-2021. The survey sample that meets the criteria includes 60 companies with a total of 300 observational data collections. Research results show that corporate governance has a significant impact on tax avoidance, corporate governance has no significant impact on corporate social responsibility, corporate social responsibility has no significant impact on tax avoidance and corporate social responsibility is not able to mediate corporate governance and tax avoidance.