Last modified: 2017-12-22
Abstract
The purpose of this study is to analyze whether companies that perform financial derivative transactions have a higher tax avoidance from companies that do not perform financial derivative transactions. This study uses financial report data of non-financial companies listed on the Indonesia Stock Exchange (BEI). The results prove that the user has a higher ETR than non-users, which means it is not proven that companies that conduct financial derivative transactions have higher tax avoidance than companies that do not perform financial derivative transactions. Furthermore, when testing the fair value of financial derivatives using user samples, it is found that the fair value of derivatives has a significant negative effect on CURR-ETR and CASH-ETR except for GAAP-ETR. The results of this study prove that the higher the fair value of financial derivatives reported by the company then the rate of tax avoidance will increase.