This study aims to examine the effect of corporate tax avoidance to the corporate cash holdings. Recent tax avoidance research found that tax avoidance is able to facilitate managerial rent extraction in the form of transfer of resources owned by the company. This study attempts to test directly how the relationship of tax avoidance with the amount of cash held by the company using a quantitative analysis. The sample collected based on a purposive sampling method consists of 46 non-financial, non-property, non-real estate and non-construction companies with a period of research for eight years, from 2009-2016, with a total 368 observations. The study uses two different cash holdings measures to test the robustness of the research results. This study provides evidence that tax avoidance does not have a significant relationship to the level of cash holdings in companies that go public in Indonesia. Both measurements of cash holdings gave the same conclusions to the results of the study. The findings further confirm that tax avoidance does not have a significant effect on the level of firm cash holdings in Indonesian public companies.