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Tax is one of the largest state revenues so that the government
tries to maximize tax revenue but it is different from companies that want
to minimize taxes. In minimizing the tax, the company implements tax
avoidance. The company avoids tax due to the lack of internal supervision
of the company, therefore the need for a system that directs and regulates
the relationships of interested company side in making policies within the
company. The system is good corporate governance. The purpose of this
study was to determine the effect of good corporate governance on tax avoidance.
Good corporate governance in this study is proxied by executive compensation,
institutional ownership, managerial ownership, independent board
of commissioners, audit committee, and audit quality. Tax avoidance is
measured using the Cash Effective Tax Rate (CETR). The research sample
was 47 mining sector companies listed on the IDX in 2014–2019, and obtained
213 research data. The results in this study say that executive compensation
has a negative effect on tax avoidance, institutional ownership
and managerial ownership have a positive effect on tax avoidance and the
independent board of commissioners, audit committee, audit quality has no
effect on tax avoidance.
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