The Influence of Transfer Pricing Aggressiveness and Corporate Social Responsibility Disclosure on Tax Avoidance with Tax Haven as a Moderating Variable

Abstract

This study aims to examine the influence of transfer pricing aggressiveness and corporate social responsibility (CSR) disclosure on tax avoidance, with tax haven use as a moderating variable. Data were collected from all manufacturing companies listed on the Indonesia Stock Exchange from 2020 to 2023. This study employs multiple linear regression analysis to test the research hypotheses and uses MRA (Moderated Regression Analysis) to test the moderating variable. The results show that transfer pricing aggressiveness has a positive effect on tax avoidance, and CSR disclosure is negatively related to tax avoidance. Additionally, the tax haven strengthens the positive effect of the relationship between transfer pricing aggressiveness and tax avoidance. Moreover, it also strengthens the negative effect of CSR disclosure on tax avoidance. These findings indicate that tax havens play a significant role when companies engage in tax avoidance through transfer pricing schemes. This study contributes to the body of knowledge on concepts and theories related to the variables examined by the author.