The Effect of Transfer Pricing, Family Ownership, and Sales Growth on Tax Avoidance

Abstract

This study aims to provide empirical evidence regarding the impact of transfer pricing, family ownership, and sales growth on tax avoidance in energy sector companies listed on the Indonesia Stock Exchange (IDX) during the 2019–2023 period. This research employs a quantitative approach using secondary data obtained from companies’ annual financial reports. The population consisted of 83 companies, and the sample was selected through purposive sampling based on specific criteria, resulting in 10 companies observed over five years with a total of 50 observations. Data were analyzed using panel data regression, with the fixed effect model identified as the most appropriate model. Data processing was conducted using EViews version 13 and Microsoft Excel. The results indicate that transfer pricing, family ownership, and sales growth simultaneously influence tax avoidance. Partially, transfer pricing and sales growth have a significant effect on tax avoidance, while family ownership does not show a significant influence. These findings suggest that certain companies implement specific strategies to reduce their tax burden and provide important insights for regulators in developing more targeted and effective tax policies.