The Influence Of Corporate Income Tax, Tunneling Incentive, And Debt Convenant On Transfer Pricing Decisions With Tax Minimization As A Moderation
Keywords:
Corporate Income Tax; Debt Covenant; Tax Minimization; Transfer Pricing; Tunneling IncentivesAbstract
The aim of this research is to examine the effect of incentive tunneling, bonus mechanisms and debt covenants on transfer pricing. This research was also conducted to test the role of tax minimization in moderating the relationship between these variables. The research sample is manufacturing companies in the consumer goods sector listed on the Indonesia Stock Exchange in 2014-2018. This research used a purposive sampling method, with 110 observation data. The analytical method used is multiple linear regression. The research results show that only debt covenants are proven to be able to increase company transfer pricing. This research cannot prove that corporate income tax and tunneling incentives influence transfer pricing transaction decisions. Tax minimization is not proven to moderate the relationship between tunneling incentives, Corporate Income Tax, and debt covenants in transfer pricing transactions.
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