The influence of the Risk Management Committee, the Independent Board of Commissioners, the Audit Committee, Capital Intensity, and the concentration of ownership on the aggressiveness of corporate taxes

Abstract

Tax aggressiveness is an act of reducing the burden of income tax through legal or illegal methods, which can harm the state because it reduces tax revenue. This study aims to examine the influence of risk management committees, independent board of commissioners, audit committees, capital intensity, and ownership concentration on tax aggressiveness. The population in this study is manufacturing sector companies listed on the Indonesia Stock Exchange (IDX) for the 2020–2023 period. Samples were selected using purposive sampling techniques, resulting in 249 observational data. Secondary data in the form of annual reports and sustainability reports were analyzed using multiple regression methods using SPSS version 26. The results of the study showed that independent board of commissioners, audit committee, and ownership concentration had no significant effect on tax aggressiveness. On the other hand, the risk management and capital intensity committees showed a significant influence on tax aggressiveness. These findings suggest that risk management committees play an important role in identifying and managing risks, while capital intensity reflects the level of investment companies that influence strategic decisions. Thus, these two variables can be effective tools to suppress tax aggressiveness practices and increase transparency and accountability of financial reporting. This research makes a theoretical contribution to the literature on corporate governance and tax aggressiveness, and indicates the need to strengthen the role of risk management and capital intensity management committees in business practice.