Relationship between ownership structure and tax avoidance: a moderating role of audit report lag

This paper aims to find empirical evidence on how ownership affects tax avoidance and how audit quality moderates this relationship. This study chose family ownership to represent ownership structure since Indonesia has a unique setting of concentrated family ownership. The sample consisted of companies listed on the Indonesian Stock Exchange from 2018 to 2021. The data obtained were panel and secondary data from annual reports and financial statements. In this study, tax avoidance has two measures: ETR (effective tax rates) and SETR (statutory-effective tax rate gap). The finding suggests that a higher level of family ownership is associated with higher levels of tax avoidance. Additionally, the relationship between family ownership and tax avoidance is moderated by audit report lag (ARL). This study has policy implications for the government of Indonesia to consider crucial factors that can impact tax avoidance, such as ownership structures and audit report lag. By understanding these factors, policymakers can implement more targeted strategies to improve tax compliance and revenue collection. The social implication is that this study provides a better understanding of the importance of tax compliance and how ownership structures play a role in influencing it