Analysis of Effect of Financial Reporting Aggressiveness Tax

Companies tend to show higher profits for the motivation to maintain the reputation of the stakeholders. And therefore companies often perform earnings management activities. But on the other hand the company must pay tax on the income earned in the state. With the obligation that companies often do aggressiveness tax by lowering its taxable income with a good tax planning. This study examines and analyzes the relationship between the aggressiveness of the financial reporting and tax aggressiveness. The sample was 29 companies listed in Indonesia Stock Exchange for the years 2011-2015 with a total of 145 observations firm-years. To test this research data using a classical assumption test, multiple linear regression, F test and t test. The results showed that there is no influence between financial reporting aggressiveness against the aggressiveness of the tax but have a positive relationship between the aggressiveness of the financial reporting and tax aggressiveness. This means tax management measures usually also accompanied by measures of earnings management so that the company's financial position looks good. The results of this study are also supported by the results of the data analysis by the coefficient of 0.017. Addition of four control variables used only 1 control variables that affect the tax agresiviatas Return on Assets. This means tax management measures usually also accompanied by measures of earnings management so that the company's financial position looks good. The results of this study are also supported by the results of the data analysis by the coefficient of 0.017. Addition of four control variables used only 1 control variables that affect the tax agresiviatas Return on Assets. This means tax management measures usually also accompanied by measures of earnings management so that the company's financial position looks good. The results of this study are also supported by the results of the data analysis by the coefficient of 0.017. Addition of four control variables used only 1 control variables that affect the tax agresiviatas Return on Assets.