Title: The role of tax risk management in international tax avoidance practices: evidence from Indonesia and Malaysia

Authors: Indah Masri; Akhmad Syakhroza; Ratna Wardhani; Samingun

Addresses: Accounting Department, Universitas Pancasila, Jakarta, 12640, Indonesia ' Accounting Department, University of Indonesia, Depok, 16424, Indonesia ' Accounting Department, University of Indonesia, Depok, 16424, Indonesia ' Accounting Department, University of Indonesia, Depok, 16424, Indonesia

Abstract: The aims of this research are to analyse the effect of international tax practices on tax avoidance, and the moderating effect of tax risk management. The results of the research show that international tax practices are a form of international tax avoidance in order to lower tax liabilities. The results also show that tax risk management can weaken the positive effect of international tax practices on tax avoidance, especially in the practice of thin capitalisation and multinationality. The research results contribute by proving that tax risk management is one of the controls used by multinational corporations in tax avoidance.

Keywords: tax risk management; international tax practices; tax avoidance; thin capitalisation; multinationality; tax havens.

DOI: 10.1504/IJTGM.2019.101561

International Journal of Trade and Global Markets, 2019 Vol.12 No.3/4, pp.311 - 322

Received: 01 Nov 2018
Accepted: 15 Jan 2019

Published online: 12 Aug 2019 *

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