Ilomata International Journal of Tax and Accounting

The Reasons Why Accounting Student (Not) Pursuing Public Accounting Profession: A Systematic Literature Review

Diajeng Fitri Wulan — 2023-10-20

The accounting industry is considered a good career choice and the ideal outcome for accounting graduates. However, the number of public accountants has decreased recently. The public accounting profession is declining due to several causes, including the need for more laws and legal protection for the industry, accounting reporting, and the small market share for audit services. The identification, screening, and selection phases of the systematic literature review process were used in this study to review previous research. The data analysis utilized in this study was predicated on the basis of the 21 papers that were found in the Google Scholar database and dated from 2006 to 2023. Students' decisions to pursue a career in public accounting are influenced by a number of different factors, according to the findings of a comprehensive evaluation of all of the research that was published between the years 2006 and 2023. Academics less frequently use regression to manage data than SEM analysis. Future research is expected to concentrate mainly on extending the use of variables as a factor influencing students' motivation to become public accountants and the approaches used

Input-Output Analysis: Which Tax Incentive for Natural Resources Downstream Is Suitable for Indonesian Economy?

Destiny Wulandari — 2023-10-20

Indonesian government's policy to promote downstream natural resources leads to tax incentives policy intended to encourage the downstream. This study focuses on corporate income tax incentives in the form of net income reduction (tax allowance according to Article 31A of the Income Tax Law) by 30 percent for 6 years or corporate income tax reduction (tax holiday according to Minister of Finance Regulation Number 130/PMK.010 /2020) by 100 percent or 50 percent. Despite the positive or negative impact of tax incentives enactment argued in the previous studies, this study will calculate the impact on the economy provided by the mentioned tax incentive schemes quantitatively and will analyze which tax incentive scheme gives the greater impact on the economy. The analysis was carried out by using input-output analysis method to calculate the impact from output approach on secondary data in the form of the latest input output table released by Badan Pusat Statistik i.e., 2016 input output table. The result of the study shows that tax incentive in the form of tax holiday with income tax reduction by 100 percent provides greater impact on the economy than the others do. The total impact is getting greater and shows comparable results as the tax incentive rate increases. However, the result of this study implies that the implementation of tax incentives still needs the right tax incentive policy design to gain the expected results.

Fringe Benefits in Tax Law: Matching Principle and Tax Justice Perspective

Heriantonius Silalahi — 2023-10-20

This study addresses a significant issue within Indonesia's income tax policy, focusing on the taxation of fringe benefits and non-monetary compensations. Fringe benefits, being non-monetary rewards granted to employees, have gained prominence in various sectors' remuneration structures. The evolving landscape of in-kind taxation, encompassing natural elements, prompts inquiries into the determinants of tax imposition choices and their equity ramifications. The study aims to explore the income tax perspective on fringe benefits and non-monetary gains, emphasizing the applicability of the matching principle and its implications for equitable taxation. Despite the rising importance of fringe benefits, scholarly discourse on the alignment of conformity principles with in-kind taxes remains sparse. Therefore, this study offers a fresh contribution in comprehending this matter. Employing both a policy analysis and taxation approach, the study draws data from literature, tax statutes, and the latest economic reports. The findings underscore the significance of integrating the conformity principle in the taxation of fringe benefits and non-monetary rewards. This integration can augment the efficiency and transparency of state financial management, curbing detrimental tax avoidance practices that undercut state revenue. In summary, this study validates that adopting the conformity principle in taxing fringe benefits and non-monetary gains holds the potential to bolster state revenue and enhance fiscal management efficiency. The research's implications can guide policy makers in refining the national tax framework and fostering equitable taxation in Indonesia.

Determinants of Occupational Health and Safety Disclosure: An Empirical Study of Property, Real Estate, and Building Construction Companies on IDX

Sindy Astuti — 2023-10-20

Occupational Health and Safety Disclosure (OHSD) is essential to provide the public and stakeholders with more information about a company. In particular, OHSD still needs further research because the work accidents in Indonesia are currently excessive, but not all companies disclose it. OHSD is also crucial for corporate sustainability. The primary objective of this study is to conduct an empirical study of the impact of Profitability, Leverage, and The Size of the Board of Commissioners on OHSD. The research method used in this study is quantitative and secondary data obtained from the annual reports and sustainability reports of the property, real estate, and building construction companies listed on the Indonesia Stock Exchange (IDX) from 2019 to 2021. The sampling technique used is purposive sampling, with 81 samples. Data analysis used panel data regression with a Random Effect Model (REM). The study concluded that Profitability and Leverage (DER) significantly and positively affect OHSD. However, the size of the Board of Commissioners has a negative and significant effect on OHSD. The research results imply the Occupational Health and Safety Disclosure as material for preparing company policies. For academics, this research is expected to expand the financial accounting literature on OHSD from the stakeholder theory perspective.

Village Fund Accounting Model in Realizing Nagari Financial Accountability

Armel Yentifa — 2023-10-20

This study aims to create an accrual-based accounting model for the Nagari Government. The research method used in obtaining data is observation and interviews while analyzing data using qualitative analysis, namely analysis using an accrual-based accounting model based on Minister of Home Affairs Regulation Number 20 of 2018 concerning the Application of Accrual-Based Government Accounting Standards in village financial management. The analysis results show that since issuing Minister of Home Affairs Regulation Number 20 of 2018 concerning the Application of Accrual-Based Government Accounting Standards in Village Financial Management until the end of 2022, it has not been optimal in preparing accrual-based Nagari Government financial reports. This happens because the apparatus resources must still be ready to implement accrual-based accounting. In addition, the formats used as tools in accrual-based accounting records are more complete, so it is necessary to design a model that the village apparatus can understand. It is hoped that through this research, the implementation of accrual-based accounting can be further improved so that accountability in managing village funds can be achieved as expected.

The Influence of Audit Opinion, Auditor Switching, and Number of Audit Committees on Audit Report Lag

Brandon Christian Tomasila — 2023-10-20

Despite the fact that listed firms must abide by standards set forth by the Indonesia Stock Exchange (IDX) to submit audited financial reports and publish them, it has not reduced the number of companies that do not publish their financial reports in accordance with the applicable rules. As of February 2023, a total of 32 issuers have been sanctioned for late publication of their financial reports. A high audit report lag Table results in inaccurate and outdated financial information. This research's main goal is to prove how the number of audit committees, the number of audit opinions, and auditor change may affect how long it takes to produce an audit report. A quantitative research approach utilizing secondary data is employed for this investigation. The research focuses on manufacturing and transportation firms publicly traded on the IDX during the years 2020-2021. The sample size encompasses 160 companies, spanning a 2-year research period and yielding 320 data points. The analysis' conclusions show that audit opinion has a big impact on the audit report lag; in contrast, auditor switching and the number of audit committees do not have a substantial influence on this duration. The researcher recommends that future studies consider broadening the scope of the research population to enhance result accuracy and incorporate a more diverse sample.

The Influence of Financial Literacy and Educational Background on the Financial Governance of Nagari Owned Enterprises

Wiwik Andriani — 2023-10-20

Initial observations carried out at Nagari-Owned Enterprises (BUMNag) in Nagari Z found that BUMNag managers' understanding of good financial governance still needed to be improved, causing the financial governance of BUMNag in Nagari Z not to be improved. This is due to a need for more training regarding financial literacy and a mismatch in the educational background of the BUMNag managers. This research aims to determine and analyze the influence of financial literacy and educational background on financial governance in Nagari-owned enterprises (BUMNag) in Nagari Z. The approach used in this research is quantitative with a survey method. The data used in this research is primary data obtained from distributing questionnaires to managers of Nagari-owned enterprises in Nagari Z with 83 respondents. The sampling method used in this research is the stratified random sampling method. The research results show that financial literacy and educational background partially influence the financial governance of BUMNag in Nagari Z. In line with these results, financial literacy and educational background simultaneously influence the financial governance of BUMNag in Nagari Z.

The Impact of Tax Socialization and the Stringency of Tax Sanctions on Taxpayer Compliance Among Business Owners in the Lembang Area

Oktaviani Silaen — 2023-10-26

This research was conducted to determine the effect of tax socialization and the strictness of tax sanctions on compliance by taxpayers who own a business. The population in this study are taxpayers who have businesses in the Lembang area. The quantitative method was used in this study, with primary data obtained from the questionnaire results. Selection of the sample in this study using the method of Purposive Sampling, with a total sample of 50. Descriptive statistical tests were carried out using the SPSS version 29 program. The results showed that tax socialization did not significantly affect the compliance of taxpayers who own businesses in the Lembang area, with a test number of 0.432 < 2.01174. In contrast, the strictness of tax sanctions significantly affected the compliance of taxpayers who have businesses in the Lembang area with a test number of 0.000 < 2.01174. This study shows that the socialization of taxation and the strictness of tax sanctions significantly affect the compliance of taxpayers who have businesses in the Lembang area with a significance level of 0.000 <0.05.

The Influence of Operational Costs on Operating Income and Interest Rates on Non-Performing Loans in Banking Companies listed on thei Indonesian Stock Exchange

Rani Safitri — 2023-10-26

This study aims to analyze the effect of operational costs on operational income and interest rates on non-performingiloans in banking companies on the Indonesian Stock Exchange. iThe population in this study are banking companies on the Indonesia Stock Exchange for 2018 - 2022 with a totaliof 150 companies and a total sample of 30 companies. iThe sampling technique was purposive sampling. iThe data collection technique documentation is used from financial reports published on the IDX's official website, namely www.idx.co.id. iThe analysis used is multiple linear regression analysis with panel data. The results of this research show that operational costs on operational income have a significant positive effect on non-performing loans, This means that operational costs on operational income have not been able to minimize the level of non-performing loans, thus causing an increase in non-performing loans. while interest rates do not affect non-performing loans, which means that the interest rate position does not influence non-performing loans.

Dimensions in the Adoption of Philippine Tax E-Payment Channels in Paying Income Taxes Among Individual Taxpayers

Lord Eddie I. Aguilar — 2023-10-26

Time has entered the digitized era where electronic systems have penetrated transactions, including taxation, simplifying processes among taxpayers for better revenue collection. With the aim of helping tax authorities in administering revenue collection, the study determines the factors influencing the adoption of the Philippines tax e-payment channels in paying income taxes among individual taxpayers and develop a research framework that illustrates the relevance and structure of the extracted factors. Using the Technology Acceptance Model (TAM) and the Unified Theory of Acceptance and Use of Technology (UTAUT) as a guide model, the study applies the quantitative research method as the research design. The assumption of the adoption of e-payment channels in paying income taxes among individual taxpayers is multifaceted that is based on the perception of the relative technology system. An Exploratory Factor Analysis (EFA) was employed to analyze a dataset of 110 respondents using random sampling collected through modified questionnaires. The study revealed that perceived usefulness, perceived benefit, perceived trust, social influence, facilitating conditions, and perceived cost influence the adoption of the BIR e-payment channels in paying income taxes among individual taxpayers in Davao City.

Gender Diversity and Sustainability Performance: The Role of Financial Technology Adoption as Moderator

Dwiyanjana Santyo Nugroho — 2023-10-26

This research is intended to explore the influence of gender diversity on financial and bank environmental performance. In addition, in order to strengthen the impact of gender diversity on financial performance and environmental performance, this research also tests the moderating effect of financial technology adoption. The population in this study examines banks that received the 2022 Digital Banking Awards, which is the research period from 2017-2022. The proportion of women on the Board of Commissioners and the Board of Directors is a proxy for gender diversity. This research method uses random effect models and fixed effect models in regression equations that test financial performance. Meanwhile, the regression model that tests environmental performance uses logit regression. This study shows that the percentage of females on boards has an impact on financial results, but not on environmental performance. The financial and environmental performance is not affected by the gender ratio in the board of directors. Other results show that, although financial technology can enhance the influence of women's representation on boards regarding environmental performance, but it does not have an impact on financial performance. On the other hand, the impact on financial and environmental performance of the proportion of women on the board of directors is not reduced by the adoption of financial technology. The implications of these findings provide input for regulators to determine the threshold for women's involvement on the board of directors.

Financial Performance as a Mediation of Tax Avoidance Determinants in LQ45 Companies on the Indonesia Stock Exchange

Khairul Azwar — 2023-10-26

Taxes are the main source of revenue in the State Budget (APBN) which accounted for 73% of all state revenue in 2019. Taxes have such an important role in sustaining the continuity of government and development. However, realized tax receipts never reached the target level between 2009 and 2020.This is because there are companies that carry out tax avoidance actions. The purpose of this study is to specifically analyze the variables that affect tax evasion in the LQ45 index companies of the Indonesian Stock Exchange. This research was conducted during the period 2017 –2022. The sampling technique used in this study is purposive sampling, in which criteria are determined based on the variables studied. The data analysis technique used is multiple simple linear regression analysis and a residual test for moderating variables. The F-test results show that institutional ownership, sales growth and Ln_total assets have a positive and insignificant effect on tax evasion. T-test results show that institutional ownership and sales growth have a negative and insignificant effect on tax evasion. However, Ln-Total_Asset has a negative and significant effect on tax evasion.

The Effect of Management Knowledge Influences the Preparation of MSMEs Financial Statements

Hikmahwati — 2023-10-28

The rapid development of the MSME sector shows that there is great potential if this can be managed and developed well which will certainly be able to create strong micro, small and medium enterprises. The main problem in developing MSMEs is related to presenting financial reports. The inability to present quality financial reports is one of the weaknesses of management. This condition also occurs among MSME business actors in Banjarmasin. This has an impact on the difficulty of MSME actors in evaluating their operational performance. There is still not much research related to management knowledge in preparing financial reports for MSME players. So the aim of this research is to analyze how management knowledge influences the preparation of MSME financial reports in Banjarmasin City. The population of this research is MSMEs registered with the Banjarmasin City Cooperative and Industrial Service. Takes the form of a descriptive quantitative approach. The method used is Linear Regression, namely testing the Goodness and Fit Model, the feasibility of this model can be seen in the determination test (R-Square) and F Test. The results of the hypothesis test state that management knowledge influences the preparation of MSME financial reports in Banjarmasin City with a significance value (Sig ) is 0.000. The influence of management knowledge on the preparation of financial reports is 45.7%.

The Effect of Environmental, Social, and Governance (ESG) on Firm Performance With Earnings Management As a Moderation: Empirical Evidence Around COVID–19

Redho Rahcmatulloh — 2023-10-31

The primary goal of this research is to elucidate the influence of Environmental, Social, and Corporate Governance (ESG) performance on a company's overall performance. The research employs the ESG level as the independent variable for evaluation, which is the novelty of the study. The performance of the corporation is evaluated using various indicators, including financial performance (ROA), profitability (ROE), and Tobin's Q, which are regarded as reliant variables. Additionally, the study introduces the Modified by Jones Model of earnings management as a moderating factor. The analytical approach encompasses the application of multiple linear regression techniques. To ensure a representative sample, we conducted purposive sampling to select 120 observations from manufacturing companies listed on the Indonesian Stock Exchange that consistently maintained their ESG index during the period spanning from 2018 to 2022, including the turbulent period of the COVID-19 pandemic. The findings of this research reveal that the ESG index exerts a positive and statistically significant influence on ROA, ROE, and Tobin's Q. Furthermore, it is noteworthy that earnings management does not possess the capacity to moderate the relationship between ESG and company performance. The implications of this study are substantial, as it lends support to the application of legitimacy theory and agency theory in the context of ESG and corporate performance. However, it's important to acknowledge that the study's scope is limited to Indonesia, and consequently, the findings may not be directly applicable to other developing nations.

Analysis of Current Ratio, Debt Ratio, Net Profit Margin, and Total Asset Turnover Change in Income (Study of Multinational Companies Listed on the IDX for the 2020-2022 Period)

Sutri Handayani — 2023-10-31

A change in profit is a condition in which a company over a period of time has an increase or decrease in profits compared to the previous period. Failure to make a profit will seriously affect business operations. In the short term, losses may not matter unless the business suffers a substantial loss. The purpose of this research is to empirically examine if the ratios of current, debt, net profit margin, and total asset turnover have a significant impact on the growth of income for MNCs included in the IDX index between the years 2020 and 2022. This kind of study is quantitative and makes use of already collected data. For the years 2020-2022, this research focuses on American MNCs trading on the Indonesia Stock Exchange (IDX). A total of 68 samples were collected for this investigation through a purposive sampling strategy. Several different types of statistical tests (descriptive, multiple regression, traditional, and hypothesis) were utilized to analyze the data for this study. This research found that although changes in the Debt Ratio, Net Profit Ratio, and Total Asset Turnover did impact profits, Current Ratio no effect on profits. financial development. In addition, the findings demonstrate that the ratios of current, debt, net profit margin, and total asset turnover all have a synergistic impact on the rate at which income fluctuates.

The Influence of Profitability and Company Size on Tax Avoidance (A Case Study of Mining Companies Listed on the Indonesia Stock Exchange in 2018-2022)

Ridha Azka Raga — 2023-10-31

Tax avoidance is a deliberate strategic approach that companies employ to reduce their tax liabilities while remaining compliant with relevant tax regulations. The complexity of tax avoidance arises from its dual nature, where, on one side, it remains within the bounds of legality, and yet, on the other side, it is deemed undesirable by the government due to its adverse impact on national revenue. The objective of this research is to investigate how both the size and profitability of a company influence its engagement in tax avoidance between mining companies listed on the Indonesia Stock Exchange (BEI) from 2018 to 2022. This research utilized a descriptive quantitative methodology and for sample was selected through purposive sampling, identifying 14 companies meeting predefined criteria. The data collected was subjected to analysis using IBM SPSS Statistics 25, which included Classical Assumption Tests, Multiple Linear Regression Analysis, and Hypothesis Testing. The results of this study indicated a noteworthy impact of profitability on tax avoidance, while the size of the company did not demonstrate a significant influence on tax avoidance. Moreover, the observation revealed that the joint consideration of both profitability and company size had a significant impact on tax avoidance.

Evaluation of Tax Incentive Policy for MSMEs in the Covid-19 Pandemic Period in Improving Taxpayer Compliance at the Jakarta Kelapa Gading Primary Tax Service Office

Novianita Rulandari — 2023-10-31

Evaluation of Tax Incentive Policy for MSMEs in the Covid-19 Pandemic Period in Improving Taxpayer Compliance at the Jakarta Kelapa Gading Primary Tax Service Office based on evaluation criteria (William N. Dunn) from 6 criteria, namely effectiveness, efficiency, adequacy, equality, responsiveness, and accuracy has been running well and by the regulations. Taxation. Inhibiting entities in the implementation of MSME tax incentive policies are MSME actors, there are obstacles in the use of such incentives, namely in the preparation and submission of realization reports and obstacles also arise from the fissures who have difficulty guiding taxpayers and there are constraints in the administrative system. The driving entity in the implementation of MSME tax incentive policy is socialization through WhatsApp media and mail media by AR, confirmation and appeal of AR to taxpayers immediately submit realization reports, provide AR guidance to taxpayers in delivering realization reports if taxpayers experience obstacles, providing opportunities to TAXPAYERS PP 23/2018 during the December Tax Period to report on the realization of incentive use during 2020.

The Influence of Intellectual Capital, and Capital Structure on Financial Performance

Ahmad Ikbal — 2023-10-31

The primary aim of this study is to investigate how capital structure and intellectual capital affect the financial performance of banking institutions that are publicly traded on the Indonesia Stock Exchange over the period from 2018 to 2022. The research employed a purposive sampling approach to select its sample, resulting in the collection of 180 data observations from 36 companies over a five-year span. The analysis in this study was conducted using multiple linear regression techniques, utilizing IBM SPSS software for the analysis. The research findings indicate that capital structure does not exert a substantial impact on financial performance. In contrast, intellectual capital exhibits a notably positive influence on financial performance.

The Potential Financial Distress in Special Notation Companies on the Indonesia Stock Exchange: Prediction Model Approach

Wiwik Sugiarti — 2023-10-31

This research aims to predict the potential financial distress in companies with special notation on the Indonesia Stock Exchange during the period from January 1, 2021, to December 2022, using the Modified Altman Model (Z-Score) and the Springate Model (S-Score) approaches. Data for the study were obtained from the official website of the Indonesia Stock Exchange, employing purposive sampling as the sampling technique. Based on the criteria, a total of 280 research observations were obtained. The results indicate that both models can predict the potential financial distress of companies using financial ratios. Furthermore, the research findings reveal differences in the accuracy level of predicting potential financial distress between the Modified Altman Z-Score and Springate models. The Modified Altman Z-Score model demonstrates higher accuracy compared to the Springate model in predicting the potential financial distress of companies with special notation. This research provides important information for companies with special notation codes that experience financial distress, to immediately improve financial conditions, and provides a basis for strategic decision making to ensure the sustainability of the company and for investors and other interested parties can be used as a basis for investment decision making.

Analysis of Mutual Fund Investment Performance in the Ability to Regulate Higher Liquidity Increases in Indonesia

Azzam Fuadudin Dhiyaurrahman — 2023-10-31

One indication of inclusive liquidity or vice versa is to detect investment patterns. The research method is descriptive-quantitative. The population taken is mutual funds that are selected based on the best return in 2022 and those that are publicly published in the Financial Services Authority (OJK). Following are the results of an analysis of mutual fund investment performance in the ability to regulate a higher liquidity increase in Indonesia in 2022-2023. Fixed Income Mutual Funds: Syailendra Premium mutual funds show good performance in generating relatively stable returns. However, the Trimegah Fixed Income Plan mutual fund has a poor performance with higher volatility and lower returns. Index Funds: BNP Paribas Sri Kehati Mutual Funds show good performance with high returns and controlled volatility. The Allianz SRI KEHATI Index Fund mutual fund also performed well. However, Danareksa Index Syariah Mutual Funds showed poor performance and high risk in that period. Equity Funds: Schroder Dana Prestasi Plus mutual funds provide good returns with more controlled risk compared to stock market indices as a whole. The Sucorinvest Equity Fund mutual funds show poor performance with negative returns. Money Market Mutual Funds: Indonesian Sharia Money Market Major Mutual Funds can be a minimal choice. Likewise with the Sucorinvest Sharia Money Market Fund mutual funds. So in general terms, Index Funds and Money Market Mutual Funds show better performance than Fixed Income Mutual Funds and Mutual Funds in general.