PENGARUH LIKUIDITAS DAN LEVERAGE TERHADAP TAX AVOIDANCE PADA PERUSAHAAN ASURANSI YANG TERDAFTAR DI BURSA EFEK INDONESIA TAHUN 2020 - 2024

This study aims to: a) examine the effect of liquidity on tax avoidance in insurance companies listed on the Indonesia Stock Exchange (IDX) during the period 2020–2024; b) examine the effect of leverage on tax avoidance in insurance companies listed on the Indonesia Stock Exchange during the period 2020–2024; and c) examine the effect of liquidity and leverage on tax avoidance in insurance companies listed on the Indonesia Stock Exchange during the period 2020–2024. Liquidity is measured using the Current Ratio (CR), while leverage is measured using the Debt to Equity Ratio (DER). Tax avoidance in this study is proxied by the Effective Tax Rate (ETR). The method used in this study is a quantitative approach with multiple linear regression analysis. The data were obtained from the annual financial statements of insurance companies published on the official website of the Indonesia Stock Exchange (IDX), and the research sample was selected using purposive sampling. The results of the study show that liquidity affects tax avoidance, leverage affects tax avoidance, and both liquidity and leverage simultaneously affect tax avoidance. These findings indicate that a company’s internal financial condition plays a crucial role in shaping its tax compliance strategy.