The Influence of Tobacco Excise rates and Debt Costs on Tax Avoidance with Audit Quality as a Moderating Variable

Abstract

The purpose of this study is to examine the moderating role played by quality audit in the relationship between the tobacco excise rates, the cost of debt, and tax avoidance. Quantitative methods were used for this study. The study uses e Views version 10 to analyze data from 2010-2019, collected from a sample of roughly 40 records (four companies) in the IDX's tobacco sector. The results revealed that tobacco excise rates affect tax avoidance, furthermore, the quality audit can strengthen the moderating effect of tobacco excise rates on tax avoidance encircled to the Quasi Moderator category and is also consistent with the Theory of Planned Behaviour. On other hand If we use audit quality as a moderator, we find that the cost of debt has no effect on tax avoidance.