EFFECT OF AUDIT COMMITTEE CHARACTERISTICS ON TAX AVOIDANCE IN SOUTHEAST ASIA REGION

Abstract

The purpose of this research is to examine the influence of audit commit tee attributes on tax evasion, with a particular emphasis on Southeast Asia. The impetus for this investigation is the pervasive tax evasion strate gies and extremely low tax ratios observed in Southeast Asian countries. The magnitude, financial acumen, autonomy, gender representation, and age distribution of the audit committee are all taken into account when evaluating its attributes. Businesses publicly traded on the stock market of the respective nation between 2020 and 2022 and engaged in the mining industry in the Southeast Asian region comprise this study sample. The magnitude of the audit committee has a statistically significant positive effect on tax evasion, as demonstrated by panel data regression analysis. The audit committee's financial competence is essential for successfully implementing measures to prevent and reduce tax evasion. The independ ence of the audit committee has a substantial negative effect on tax eva sion. The considerable adverse impact on tax evasion results from the di verse composition of audit committees, which includes gender and age. This research improves our understanding of the potential for audit com mittee attributes to deter and ameliorate tax evasion activities in Southeast Asian countries. The results of this research have the potential to offer valuable insights to shareholders, investors, and regulators regarding the potential hazards associated with aggressive tax planning and the audit committee's responsibility in mitigating these risks as a component of ef fective corporate governance. The current research provides stakeholders with valuable insights into establishing audit committees by considering the key features that substantially impact tax evasion.