• Subagio Efendi Ministry of Finance of Republic of Indonesia
  • Salim Darmadi University of Technology Sydney
  • Robert Czernkowski University of Technology Sydney
Keywords: Financial firms, Tax aggressiveness, Tax avoidance method, Tax return


This study examines how financial firms’ tax aggressiveness differs from their peers in other sectors. Using confidential tax return data of the 5,968 largest Indonesian firms from 2009 to 2017, our study finds financial firms to have lower tax burdens relative to their non-financial counterparts, suggesting more opportunities for tax avoidance. Further, we document simultaneous use of tax shelters and temporary and permanent
differences between accounting standards and tax laws, indicating a tendency to use the most sophisticated and less costly techniques in minimising tax burdens. These findings suggest tax aggressiveness may be one important unintended consequence of the government’s conventional prudential policy.


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How to Cite
Efendi, S., Darmadi, S., & Czernkowski, R. (2022). ARE FINANCIAL INSTITUTIONS TAX AGGRESSIVE? EVIDENCE FROM CORPORATE TAX RETURN DATA. Buletin Ekonomi Moneter Dan Perbankan, 25(2), 173-202.