Cooperative Tax Avoidance: Evidence of Implementation of Agency Theory

  • Sugiyanto, Gijanto Purbo Suseno, Franklin Kharisma Genta, Anggi Andriani Rahayu


The purpose of this study is to examine the implementation of Agency Theory in cooperative business entities between owners (members) with management and management with the tax authority. Management is obliged to increase the welfare of members, through increasing the remaining business results (profitability). Internally it can be done by increasing cost efficiency, the effectivity of capital utilization and using debt. Externally management can make efforts to avoid tax legally. This study was designed using a quantitative approach in the form of panel data. The research data, 2015-2019, with the purposive sample sampling, research using path analysis with a sample of 100 companies in the eastern part of western Java. The results of this study indicate that cooperative management strives to increase profitability and carry out tax savings legally, to meet the expectations of members to improve their welfare, on the other hand, management, continues to fulfil its obligations in tax payments.