EFFECT OF CORPORATE SOCIAL RESPONSIBILITY ( CSR ) , PROFITABILITY , AND PROFIT MANAGEMENT ON TAX EVASION

This study examines the effect of Corporate Social Responsibility (CSR), profitability, and profit management on tax evasion. We use manufacture company’s subsector food and beverage listed on the Indonesia Stock Exchange (BEI) during 2012-2016, based on purposive sampling method was obtained 8 companies. The indicators disclosure of CSR is using Global Reporting Initiative (GRI) guideline. Variable profitability is measured by a ratio of ROA, and profit management is measured by discretionary accrual. The dependent variable is proxy by CETR. We use multiple linear regression method. The result shows that the CSR and profitability have asignificant influenceon tax evasion. profit management does not have a significant influence on tax evasion.


INTRODUCTION
Tax is a contribution of the people to the State treasury based on the law (which can be forced) without receiving reciprocal services (counterachievements) which can be directly demonstrated and used to pay for public expenses (Mardiasmo, 2011). The definition shows that tax is a contribution imposed by the government, so it is prone to generate tax resistance from the taxpayer itself. According to Santoso and Rahayu (2013); Wardani (2013) Yunistiyani and Tahar, (2017) and Femitasari (2014) found that CSR had a significantly positive effect on tax evasion. However, it is different from the 60 results of the research conducted by Pradipta (2015) and Watson (2014) who found that CSR had a significant negative effect on tax evasion.
The second factor that affects tax avoidance is profitability. Profitability of a company describes the ability of a company to generate profits during a certain period at a certain level of sales, assets and share capital (Maharani, 2014). Profitability consists of several ratios, one of which is a return on assets (ROA). High profitability will make the company do a proper tax planning so that it produces optimal tax, this causes the tendency of companies to do tax evasion decreases (Heryuliani, 2015). The higher the profitability of a company, the lower the tax evasion by the company.
According to Ifanda (2016) profitability has a negative effect on corporate tax evasion. The results of this study are different from the results of research conducted by Dewinta and Setiawan (2016) and Rinaldi (2015) who found that profitability had a positive effect on tax evasion.
The third factor that affects tax evasion is profit management. WP The taxing entity considers taxes as a burden on companies whose tax amounts must be minimized because taxes can reduce the profits that the company gets.
Companies also tend to find ways to reduce the number of tax payments (Ngadiman and Puspitasari, 2014). Tax reduction by companies is one of the profit management carried out by the company (Yuwono, 2016 (Deny, 2017).
The contribution of this study is to provide empirical evidence about the impact of CSR, profitability, and earnings management on tax evasion actions, which can answer the differences in the results of previous studies.

Effect of CSR on Tax Evasion
Companies that are obliged to carry out CSR are companies that are directly related to natural resources. This explains that CSR carried out by the company is an obligation, just as taxes are imposed on the company (Dwilopa, 2016). The disclosure of CSR by the company in addition to providing a positive impact sometimes raises bias.
Many companies that provide CSR are precise to cover a variety of frauds committed, one of which is tax evasion (Yunistiyani and Tahar, 2017), because CSR activities carried out by the company can reduce profits that will be obtained by the company. This means that the greater the CSR activities carried out by the company, the higher the tax evasion actions carried out by the company. The results of research conducted by Yunistiyani and Tahar (2017), and Femitasari (2014) found that CSR had a significantly positive effect on tax evasion. Therefore, the hypothesis of this study is: H1: CSR has a positive effect on tax evasion.

Effect of Profitability on Tax Evasion
Companies that have a high level of profitability tend to obey the payment of taxes, while for companies that have a low level of profitability will not obey the payment of taxes in order to maintain the company's assets rather than having to pay taxes. High profitability makes the company do a proper tax planning so that it produces optimal tax, this causes the tendency of companies to reduce tax avoidance. This results in the higher the profitability of a company, the lower the tax evasion by the company. According to Ifanda (2016), Maharani (2014), and Tarigan (2016)

c. Profitability
Profitability is the company's ability to make profits from its business activities. The higher the profitability, the higher the CETR of a company.
Profitability is measured using profitability ratios, namely ROA (Sufiyanti and Wardani, 2016). ROA can show the company's ability to profit from the use of company assets, the higher the ROA ratio, the higher the profitability in the company (Tarigan, 2016). With the calculation formula as follows:   where CSR, profitability, and profit management on the dependent variable tax evasion will be proxied using CETR.

RESULTS AND DISCUSSION
CETR is cash that is spent on tax costs divided by pre-tax profit (Heryuliani, 2015). This finding supports the proposed hypothesis, namely, profitability has a negative effect on tax evasion.
3. Variable profit management shows that profit management variables have no effect on CETR or tax evasion.
This finding does not support the proposed hypothesis.