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This study aims to investigate the impact of Indonesian SFAS No. 50 and 55 (revised 2006) on the stock market’s ability to predict firms’ future earnings, which we refer to as stock price informativeness. Our proxy for the stock price informativeness is the forward earnings response coefficient, FERC. This study also investigated whether there is an increase in value-relevance of derivative financial instruments after the implementation of SFAS No. 50 and 55 (revised 2006) in Indonesia. This study found that: (1) the implementation of SFAS No. 50 and 55 (revised 2006) in financial firms which use derivative financial instruments, can increase the ERC but not increase the FERC, and; (2) After the implementation of SFAS No. 50 and 55 (revised 2006), the fair value of derivative financial instruments has significantly positive impact to the market value of equity. These findings suggest that the implementation of Indonesia SFAS No. 50 and 55 (revised 2006) has increased the transparency of derivative financial instrument.

This study aims to examine the effect of independent corporate governance organs activities (i.e. the level of busyness and political connections of independent corporate governance organs) on tax avoidance activities. By using a sample of manufacturing companies and panel data analysis, this study finds evidence that: (i) The busyness level of independent directors and audit committee have a positive effect on tax avoidance activities. This indicates that the more positions or jobs hold by independent directors and audit committees, thus their duties to monitor the company may be neglected and in turn they are unable to detect that the company is engaged in aggressive tax avoidance; (ii) Political connections of independent directors and audit committees have a positive effect on tax avoidance activities. This suggests that independent directors and audit committees can take advantage from their political connections to make a politics lobby that can reduce the corporate tax burden.

The purpose of this study is to investigate whether, in a case study of Indonesia, financial derivatives are used as a means of tax avoidance as literature shows that derivative users incline to avoid tax. Two samples treatment are conducted in examining the problem. Initially, using the sample all derivative users, this study does not find that derivative users are significantly related to tax avoidance. However, when the sample is separated into two groups based on the level of disclosure on financial derivatives, the results show otherwise. Firms with low level of disclosure on financial derivatives is more tax aggressive compared to those with high level of disclosure. These findings are shown by their lower ETRs (Effective Tax Rate) compared to other firms. Moreover, this study also examines the relationship between the use of financial derivatives with the level of tax avoidance. The results indicate that the use of financial derivatives is positively related to the level of tax avoidance. Results of this study are expected to have positive contribution on the development of tax policy in Indonesia, particularly for the tax on derivatives. Keywords: tax avoidance, financial derivatives, level of disclosure --- Tujuan dari penelitian ini adalah untuk menginvestigasi apakah derivatif keuangan digunakan sebagai sarana penghindaran pajak dalam studi kasus Indonesia karena sejumlah literatur menyatakan bahwa pengguna derivatif cenderung untuk menghindari pajak. Untuk menjawab permasalahan tersebut, dilakukan dua jenis perlakuan terhadap sampel penelitian. Pada awalnya, ketika menggunakan sampel semua pengguna derivatif, studi ini tidak menemukan bahwa pengguna derivatif secara signifikan berhubungan dengan penghindaran pajak. Namun, ketika sampel dipisahkan menjadi dua kelompok berdasarkan tingkat pengungkapan derivatif keuangan, hasil penelitian menunjukkan sebaliknya. Perusahaan dengan tingkat pengungkapan derivatif keuangan yang rendah memiliki agresivitas pajak yang lebih tinggi daripada perusahaan dengan tingkat pengungkapan derivatif keuangan yang tinggi. Temuan ini ditunjukkan oleh rendahnya ETR (tarif pajak efektif) perusahaan tersebut apabila dibandingkan dengan perusahaan lainnya. Selain itu, penelitian ini juga meneliti hubungan antara penggunaan derivatif keuangan dengan tingkat penghindaran pajak. Hasil penelitian menunjukkan bahwa penggunaan derivatif keuangan secara positif berhubungan dengan tingkat penghindaran pajak. Hasil penelitian diharapkan dapat memberikan kontribusi yang positif pada pengembangan kebijakan perpajakan di Indonesia, khususnya untuk pajak atas derivatif. Kata kunci: penghindaran pajak, derivatif keuangan, tingkat pengungkapan