CORPORATE SOCIAL RESPONSIBILITY AND TAX AGGRESSIVENESS IN PERSPECTIVE LEGITIMACY THEORY

The company as a business entity seeks to provide high dividends for shareholders. On the other hand as a corporate taxpayer, the company must set aside profits to pay taxes. Tax aggressiveness can be used to minimize this conflict. However, this action is not favored by shareholders because it can damage the company's reputation. With reference to legitimacy theory, corporate social responsibility (CSR) is considered as an action that can maintain the company's reputation. The question is whether corporate social responsibility influences tax aggressiveness. In fact the results of research on this subject are varied. This study aims to reexamine the effect of corporate social responsibility, from economic, social, and environmental dimensions towards tax aggressiveness. The test was conducted using 62 data from 31 companies listed on the Indonesia Stock Exchange during 2016-2017. Effective tax rate (ETR) is used to measure tax aggressiveness; CSR is measured using the valuation standard Global Reporting Initiative (GRI) 04. The results of the study stated that CSR economic dimensions have a positive effect on tax aggressiveness, whereas CSR social and environmental dimensions negatively affect tax aggressiveness. Recommendations, tax authorities can use the disclosure of environmental and social dimensions as an indication of the practice of tax aggressiveness.


Introductoion
Taxes are the biggest contributor to the State Budget (APBN), although Indonesia's tax ratio compared to other Asean countries is still low. In 2017 the contribution of the tax sector, specifically income tax (PPH) reached 52.6% of total state revenue (Ministry of Finance, 2017). This is shown in table 1.1 below. aggressiveness. This is in line with research  where the results of the study show that CSR economic dimensions have a positive effect on tax aggressiveness and CSR social dimensions negatively affect tax aggressiveness.

Literature Review and Hypothesis 2.1 Legitimacy Theory
Legitimacy theory is a company management system that is oriented to alignment with individuals, society and the government (Gray, Kouhy, & Lavers, 2012). Meanwhile, according to (Purwanggono, 2015) the theory of legitimacy is an assessment or opinion given by the community to the company, in this case the goals to be achieved by the company. (Octaviana, 2014) states that there are two dimensions so that the company can get legitimacy support from the community. First, the company's organizational activities must be congruent with the value system in the community. Second, the reporting of company activities should also reflect social values. This theory tries to explain, when there is a difference between the activities carried out by the company and what is expected by the community, then management can use disclosure media. This action is a form of company statement that they have done what was expected (Lanis & Richardson, 2013). This disclosure is done to reduce community concerns and ensure that the company has a concern for the community. This theory wants to explain the relationship between public awareness and disclosure by the company. In the perspective of legitimacy theory, companies will try to get recognition from the public. By way of carrying out activities in accordance with the norms that apply to the community in operating environment. The existence of a company is not solely to fulfill the wishes of shareholders but also the community in its operating environment. This condition will improve the company's image in the eyes of the public.

Tax aggressiveness
Tax aggressiveness is a tax avoidance activity where companies are involved in efforts to reduce effective tax rates (Harjito, Sari, & Yulianto, 2017). While what was stated by (Indrajati, Djumena, & Yuniarwati, 2017) tax aggressiveness is an act of manipulation of taxable income through tax planning actions. The tax planning action is the initial stage for systematically analyzing various alternative tax treatments with the aim of achieving the fulfillment of minimum tax obligations (Wijayanti, Wijayanti, & Samrotun, 2016). Legal tax planning is called tax avoidance (Agustina & Aris, 2016). Tax aggressiveness is included in tax avoidance which is not permitted. Where, the strategy taken is not in accordance with the expectations of the community and the government (Lanis & Richardson, 2013). The government as tax recipient is disadvantaged by the act of tax aggressiveness because it can reduce revenue for the development of people's welfare. As for the community, the impact resulting from tax aggressiveness is that the community does not fully obtain and feel adequate facilities and support the welfare provided by the government (Cahyani, 2016).
Tax avoidance actions can pose risks for companies such as fines or loss of company reputation (Pradipta & Supriyadi, 2016). Tax aggressiveness carried out can provide advantages and disadvantages for the company. The advantage obtained is to maximize the company's net profit and increase the distribution of cash to shareholders to be greater. The loss is the possibility of the company getting sanctions / penalties from tax authorities, and the decline in the company's stock price (Plorensia & Hardiningsih, 2015).

Corporate Social Responsibility (CSR) in the Economic Dimensions of Corporate Tax
Aggressiveness The economic dimension of CSR is a tool that raises managers' concerns in facing problems to all their stakeholders (Laguir, Stagliano, & Jamal, 2015). Managers are required to produce maximum profit in the distribution of maximum dividends. And demanded to be able to balance all the interests of its stakeholders one of which is the burden to carry out CSR programs in getting positive legitimacy from the community (Purnomo, 2016).
This expense raises the manager's intention to pay a minimum tax to cover CSR expenses by not reducing cash or dividends distributed to shareholders. This is supported by previous research conducted by  and (Laguir, Stagliano, & Jamal, 2015) which states that CSR economic dimensions have a significant positive effect on corporate tax avoidance (tax aggressiveness). Based on the description above, the hypothesis can be formulated as follows: H1: CSR economic dimension has a positive effect on tax aggressiveness

Corporate Social Responsibility (CSR) in the Environmental Dimensions of Corporate
Tax Aggressiveness CSR environmental dimension focuses on applying management to systematically manage the environmental impact of a company's operations in creating a product as a whole. Companies are required to be able to build credibility with external stakeholders and ensure that the principles of integrity and environmental protection have been carried out (Laguir, Stagliano, & Jamal, 2015).
The legitimacy theory explains that managers are directed to enhance CSR activities in the environmental dimension in building positive recognition or a good image that can benefit the company (Wibowo Agung, 2012). In obtaining positive legitimacy the company must pay attention to impacts related to inputs (such as energy and water) and output (such as emissions, waste and effluents). Impacts related to the process of making products and services, compliance with environmental obligations and costs in waste treatment must be spent to support the comfort and welfare of the community (GRI, 2018).
Corporate expenses in protecting the environment and supporting the welfare of the community make managers try to minimize the tax burden to support the cost of environmental improvement from the impact of the company's operations (Hadjoh & Sukartha, 2013). Previous research has linked the two CSR variables to the environmental dimension to tax aggressiveness. Research (Lanis & Richardson, 2013) revealed that companies that carry out tax aggressiveness are said to be environmentally responsible. Where in other studies (Laguir, Stagliano, & Jamal, 2015) stated that CSR environmental dimensions do not affect the actions of corporate tax aggressiveness. Based on the description above, the hypothesis can be formulated as follows: H2: CSR environmental dimension has a negative effect on tax aggressiveness

Corporate Social Responsibility (CSR) in the Social Dimensions of Corporate Tax
Aggressiveness (Muzakki & Darsono, 2015) states that in theory the legitimacy of the company will always try to create a balance between corporate values with social norms that exist in society. In supporting the sustainability of a good company or a good image, the company must be able to collaborate and establish relationships with internal and external company stakeholders (Cahyani, 2016).
The social dimension in CSR shows the company's concern in providing safety and comfort for employees. By prioritizing human rights to achieve prosperity, paying attention to the values 3. Companies that present all required data.

Variables Operationalization Tax aggressiveness
Tax aggressiveness in this study is the dependent variable (dependent). The main proxy for this research is the calculation of Effective Tax Rates (ETR). The lower the value of ETR produced by the company, the better it will be for the company because of its tax planning. While the higher the value of ETR, the company has been obedient in paying taxes. If the ETR has a value close to zero then it indicates the existence of tax aggressiveness (Indrajati, Djumena, & Yuniarwati, 2017). ETR = tax paid income before tax

Corporate Social Responsibility (CSR)
Corporate Social Responsibility (CSR) in this study uses a media check list that refers to the GRI 04 disclosure dimensions that have been adjusted to BAPEPAM No. regulation. VIII.G.2 regarding the company's annual sustainability report (Cahyani, 2016). The dimension items are divided into 3 dimensions and 91 items, namely 9 items of economic performance, 29 items of environmental performance, 14 items of labor practices, 9 items of human rights performance, 8 items of society and 9 items of product responsibility (Nugraha, 2015).  Table 4.2 above, tax aggressiveness has a minimum value of 0.00 and a maximum value of 0.55. This means that in the lowest tax payment period the company made 0.00 and the largest tax payable the company paid was 0.55 exceeding the corporate income tax rate of 25%. Where when the tax aggressiveness has a value close to zero, it indicates that the company is increasingly aggressive in tax planning. The average value of tax aggressiveness of 0.1152 means that the tax aggressiveness of the company is relatively higher because the result is close to the minimum value of tax aggressiveness of 0.00 or below the 25% corporate income tax rate.

Result Descriptive Analysis
Of the 31 sample companies that have been studied there are 29 companies that have a tax aggressiveness value below 25% or indicate the company has done an aggressive tax planning and the remaining 2 have a tax aggressiveness value above 25% which can be concluded that the company has been obedient in paying taxes. Std value The tax aggressiveness deviation of 0.13286 or greater than the mean value, this illustrates that the research data on tax aggressiveness in the period of 2 periods showed varied data.
CSR within 2 years is known to have an average value of 1.1916, which means that the sample companies in this study averaged 119-120 items of CSR. The minimum value of CSR economic, environmental and social dimensions in the sample companies is 0.92 and the maximum value is 1.40. it shows that all companies have fulfilled GRI 4 standard which states that the maximum value of the company in carrying out CSR economic, environmental and social dimensions is 182 items. Std value The CSR deviation of the economic, environmental and social dimensions is 0.10325 where the value is less than the mean value of 1.1916 which means the research data in the 2 CSR periods is less variable.

Classic Assumption Test Uji Autokorelasi
Autocorrelation testing aims to determine the existence of autocorrelation in the period 2016 and 2017. This test is done through the Durbin-Watson test method and the test results are shown in the table below. Based on the autocorrelation test results in table 4.4 above, it is known that the Durbin-Watson statistical value is 2.048. Where the Durbin-Watson statistical value is determined within the autocorrelation limit dU <DW <(4-dU), it is known that the lower boundary value (dL) is 1.222 and the upper limit value (dU) is 1,650, the implication is 1,650 <2,048 <2,350 2,350 values obtained from reduction results (4-1,650). From these results it shows that the regression model in this study does not have an autocorrelation problem.

Multicollinearity
Multicollinearity testing is conducted to determine whether in the linear regression model there are intercorrelations or collinearities between CSR economic, environmental, social dimensions. These results are seen in Based on the results of the multicollinearity test table 4.5 above, the Collinearity Statistics output shows the VIF CSR value of economic, environmental and social dimensions <10 and tolerance value> 0.10, so it can be concluded that the three dimensions do not have multicollinearity disturbance in the linear regression model.

Heteroscedasticity
Heteroscedasticity testing in the linear regression model is carried out to produce homoscedasticity data. This test uses a scatterplot test. Based on the scatterplot graph in Figure  4.1, it appears that the plot in the graph does not form a pattern or spread randomly. This shows that CSR residuals in the economic, environmental, social and tax aggressiveness dimensions have shown homoscedasticity.

Determination Coefficient Test
Testing the coefficient of determination is done to find out how much the value of CSR economic, environmental and social dimensions in influencing tax aggressiveness. The results of the coefficient of determination test can be seen in table 4.9 below: Based on the results of regression processing in table 4.9, the R Square determination coefficient value of 0.650 is obtained. This means that the economic, environmental and social dimensions of CSR have the ability to explain their effect on tax aggressiveness by 65%. While the remaining 35% is explained by other dimensions not included in this regression model such as profitability, inventory intensity, capital intensity, leverage and media exposure.

Significance Test of Individual Parameters (t Statistics Test)
T test is used to see whether CSR economic, environmental and social dimensions partially have a significant effect on tax aggressiveness. Based on the results of regression processing in table 4.10 below there are CSR coefficients of economic, environmental and social dimensions and constants to form linear regression equations. demonstrated by the company's compliance with paying taxes and not trying to carry out tax aggressiveness activities that can harm the country. Therefore, companies should carry out social responsibility through disclosure of performance in annual reports, to gain positive trust from the public (Ratmono & Sagala, 2015).

Environmental and Social Dimensions Influence Tax Aggressiveness
T test results from the environmental dimension of tax aggressiveness are significant negative. This shows that CSR environmental dimension can be used as an indication that the company is doing tax aggressiveness. The results of this study are different from the theory of legitimacy. In addition to being concerned with profits and increasing the wealth of shareholders, companies need to pay attention to environmental sustainability and the sustainability of the lives of surrounding communities to improve the good image of a company (Cahyani, 2016). The results of this study are not in line with research conducted by (Laguir, Stagliano, & Jamal, 2015) that CSR environmental dimension does not affect the company's tax aggressiveness where the results of the t value < t table is equal to 0.2029 <1.0509. The results of the β coefficient between the environmental dimensions of tax aggressiveness have a significant negative effect of 25.55%. This shows that the increase in the social dimension of CSR by companies encourages companies to carry out tax aggressiveness. Thus more and more companies are expressing staffing issues, industrial relations, and human rights, can be used as an indication that the company tends to avoid tax,

Conclusions, Limitations and Suggestions 5.1 Conclusions
Based on the results of the analysis conducted it can be concluded that: First, CSR economic dimensions have a positive effect on tax aggressiveness, it means that more disclosure of CSR economic dimensions will increase the value of the company's ETR. This means that corporate economic dimension CSR will reduce corporate tax aggressiveness. Therefore, more and more information about the economic value, the usefulness of infrastructure built, and the use of local resources revealed, can reduce the level of corporate planning for tax aggressiveness. Second, CSR environmental and social dimensions negatively affect ETR. The better the environmental dimension of CSR carried out by the company is indicated to increase the desire to carry out tax aggressiveness. This is contrary to the theory of legitimacy where companies that have good environmental responsibilities will reduce actions that can harm society.

Limitations
The discussion on CSR only refers to the theory, not looking at how laws and government regulations govern CSR for companies, especially mines. Tax aggressiveness is proxied by ETR, with the weakness of the ETR value can be positive or negative. So caution is needed in concluding positive and negative influences. A more accurate alternative is the ubnormal book tax difference. Even though this study uses data from mining companies (required to carry out CSR), only those listed on the Indonesia Stock Exchange (IDX).

Suggestions
For tax authorities, the results of this study can be used as an indication that the more disclosure of CSR environmental and social dimensions expressed in annual reports, there is a tendency for