CEO Characteristics and Tax Avoidance: Niccolo Machiavelli Thinking

Abstract

Tax is one of the state revenues which has the biggest role in the Indonesian economy. Unaccomplished of tax revenues realization in Indonesia due to tax avoidance effort.  Decision making for tax avoidance is determined by decisions from top management, which is the director of the company or often also known as CEO (Chief Executive Officer). Therefore, decision making to avoid taxes is also influenced by the characteristics of the CEO of a company. The purpose of this article is to determine the relationship of the characteristics of the CEO with the understanding of the concept of power according to the philosopher Machiavelli, with the tax avoidance of a company. The results of this article are top management has an important influence on a company's decision making, and understanding the concept of power according to philosophers Machiavelli had a negative impact on the characteristics of the CEO in doing tax avoidance effort.