The role of tax risk management in international tax avoidance practices: Evidence from Indonesia and Malaysia

The aims of this research are to analyse the effect of international tax practices on tax avoidance, and the moderating effect of tax risk management. The results of the research show that international tax practices are a form of international tax avoidance in order to lower tax liabilities. The results also show that tax risk management can weaken the positive effect of international tax practices on tax avoidance, especially in the practice of thin capitalisation and multinationality. The research results contribute by proving that tax risk management is one of the controls used by multinational corporations in tax avoidance.