Tax avoidance can be interpreted as an effort made by a company to minimize the tax that must be borne in a legal way, namely by exploiting the weaknesses contained in the laws and regulations. Tax avoidance is a form of implementing efficiency for companies that is done legally due to loopholes in the Tax Law. This research was conducted to examine the effect of profitability, liquidity and leverage on tax avoidance disclosure. Profitability is proxied by Return On Assets (ROA) analysis, liquidity is identified using Current Ratio (CR) analysis and leverage is identified using Debt to Equity Ratio (DER) analysis. The sampling technique in this study used a purposive sampling technique and obtained 120 samples of companies on the IDX. The results of this study prove that simultaneously the variables ROA, CR and DER affect tax avoidance. Partially, ROA has a positive and significant effect on tax avoidance, while CR has a negative and insignificant effect. Meanwhile, DER has a significant negative effect on tax avoidance.

Keywords: Tax Avoidance, Profitability, Liquidity, Leverage