Detail Cantuman

This study aims to analyze the effectiveness conformability of tax policy implementation on debt equity ratio instruments in counteracting the practice of thin capitalization in Indonesia, the extent to which tax policies on instruments of debt equity ratio in relation to investment policy in Indonesia, what are the inhibiting entities and driving entities in implementing policies debt equity ratio to counteract the practice of thin capitalization in Indonesia. The research approach used in this study is a qualitative approach with descriptive methods. The results of the study concluded that the implementation of taxation policies on debt equity ratio instruments is quite effective in counteracting the practice of thin capitalization in Indonesia, tax policy on debt equity ratio instruments indirectly affected investment policy in Indonesia, and in implementing tax policies on debt equity instruments the ratio still faces several obstacles. Although the determination of the debt equity ratio is recognized to be able to counteract the Thin Capitalization, but in relation to Investment Policy in Indonesia it seems that it is still not synergistic, and in fact its treatment has not been meeting with the principle of tax justice. Based on the results of the study, the authors recommend to the tax authorities to make several efforts to= overcome the obstacles occurred such as socialization, education, supervision and proper inspection of taxpayers so that state tax revenues can be optimized