Balancing Growth And Compliance: The Moderating Role Of Digital Transformation In Tax Avoidance

Abstract

This study aims to analyze the effect of profit growth on tax avoidance, with digital transformation as a moderating variable, in healthcare companies listed on the Indonesia Stock Exchange for the 2020–2022 period. The analysis was conducted using Moderated Regression Analysis (MRA) with EViews 13. The results show that profit growth has no significant partial effect on tax avoidance. However, the interaction between profit growth and digital transformation has a significant negative effect, indicating that digital transformation weakens the influence of profit growth on tax avoidance. These findings suggest that the adoption of digital technologies enhances transparency, accountability, and tax oversight, thereby reducing managerial opportunistic behavior. Simultaneously, profit growth, digital transformation, and their interaction significantly affect tax avoidance, demonstrating the crucial role of digital transformation in improving corporate tax compliance in the healthcare sector.