Abstract

Tax evasion is common in various sectors, including the property industry in Indonesia.
This practice can be carried out through manipulation of financial reports, exploiting legal
loopholes, or placing investments in areas with lower taxes. This research focuses on the
impact of profitability and inventory intensity on tax avoidance in the property and real
estate sector. The sample was selected from property and real estate companies listed on
the Indonesia Stock Exchange, taking into account the criteria of financial data availability,
reporting consistency and adequate industry representation. The research results show
that profitability and inventory intensity have a significant influence on tax avoidance in this
sector. These findings provide important insights for financial practitioners and regulators
in developing more effective and fair tax policies. With a better understanding of the factors
that influence tax avoidance, regulators can design more careful policies to prevent
practices that harm state tax revenues and create equality in the tax system.