Contents
                 Contents
          1 Introduction
          2 Theory and Hypothesis
          3 Research Method
          4 Data Analysis and Discussion
          5 Conclusion and Suggestion
             Introduction
             Introduction
    This study aims to determine whether corporate 
    governance has effect on tax management which is 
    measured by effective tax rate. 
    As an expense tax reduce the income and shareholder 
    wealth.
    Tax compliance will increase the firm reputatioan
    Firms manage income to reduced their tax payment by 
    tax management activities.
    Byrnes and Levelle (2003), big companies in US made 
    tax management by lowering the effective tax rate
              Introduction
              Introduction
    Tax management was influenced by corporate 
    governance (Minnick and Noga, 2010).
     Tax management was complex and induce opprotunity 
     behavior from management. 
     High level uncertaintay of tax management and usually 
     doesn’t provide direct impact to company
    Corporate governance tend to reduce ETR.
    The research replicate to Minnick and Noga 2010 with 
    adaptation to the Indonesian data.
     Unify the board compensation.
     Simplify the ETR measurement
               Tax Management
               Tax Management
     Process  of business organizing
     Process  of business organizing
     To reduced tax paid or manage optimal cash flow of tax
     To reduced tax paid or manage optimal cash flow of tax
     The activities permitted by tax law and regulation – tax 
     The activities permitted by tax law and regulation – tax 
     avoidance
     avoidance
     Not permitted by law – tax evasion.
     Not permitted by law – tax evasion.
     Zain(2005)
     Zain(2005)
               Tax Management
               Tax Management
    Several strategies to reduce tax legally – tax avoidance.
    Scholes et al (2002) built a conceptual framework of tax 
     management
      All parties  consider the consequences of the 
      planned transaction to all parties that will be affected 
      by the transaction
      All tax  consider not only explicit taxes, but also the 
      implicit tax
      All cost  requires policy makers to realize that the 
      tax is just one of many costs in the business, and all 
      charges will be taken into account when making plans