Independence Financial Expertise in Audit Committee and TaxAvoidance: is business strategy moderate this relationship?

The role of financial expertise in audit committee in influencing tax avoidance has been investigated in many previous studies, however, the role of strategy choices by management still not the attention of the researcher. Thus, this study aims to search the strategic choices in moderating the association of financial expertise and tax avoidance. We apply Miles & Snow's Typology, that categorized strategy into prospector, defender, and analyzer. The research sample is listed manufacturing companies in Indonesia Stock Exchange for the period of 2014-2018. There are 320 firm-year that qualify the sample criteria. We find that the existence of financial expertise in commit- tee audit has a significant positive effect on tax avoidance, strategy choices by the companies have no influence on tax avoidance, therefore business strategy cannot moderate the relationship between financial expertise in audit committee and tax avoidance. This research can be implied for companies and governments. With the existence of independent financial expertise can make companies more compliant with applicable regulations and pay taxes according to what they should. For the Government or the authorities can compile policies, especially in taxation, which are appropriate in order to increase taxpayer compliance.