Vol. 5 No. 2 September 2020 E-ISSN: 2502-0633, P-ISSN: 2502-4647 http://jurnal.unissula.ac.id/index.php/ijibe DOI: http://dx.doi.org/10.30659/ijibe.5.2.145-155 145 DOES MANAGERIAL OWNERSHIP AND ISLAMIC CORPORATE SOCIAL RESPONSIBILITY REDUCE TAX AGGRESSIVENESS? Maya Indriastuti 1* , Fudji Sri Mar’ati 2 , Dianing Ratna Wijayani 3 *Corresponding Author 1 Doctoral Student of Faculty of Economics and Business, Universitas Diponegoro & Lecturer at Dept. of Accounting, Faculty of Economics Universitas Islam Sultan Agung, Jalan Raya Kaligawe KM 4, Semarang, Indonesia, maya@unissula.ac.id 2 Doctoral Student of Faculty of Economics and Business, Universitas Diponegoro & Lecturer at Accounting Department, STIE AMA, Jalan Diponegoro Nomor 39, Salatiga, Indonesia, fudjisrimarati@stieama.ac.id 3 Doctoral Student of Faculty of Economics and Business, Universitas Diponegoro & Lecturer at Accounting Department, Universitas Muria Kudus Jl. Lkr. Utara Kayuapu Kulon, Bae-Kudus, Indonesia, ratna.wijayani@umk.ac.id Abstract: This study aims to test empirically the effect of managerial ownership on tax aggressiveness with Islamic corporate social responsibility as the intervening variable. The populations of this study were all entities listed in Jakarta Islamic Index from 2015-2019. 40 entities were obtained by using purposive sampling technique. All data were analyzed by using multiple linear regression analysis and sobel test. The results showed that managerial ownership has a significant positive effect on Islamic corporate social responsibility. In contrast, managerial ownership has a negative and insignificant effect on tax aggressiveness. Furthermore, Islamic corporate social responsibility has a significant negative effect on tax aggressiveness and Islamic Corporate Social Responsibility is able to moderate the effect of managerial ownership on tax aggressiveness. Keywords: Managerial ownership, Islamic corporate social responsibility, tax aggressiveness, Jakarta Islamic Index Received Revised Accepted Published October 15, 2020 October 19, 2020 October 21 30, 2020 October 21, 2020 INTRODUCTION Tax aggressiveness is the actions taken by companies to reduce their tax obligations (Dyreng, et al., 2008, 2010; Hanlon and Heitzman, 2010). Usually, companies as corporate taxpayers take advantage of weaknesses contained in tax laws and other regulations. This grey area is used as a gap or regulatory looseness that lies between the practice of planning or calculating permissible and prohibited taxes (Hardeck and Hertl, 2014). The more gaps a company uses to avoid taxes, the company will be more aggressive. Companies with tax aggressive actions have a higher risk than companies that do not engage in tax aggressive practices (Frank, et al., 2009). This risk is in form of the threat of sanctions or fines. The sanction has an impact on the decline in share prices and the company's reputation. As the result, the company's reputation is not good enough in the eyes of investors (Akhtar, et al., 2019; Tanimura and Okamoto, 2013). On the other hand, company management needs to make company profits small so that the taxes that must be paid are also small. Not only potentially to result losses, the practice of tax aggressiveness also aims to earn profits, such as saving on tax expenditures so that the profits of entrepreneurs are greater. Subsequently, the profit can be used to fund investments which can increase company profits in the future. Meanwhile, for management, tax aggressiveness can increase the compensation received from the owners or shareholders of the company. In fact, there are several factors that can reduce tax aggressiveness, including through managerial ownership and Islamic corporate social responsibility. Managerial ownership is the shareholder who also acts as the company's owner. The shareholder comes from the management, so that he actively participates in decision making