NOTE ON 15-DECEMBER-2022, BY TIMBUL HUTAHEAN DATASET REFINEMENT: 1. WE HAVE TAX RETURN FROM TAX YEAR 2016-2020, WITH THE LATEST FILING DATE IS 31-DEC-2021 2. THE TAX RETURN IS COMING ONLY FROM TWO TYPES OF CORPORATE TAX PAYER: 1) INCORPORATION (CORPORATE OWNERSHIP IS DIVIDED BY SHARES) AND 2) PARTNERSHIP CORPORATION (owned by personal partnership). Both types should file tax return FORM-1771 and attach the financial statement (Balance Sheet and Profit-Loss Statement) along. 3. We EXCLUDE tax return coming from bussiness category B,D,E,F,K,L (Mining, Utiliy, Water Reservoir, Construction, Finance/Insurance, and Real Eastate) 4, WE HAVE UNIQUE TAX RETURN DATASET EACH YEAR. WE MAKE SURE THERE IS NO REDUNDANT TAX RETURN IN A SINGLE YEAR. We filtered out some redundant tax return. At this step we come up with 2407499 obs.FILTERING 1, FILTER 1. For a DER ANALYSIS, We filter out tax return with ZERO EQUITY, avoding an error in DER calculation. However we still tolerate a negative value. This give us 1936204 obs. 2. WE then construct variable DEBT that is by subtracting DEBTEQUITY with EQUITY 3. WE also construct variable DEBT2, a more relevant debt, by substracting DEBT with ACCOUNT PAYABLE and TAX PAYABLE. To do that we should firstly exclude obs with negative value on ACCOUNT PAYABLE and TAX PAYABLE. By obtaining DEBT2, we renove the almost non-bearable interest load/debt 4. FILTER 2. Having constructed a DEBT2, we then exclude the observations with value under IDR 0.00001 based on DEBT2. By doing this, we have filtered out the NEGATIVE and ZERO DEBT2. This give us 735297 obs. 5, FILTER 3. Realizing that DEBT2 is a product of adding and subtracting, an insignificant gap might exist that should have been ZERO. We the remove all observation with DEBT2 value under IDR 500.000. This step result in 724491. We are also prudent on tax return filled based on the financial statement in USD currency. To avoid an error currency exchange tax return enter the sample, we filterd out one observation in which it’s asset experience a jump by 1.6 milion % in one tax year. This phase bring us 724490 obs.6. FILTER 4. We also adopt an accounting rule checking, that is by only including the observation in which the TOTAL ASSET are equal to DEBT plus EQUITY. However We tolerate the if the gap is under IDR 250.000. We assume this small gap was due to a rounding error. This filtering result in 709177 obs. 7. FILTER 5. For materiality reason, lastly We only include observation, that has minimum absolute IDR 500.000 value in EQUITY. By applying this criteria we avoiding a very high DER calculation. For example, if the DEBT2 is equal to IDR 1.000.000 and the EQUITY is IDR 1. The DER will show a very huge ratio. This filtering result in 708735 obs. 8, FOR a DER ANALYSIS using INTEREST EXPENSE as a weight, we remove all observation that has negative and zero value of INTEREST EXPENSE. This separated dataset consists of 160613 obs 9. Finally, for DER anlysis using BUNCHING ESTIMATE, he have FSREDUCE and F5REDUCE_INTEXP dataset with 708735 and 160613 observations respectively.DIAGNOSE OF F5REDUCED vasabies ‘pes rissing_count rissing_percent ‘ique_ount ‘nique rate TAXIDS character ° ‘0.00000, 245,53 "0.386435550064 TAXIOSTAYR character ° 2.00000 709,795 000090000000 TAXIDISTIR characte ° 0.00000, 708,738 000000000000 TAXYEAR character ° 2.00000 5 ‘.000007054823 ASSET metic ° 2.00000 620,100 0.959597026509 DeBTEQUITY mee ° 0.00000 590,146 0.958661892080 Equity meric ° 0.00000 672,504 o.geae7s341362 Deere ume ° 0.00000, 571.239 9.605908010540 ‘TURNOVER ume ° 0.00000 505,033 o.szs4s0ns6514 iTexe metic ° 0.00000 153500 o.zzesas94a162 AVGTAKRATE metic ° 0.00000, 166,120 o.zasaaa4aoge1 DEREND ume ° 0.00000 687,356 0.959038907609 DeRave ume see2it 25.00182 517,398 o.730osn26s101 DERDDEE metic 194201 25.9018 517,059 0.729566057835, DINTEXP characte ° 0.00000, 2 ‘.000002821929 DsALes character ° 2.00000 2 ‘.ondea2e21929 PROFIT chance ° 0.00000, 2 ‘.000002821929, DeISPROFIT character ° 2.00000 2 ‘000002821929 DTAXLOSSCAR characte ° 0.00000, 2 ‘.000002821929 TAKING character ° 0.00000 2 ‘.000002821929 DTAXCREDIT character ° 0.00000 2 ‘.000002821929 DKORFISPOS character ° 0.00000 2 o.ongo0ze21823 DKORFISNES character ° 0.00000 2 ‘000002821929 boeouct character ° 0.00000 2 ‘.000002821929 DRECURR character ° 2.00000 2 ‘.on0e02@21929 DTAKUIAB character ° 0.00000 2 ‘.000002821829 BALANCEROUNDOSM character ° 2.00000 a ‘000003410065 BALANCE chavacter ° 0.00000, 2 ..000002821829 pasrsz47 character ° 0.00000 2 ‘.o00ea2e21929 ‘SPTDOLLAR chance ° 0.00000 2 ‘.000002821929, coRPFORM character ° 2.00000 2 000002821929DIAGNOSE OF FSREDUCED vanables mn a mean rmesan @ max zero minus outer ASSET 9.647 610,453648.0 1,112,919,263 92.664,749,240.736725 4704,826,759.0 19,855,059.2725 765157,110260,0000 10-128 105078, DEBTEQUITY -9.647,610,055,848.0 1,112,919.263 97.654,749,245518615 4,704826,759.0 19,855,059,2725 765,157,10,260,0000 3a 105078 EQUITY —-38.696.502.445,9130 259,294007 41,290.018,542.766227 1.447,620,6040 6996707,059.5.402,962,719.499,007.0 © 82.268 120776 esr 500.0020 99,5H9.066 «2,719.804242.605389 901,4282750 6.154562.0875 325,626,546,312.500.0 ° 0 u2az6 TURNOVER -405,698,213,908.0 530,484,699. 77,020,045,642.725250 4,050/687,190.0 20.039577,8905 669,071,266,713,0000 108242 23. 103.605 IwTexP -845,006,195,5830 0 1268.273.846.588276 00 00 sosazs7.0256310 Sisco 02 160715, AVGTAXRATE oo ° ine 00 02 Int 420068 0 466 DEREND 1642836 ° 2asais2 03 12 28.4555 138.450 80.509 132.663 DeRAVG 84,6595 ° seoarrrr 03 14 73.907.4746 76.980 65.893 95,086 DERODEE 368,615.6 ° 1.80058 03 13 307.7257 7807S 63.278 98011DIAGNOSE OUTLIER OF FSREDUCED variables cutiersent outers ratio cutiers_mean vwih_mean without mean asset 1os07e 142613369 501,437 102,687. 445567 92.664,749,240.736725 71584 594,766.68764762 DeBTEQUTY 105078 1482613369 901,497, 192,61.127481 92,664,749,245.518616 7:584;598,773.66082668 EQuiTy 1078 s7.08106612 231,054, 962,635. 166046 41,308.018,5¢2.766527 2,430,507 694-72400835 besre sade 15.62029055 259,423,008,408.957581 42,719,004,281.695368 1,993,705, 539.54355073 ‘TURNOVER 103.608 1461829880 49.914157,711.318604 77,828,085 642.725250 7.274;310 675.25267410 INTEXP seo7is 2267631766 5,151,955,726.092773 1,168,273 ,46 568276, ©.00000000 AVGTAXRATE 485006575005 int int oovea016: DEREND sg6s3t.71827075 9.406579 2astise oavoxs133 DERAVG 95886 1352017522 462.106363 eeearr77 054754901 DERDDEE seo11 —12.¢2900520 ‘7800536 210658 ostoossaaDERAPP UNWEIGHTED so TAK YEAR oN Mean’ Median N Mean Median me 0078 27743 ars 2543count DERAPP UNWEIGHTED aedbaboosbsbababo’atos 1batadabséadaimindace aedbabooshsbababo’ntes 1batadabssadaimndacs DERAPP,DERAPP UNWEIGHTEDcount DERAPP UNWEIGHTED DERAPP,DERAPP WEIGHTED BY DEBT2 PROPORTION TAK YEAR N Mean Median N wasn Median 76 aime 2774-30 eres 284count DERAPP WEIGHTED BY DEBT2 PROPORTION asadanbobshsbabatointes sbainbadsieiniabsiabo -.daiabotsbababobaiabes siabeabadaiodeissaccn DERAPP,3 DERAPP WEIGHTED BY DEBT2 PROPORTIONDERAPP WEIGHTED BY DEBT2 PROPORTION 3 = o aloo ato slo elo do alo alo soho DERAPP.DIAGNOSE OF FSREDUCED_INTEXP variables ‘ypes: issing_count rising percent ‘rigue_count| unique TAXIDe character © ‘0.00000 eau ‘osraaar223761 TAXIDSTAYR characte ° 0.00000, 360,613 000090000000 TAXIOISTAR character ° 0.00000 360,613 1190000000000 TAXYEAR character ° 0.00000 5 ‘.000031190730 ASSET ume ° 0.00000 160,320 0.996175799199 DesTeQuiry umeric ° 0.00000 360,323 ‘o.90e194817637 EQuTy ume ° 0.00000, 159,860 ‘9.996913712003 esr pumeric ° 0.00000 151,816 osearnss19914 ‘TURNOVER metic ° 0.00000 155,587 ‘o.96a707989833 iTExP ume ° 0.00000 159477 0.955570221509 AVGTAKRATE metic ° 0.00000 19 ‘9.000118296775 DEREND metic ° 0.00000 2599 ‘oxs144a96780 DeRAVG pumeric 20,390 ras7089 2.488 .orsasnssse2 DERDDEE metic 20300 s2s7059 2ae. o.o14986715272, DINTEXP character ° 0.00000 1 ‘000006226346 sates. character ° 0.00000 2 ‘.000012852282 PROFIT character ° 0.00000 2 ‘000012482202 DISPROBIT character ° 0.00000 2 ‘.0n0012482282 DTAXLOSSCAR character ° 2.00000 2 ‘000012452202 TAKING character ° 0.00000 2 ‘.000012482262 DTAKCREDIT character ° 0.00000 2 ‘e.000012482202 DKORFISPOS character ° 0.00000, 2 ‘000012482262 DKORFISNEG character ° 0.00000 2 ‘o.000012482202 Doepuct character ° 0.00000, 2 ‘.000012452202 DRECURR character ° 0.00000 2 ‘o.o00012452292 DTAXLIAB character ° 0.00000, 2 ‘.000012452202 BALANCEROUNDOSM character ° 0.00000 a ‘000008226346 BALANCE character ° 0.00000, 2 ‘000012452202 pasriz7 character ° 00000 2 ‘o.o00012452292 ‘SPTDOLLAR character ° 0.00000, 2 ‘.000012482202 coRPFORM character ° 2.00000 2 ‘000012482292DIAGNOSE OF FSREDUCED_INTEXP variables mn a mean median es max 220 minus ouer Asset 572871,591.2850 5,988,229,658.0 295132191 306.991425.16,773098 9130 71,928.371/648.0 755,157,1102600000 02822818 DEBTEQUITY 572.871.591.550 5.988.225.6500 295,132191,314590069. 173098 9130 71928371/6480 755,157,1102600000 0282218, EQUITY -27,764,880,1602290 1.919,775978.0 99,329,256.944.90:909 4898,779:1460 21,397034,1120 402.962,7194996070 01780327480 peste 505.9140 1,596926667.0 116,995,710,200.548477 591,207 252.0 30,594,660,010 325.626545125000 0 «24008 TURNOVER 7.807.145 90.0 6,060,817,295.0 700,732,196,700.890325.23,155,414.772.0 82770,506,1960 669871,7665,7130000 4959 571,04 Tex 0 90,759.4260 5.161,542.250.502769 9769407990 1.617.954,1600 Gos9asTo2s6a.0 = 028,287 AVGTAXRATE 00 oo int 02 02 i soase DEREND 49,7820 02 1.82250 o7 2a 357753 9104 1741826207 DeRAVG 24g7as 02 96.560028 08 22 PSEA 4849 15919 22701 DERDDEE 57.3060 02 s.rosaae os 2a 592008 4598 14.904 23.360DIAGNOSE OUTLIER OF FSREDUCED_INTEXP variables futlers_ent outlets rato cutlers_ mean vwith_ mean wthou, mean ASSET 22816 14.20557409 1.479,265,194,190.998281 285,132,131,306.991425 29,132.446,317. 9694214 DEBTEQUITY zeeie 1420567409 1.479,265,194,107.793945, 235,132,131,314,598969 29,132,446 390.6765251 EQuiTy 27450 17.09077008 530,659,446,145.69836¢ 98,329,256,9¢4.901003, 7,861,556,758.7551498 DesT2 2aooa — sa.94sze105 713975,771,591,.945485 1126,595,710,109 548477 41,822.482,314.7218990 ‘TURNOVER, 2iosa 1368755054 1.31g,so2.672.517.588135 209,782,196,766.89025 34,694 577,373.3182297 INTEXP 23287 14.4gse26a7 31,987,796,25317974 5,261,542,159.502769 620,980,052 8173989, AVGTAXRATE 99 o.osi63885 int int ox2si872 DEREND zeaor — agavaiz249 4226209 1.822259 4.0061945 DERAVG zara. sa.asz65265 1.208.677867 196.560823 10808194 DERDDEE zaaso sasaez7724 4.502423 1.708388 ov29s1aDERAPP UNWEIGHTED-BEAR INTEREST ONLY DERAPP,count DERAPP UNWEIGHTED-BEAR INTEREST ONLY aaimbobahssabato’nte’ dababacsiadsiniadsiee .:dadababahsbainiobain’ baiaiadsiasobaistao DERAPP|DERAPP UNWEIGHTED-BEAR INTEREST ONLYcount DERAPP UNWEIGHTED-BEAR INTEREST ONLY DERAPPDERAPP WEIGHTED BY INTEREST EXPENSE PROPORTION-BEAR INTEREST ONLY ‘TAK YEAR " 768 Mean Median Naan Median 160612 353270 sae8s.count DERAPP WEIGHTED BY INTEREST EXPENSE PROPORTION-BEAR INTEREST ONLY asadanbobshsbabatointes sbainbadsieiniabsiabo -.daiabotsbababobaiabes siabeabadaiodeissaccn DERAPP,3 DERAPP WEIGHTED BY INTEREST EXPENSE PROPORTION-BEAR INTEREST ONLYDERAPP WEIGHTED BY INTEREST EXPENSE PROPORTION-BEAR INTEREST ONLY count DERAPP.