| This thesis discusses about how profitability impact to corporate tax with capital structure as an intervening variable. The study was conducted on the manufacture of consumer goods industry listed in Indonesia Stock Exchange with the period from 2013 until 2015. Based on that, there are 37 companies that became the object of this thesis. Hypothesis testing was done by using path analysis that shows profitability has negative influence on capital structure. This is in line with the Pecking Order theory. The study also proved that the capital structure had a negative effect on the tax paid by the company which is in line with the Trade-Off theory. Capital structure did not intervence the relationship between the company's profitability and the tax paid by the company. |