Radical innovation is a breakthrough change in the overall pattern of the old system, as a form of implementing new ideas to achieve a competitive advantage. Radical innovation is a solution to escape from external environmental pressures in the form of competition, deregulation in the industry, scarcity of resources, and higher customer demands. This study builds a conceptual model from an Islamic point of view: the value of maslahah in all cases provides benefits or goodness from radical innovation. Maslahah means the good rewards promised by God in this world and the hereafter, thus maslahah implies the benefits of this world and the hereafter, which encourages people to always think and produce new things that are beneficial.

This study aims to analyze the impact of Profitability, Leverage, Firm Size and Liquidity on Tax Avoidance. In this study, Profitability is proxied by Return on Assets (ROA), Leverage is proxied by Debt Equity Ratio (DER), Firm Size is proxied by Total Assets, and Liquidity is proxied by Current Ratio (CR). The population in this study are automotive and component manufacturing companies. Data collection uses purposive sampling method and based on predetermined criteria, the number of samples obtained is 12 automotive and component manufacturing companies during the 2017-2020 period. The data analysis technique used is multiple linear regression analysis. The results showed that Profitability, Liquidity and Firm Size had no impact on Tax Avoidance, while Leverage has a positive impact on Tax Avoidance.