Analysis of the effect of corporate social responsibility on tax avoidance with profitability and firm size as moderating variables Online publication date: Mon, 23-Nov-2020
by Frandy Karundeng; Vierly Ananta Upa; Yanuar Dananjaya
International Journal of Society Systems Science (IJSSS), Vol. 12, No. 3, 2020
Abstract: Companies that take benefits of natural resources are required to implement corporate social responsibilities (CSRs). Besides, they have an obligation to pay tax. CSR and tax have the same goal to improve the community welfare, while both are expenses for the companies. These similarities allow companies with high CSR activities to decrease the amount of tax payable through tax avoidance practices. The results of this study show that the higher the level of CSR activities, the higher the company's responsibility for its tax obligations. Moreover, CSR has stronger influence on decreasing tax avoidance if CSR is carried out by large companies. Profitability does not moderate the relationship because of the weakening economic conditions of mining industry. In addition, companies with high CSR activities assumed that tax payment became a part of CSR, so they did not consider CSR and tax payment to be separated and mutually replaceable.
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Society Systems Science (IJSSS):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email subs@inderscience.com
Our Blog 
Follow us on Twitter 
Visit us on Facebook