The Association between Corporate Social Responsibility Disclosure and Tax Avoidance: Evidence from Philippine
Eko Budi Santoso *
Department of Accounting, Faculty of Management and Business, Universitas Ciputra, Surabaya, Indonesia.
Kazia Laturette
Department of Accounting, Faculty of Management and Business, Universitas Ciputra, Surabaya, Indonesia.
Stanislaus Adnanto Mastan
Department of Accounting, Faculty of Management and Business, Universitas Ciputra, Surabaya, Indonesia.
*Author to whom correspondence should be addressed.
Abstract
This study investigates the association between corporate social responsibility disclosure and tax avoidance as allocations of corporate resources to the stakeholders, other than the shareholders. The study aims to examine whether companies that are actively disclosing their social responsibility are also behaving ethically in their financial aspect. Specifically, this study investigates whether companies with good social responsibility will also behave responsibly in their taxation aspect by reducing tax avoidance practices. The study is conducted in a developing country, namely the Philippines, where the sample group is obtained from go-public companies listed on the Philippine stock exchange during the 2014-2019 period that published sustainability reports. The results show there is a negative association between corporate social responsibility disclosure with tax avoidance. This shows that corporate tax practice is part of social responsibility actions.
Keywords: Corporate social responsibility, disclosure, tax avoidance, business ethics