IIARD International Institute of Academic Research and Development

Journal of Accounting and Financial Management (JAFM )

E-ISSN 2504-8856
P-ISSN 2695-2211
VOL. 9 NO. 5 2023
DOI: https://doi.org/10.56201/jafm.v9.no5.2023.pg197.206

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Empirical Investigation of the Impact of Corporate Social Responsibility on Tax Avoidance in Nigeria

Agbaeze, Clifford Chilasa, Onoh, Uloma Adonye, Chukwu Peter Damian Ezechi.

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Abstract

The impact of corporate social responsibility (CSR) on tax evasion in Nigeria was the main subject of this study. To do this, information was gathered from the annual reports and accounts of banks listed on the Nigerian stock exchange's floor. Based on the analysis completed, it was determined that return on asset had a favorable link with tax evasion. Tax evasion was found to have a beneficial association with CSR. When examined at the 5% threshold of significance, it was also discovered to be non-statistically significant. The final factor, firm size, was discovered to have a bad correlation with tax evasion. However, a 5% level of significance test revealed that it was not statistically significant. Therefore, it was advised that in order for an organization to avoid paying taxes, it must first make the best use of its resources. Due to the significant costs associated with practicing corporate social responsibility, it is one of the main ways that businesses avoid paying taxes. As a result, the tax burden that is owed by a company is reduced. Additionally, the degree of tax avoidance is not greatly influenced by the size of the company.

keywords:

Tax avoidance, Corporate social responsibility (CSR), Firm size

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References:

Abigail, M., & Donald, S. (2000). Corporate Social Responsibility and Financial Performance
Correlation or Misspecification. Strategic Management Journal, 603-605.

Alm, J., & Martinez-Vazquez, J. (2001). Societal Institutions and Tax Evasion in Developing
and Transitional Countries. A Paper Prepared for Public Finance in Developing and
Transition Countries: A Conference in honour Of Richard Bird International Studies
Program Andrew Young School Of Policy Studies, Georgia University.

Bowen, H .R. (1953) Social Responsibilities of The Business Man. New York, Harper.

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