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

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.