Corporate Social Responsibility and Tax Avoidance: Do Socially Responsible Firms in Indonesia Pay More Taxes

The practice of tax avoidance in companies has increased since 2000, and has harmed the country's economic development. Tax avoidance is as vital as environmental issues, in this case it is interpreted as a form of Corporate Social Responsibility (CSR) report. This research tries to analyze environmental, social, and governance performance that influences tax avoidance activities in companies, with a sample of 86 companies listed on the Indonesia Stock Exchange in the past 10-year period, namely 2013-2022. The research method used is quantitative, using data obtained from financial reports, annual reports, and other quantitative data through the Refinitiv Eikon database. The data analysis technique used is panel regression using the Eviews 9.0 application. The research results show that the level of CSR reporting based on ESG performance has a negative effect on tax avoidance practices. A low level of CSR reporting actually indicates high tax avoidance, meaning that CSR disclosure or reporting is only a formality for compliance with policy, but the level of tax avoidance is actually quite high. This is a form of action from the company to maximize the gaps that exist in tax laws and regulations in Indonesia. This research also shows that CSR disclosure is reflected in ESG performance, so it is necessary to expand other variables over a certain time span. Further research can also be carried out using other methods, with the hope that the research results can make a positive contribution to both stakeholders and the company.