Ethical Issues in Tax Avoidance; Study in CSR Perspective, a Literature Review
DOI:
https://doi.org/10.34010/icobest.v4i.488Keywords:
Corporate Social Responsibility, Tax Avoidance, Tax Aggressiveness, Ethics of tax Avoidance, Corporate governanceAbstract
The tax avoidance still become an ethical issue in corporate tax planning. It is generally seen as irresponsible and unethical. Corporate Social Responsibility (CSR) is one of the benchmarks of corporate ethics. This study aims to examine the role of social responsibility as an ethical shield in implementing corporate tax avoidance through a literature review of 2020-2022 research. Companies with low social responsibility are seen to be more aggressive in tax avoidance. The review results show that social responsibility can act as a catalyst for tax avoidance. However, this does not rule out the possibility that companies also use social responsibility as a hedge against the potential consequences of aggressive tax avoidance practices. Policy makers can encourage corporate CSR activities, but the impact of these activities may differ depending on the motives of each company.