| Abstract [eng] |
Currently, in order to stay competitive in the market and be socially responsible, companies have to claim new goals and implement new projects and social programs. This is mainly because of the increase in demand for Corporate Social Responsibility (later – CSR) activities coming not only from stakeholders but also from local government as well as the international environment. Moreover, tax planning is another key activity in the corporation. Most of the companies are planning their profits in such a way that the taxes would be minimum and the shareholder value would be as high as possible. Although, it is not illegal by law, it might lead to tax avoidance or even tax evasion which might also ruin the reputation of a company. Therefore, the question arises – does corporate social responsibility correlates with tax avoidance? Various studies find completely different results regarding the relationship between tax avoidance and CSR in the U.S. and Asian countries while there are only a few studies performed on European countries. Therefore, the scientific gap of the topic related to Baltic countries confirms the relevance and importance of the problem. This study aims to assess the impact that CSR has on tax avoidance by running a regression analysis. |
