Analysis of the Relationship between CSR and Tax Avoidance: An Evidence from Pakistan

Abstract

Business organizations are engaging in socially responsible practices in order to manage their business activities through the lens of tax avoiding practices. The current research paper reviews literature in order to check whether businesses in Pakistan are at the same time embarking on CSR and indulged in tax avoidance practices as well. There is a scarcity of literature concerning the relationship between CSR and tax avoidance practices. The current situation of Pakistan demands the corporate sector to play its role in the development of the country. Firstly, the current study tried to accomplish whether business organizations which are engaged in tax avoidance practices consider themselves as socially responsible businesses. Secondly, the research assess whether businesses in Pakistan embark o attending the goals of stakeholders.

The purpose of this material is to identify and to spot clearly the relations and the influences of the tax practices of corporations related to their undertaken social responsibility actions.