Understanding corporate tax responsibility: a systematic literature review

Abstract

Purpose This study aims to contribute to the debate about the place of corporate taxation in corporate social responsibility (CSR) by reviewing the present state of research, offering a comprehensive understanding of the content and dimensions of corporate tax responsibility (CTR) and discussing further developments in research and action. Design/methodology/approach The study builds on a systematic literature review of 117 theoretical and empirical papers on tax within the broad field of CSR published in peer-reviewed academic journals and books. Findings The analysis unfolds and discusses the construct of CTR and proposes a unified conceptualisation that elucidates for what firms are (or should be) held accountable on tax matters and the different dimensions (i.e. instrumental, political, integrative and ethical) which justify greater tax responsibility and enable its achievement. Practical implications The results can provide companies with practical guidance to enhance their tax responsibility and can give stakeholders and policymakers suggestions for new mobilisation strategies to achieve more responsible tax behaviour. Social implications Corporate tax payments are a fundamental dimension of CSR, as they fund public goods and services and reduce the unequal distribution of wealth. Providing a more structured understanding of CTR, this paper can contribute towards attaining more responsible tax outcomes which can better serve and benefit the whole society. Originality/value This study offers a structured overview of the present state of tax research in CSR, while providing a comprehensive understanding and conceptualisation of the construct of CTR, thus enabling scholars to situate their work and develop further relevant research in this field.

Do Tax Rates Encourage Profit Shifts By Multinational Companies In Indonesia?

“…Thus, stakeholders expect companies to fulfill social obligations, including paying rightfully owed taxes (Payne & Raiborn, 2018). Stakeholders want firms to properly pay taxes since they provide revenue for governments to fund various beneficial public programs and services (Scarpa & Signori, 2023). The public is seen as a key stakeholder in evaluating corporate ethical behavior during the COVID-19 crisis.…”