Abstract

This article aims to examine whether corporate social responsibility (CSR) and the number of audit committees have an association with corporate tax avoidance. After analyzing 428 firms' years of observation of the manufacturing industry from 2017 to 2019, the results of the linear regression suggest that CSR activities reported in the corporate report have no association with tax avoidance. Profitability and leverage, which serve as control variables, have an influence on tax avoidance. The study's findings suggest that companies do not use CSR activities as a tax avoidance tool, and conversely, high CSR activities do not correlate with increased tax payments or reduced tax avoidance. The number of audit committee members negatively affects the effective tax rate score (ETR), suggesting it encourages more tax avoidance. Our findings inform the tax authority agency and financial authority service that, to ensure tax compliance, the company should enhance the effectiveness of its audit committee.