Effect of Corporate Social Responsibility Practices on Corporate Income Tax Payment by Telecommunication Companies in Nigeria

Abstract

This paper examined the effect of corporate social responsibility (CSR) practices on corporate income tax payment by telecommunication companies in Nigeria. The population for the study comprises unlisted telecommunication companies operating in Nigeria. The samples for the purpose of this study are firms chosen from the Nigerian multinational telecommunication sector not listed on the Nigeria Stock Exchange. Annual reports of selected firms formed the source of the secondary data collection for the period 2010 to 2017. A panel logistic regression model was developed to evaluate the influence of CSR on the corporate tax payment. Analysis was conducted with the aid of E-view. The study found that CSR exerted significant influence on the effective tax rate paid by the telecommunication companies in Nigeria. The study recommends that tax authority should properly probe all CSR expenses of telecommunication companies to checkmate inclusion of non-allowable expenses that would reduce tax revenue accruable to the government.