Corporate Tax Law and Corporate Social Responsibility in Tanzania: An Examination of their Relationship

Abstract

Whether adopted voluntarily or imposed through legislation, Corporate Social Responsibility (CSR) has an impact on existing laws. This article examines the relationship between CSR and compliance with corporate tax in Tanzania. It is observed that, while on the one hand, ethical and moral aspects of CSR should help to improve tax compliance in a particular jurisdiction on the other hand, adoption of CSR may come with corporate tax benefits to the companies. However, given the wide range of activities of the state which are financed by tax revenue, the article emphasizes on the need to include an item on corporate tax compliance in CSR reports. Also, it calls for deliberate efforts by the state to improve and prioritize provision of public as well as social services. Such measures will reduce reliance on CSR programmes in the provision of public and social services, aspects, which raise issues of legitimacy in a democratic state. Key Words: CSR and corporate tax, corporate tax law, income tax law, social welfare, public welfare, allowable deductions.