Transactions with related entities in the light of tax solutions and CSR goals

Abstract

Purpose: The aim of the article is to analyze the impact of transactions with related entities on the company's financial results and the implementation of sustainable development goals. The lack of the tax dimension of corporate social responsibility in the literature encourages research in this area. Design/methodology/approach: Based on the study of literature and legal regulations, reference was made to the transfer pricing policy as the main instrument of tax optimization in the light of CSR solutions. It also conducted its own survey research to learn more about the relationship between the use of corporate social responsibility in a company's strategy and its approach to taxation. Findings: The article shows that the proposed changes in the publication of financial statements and non-financial reporting, together with the transfer pricing policy, constitute a new face of tax optimization in the context of corporate social responsibility. Based on the study, it can be concluded that CSR should be extended to include tax issues in the field of transactions with related entities. Originality/value: Little is known in the literature about tax issues in CSR, although solutions are increasingly being introduced to encourage companies to behave socially responsibly. Recommendations for solutions in the field of disclosing information about transactions with related entities involving CSR in the context of tax avoidance constitute the originality of the article. Keywords: corporate social responsibility, corporate taxation, tax avoidance, transfer pricing, capital groups. Category of the paper: Research paper.