Disclosure of Corporate Social Responsibility (CSR) as a Means of Legitimacy : It’s Impact on the Level of Tax Agrresiveness

Based on the argument of legitimacy theory, there are allegations that companies use disclosure of corporate social responsibility (CSR) in order to maintain the image in the public eye. This study aims to examine the effect of CSR disclosure on tax aggressiveness. The hypothesis proposed is that disclosure of CSR has a negative effect on tax aggressiveness in order to maintain its image. This study aims to examine the generalization of the findings of Lanis & Richardson (2012) in the Indonesian context and explain the inconsistency of the research findings of Jessica & Toly (2014) and Wahyudi (2015) which are different from the findings of the research Lanis and Richardson (2012), Issam et al. (2015), Mgbame et al. (2017) and Suprimarini & Suprasto (2017). The sample consisted of non-financial companies listed on the IDX in 2015-2017. Statistical testing is done by using ordinary least squares (OLS) regression analysis techniques. The results showed that the lower the level of CSR disclosure of a company, the higher the level of tax aggressiveness. These results provide empirical support for the legitimacy theory that companies always try to get support from their institutional environment