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 onexisting laws. This article examines the relationship betweenCSR and compliance with corporate tax in Tanzania. It isobserved that, while on the one hand, ethical and moralaspects of CSR should help to improve tax compliance in aparticular jurisdiction on the other hand, adoption of CSRmay come with corporate tax benefits to the companies.However, given the wide range of activities of the statewhich are financed by tax revenue, the article emphasizeson the need to include an item on corporate tax compliancein CSR reports. Also, it calls for deliberate efforts by thestate to improve and prioritize provision of public as well associal services. Such measures will reduce reliance on CSRprogrammes in the provision of public and social services,aspects, which raise issues of legitimacy in a democraticstate.Key Words: CSR and corporate tax, corporate tax law, incometax law, social welfare, public welfare, allowabledeductions.