<p>This study examines how a firm’s temporal orientation influences its tax behavior, integrating insights from stakeholder salience theory. Temporal orientation, reflecting a firm’s focus on long-term versus short-term outcomes, shapes strategic planning and stakeholder engagement, each of which impacts corporate tax practices. Using a comprehensive dataset of European firms, the study reveals that long-term-oriented firms are more inclined to avoid taxes than short-term-oriented firms. Strikingly, the negative relationship between temporal orientation and tax avoidance is stronger for highly profitable firms than for less profitable firms. The results suggest that a long-term orientation is associated with increased priority given to shareholders over other stakeholders. The negative relationship between investment horizon and tax avoidance is stronger for firms with higher profitability, but weaker for firms with greater stakeholder orientation. These findings suggest that long-term-oriented firms are not inherently more ethical—unless they are also committed to stakeholder engagement.</p>