This study examines the correlation and effect of political connections and tax avoidance on firm’s value. Our sample includes Taiwanese listed and OTC companies excluding TDR, F-share, financial and insurance industries, estimating four election years during 2004 to 2016. The data was collected from the Control Yuan for Taiwan Legislative election, where the political contribution and campaign expenditures data are available. Empirical results indicate that: first, political contributions were significantly positive relative to the corporate abnormal returns; second, the tax avoidance had insignificant correlation with corporate abnormal returns; thirdly, corporate political contributions have a positive impact on the relevance of tax avoidance and firm’s value. It shows that corporate political contribution is complementary to tax avoidance affect firm’s abnormal returns.