Tax Compliance and Cultural Values: The Impact of 'Individualism and Collectivism' on the Behaviour of New Zealand Small Business Owners

32 Pages Posted: 5 Jul 2016

See all articles by Dr. Sue Yong

Dr. Sue Yong

Auckland University of Technology

Fiona Martin

UNSW Business School

Date Written: February 9, 2016

Abstract

Due to changes in immigration rules and globalisation, most developed countries including Australia, Canada, New Zealand, the United Kingdom and the United States of America are becoming more culturally diverse. The consequence of cultural diversity challenges the present assumption of homogenous resident taxpayers. This leads to the need to examine existing tax policies and administration. Sparse research on tax compliance and culture also provides the rationale for an in depth qualitative study of ethnic small business taxpayers' compliance behaviours. This study examines the attitudes and abilities of small business operators in New Zealand towards paying their taxes on time. The small business operators are categorised, using Statistics New Zealand categories, into New Zealand's four largest ethnic taxpayer groups: Europeans, Asians, Maori and Pacific peoples. The study adopts a qualitative research methodology and evaluates the taxpayers' behaviour through the lens of the cultural values of "individualism" and "collectivism". The results of this study are relevant for tax administrators, academics and practitioners in New Zealand and also Australia, in view of the fact that Australia is also a multicultural nation.

Suggested Citation

Yong, Sue and Martin, Fiona Anne, Tax Compliance and Cultural Values: The Impact of 'Individualism and Collectivism' on the Behaviour of New Zealand Small Business Owners (February 9, 2016). Available at SSRN: https://ssrn.com/abstract=2804417 or http://dx.doi.org/10.2139/ssrn.2804417

Sue Yong

Auckland University of Technology ( email )

AUT City Campus
Private Bag 92006
Auckland, 1142
New Zealand

Fiona Anne Martin (Contact Author)

UNSW Business School ( email )

UNSW Business School
High St
Sydney, NSW 2052
Australia

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