culture as money is considered very fluid easy come easy go and in the Islands

Culture as money is considered very fluid easy come

This preview shows page 158 - 160 out of 241 pages.

culture as money is considered very fluid - easy come, easy go and in the Islands you do not need to earn your keep. We are very spontaneous decision makers I guess. When I see something, I want it now. It is probably no planning and it is instant gratification, and live for now because the future is too far ahead. There is lack of discipline in finance because you are so loose with money and money comes and goes and it is very transient.” (P3) “The Pacific is kind of whatever that is before us do what it is. It is kind of live day to day and live week to week.” (BE12) Business experts observed that spontaneous spending and instant gratification were common traits of the Pacific group brought about from their lack of financial literacy. As a result, many incurred high borrowing and tax compliance costs: “To the Pacific, money is kind of an annoying aspect of their lives in most cases. It is never seen as a priority and it is only seen as a priority if they do not have enough money or when something drastic happens in the family and they need money. Typically the clients that I have dealt with the last six months, there seemed to be a never ending queue of people who wants to do things on credit.” (BE12) “I know what it is from my past and prior to being in business, I was always in debt. It is probably not having the discipline . . . and you are so loose with money . . .you are not accountable for your own actions and you think someone is going to bail you out. Those who are going to bail you out may probably be your family and your friends.” (P3) 8.5.2 Pacific operators’ perceptions of tax payments and cash jobs Like the Asian group, Pacific operators also complained about the high taxes with significant cash outflows with tax payments. Like the European sample, they too did not mentally differentiate the different types of taxes, which made them believe that their tax payments were excessive. This was partly caused by their low tax knowledge and with poor financial literacy: “There are also a lot of different taxes and that is confusing. For a small business owner, it is like you are paying taxes upon taxes and then you pay yourself and that gets taxed. When you pay somebody and by the end of the day there is not much left for the dollar.” (P4) Since Pacific operators had given much to their in-groups, they resented having to contribute to an authoritative, out-group institution such as the IRD. Due to their high power distance values, many felt that the government was able to function without further contributions from them:
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145 “I see tax as a burden as we have to collect all these GST and then pay the government. Then we have to collect all these PAYE and KiwiSaver, and then pay to the government and we are all one big tax collection place.” (P1) “Um . . . it is like my goodness, do I have to pay this much all the hard earned money? I remember in my early days and when you are making a lot of money, you have to pay so much to taxes and you know it was certainly a hard one. I remember making the transfers
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  • Fall '16
  • tax compliance, SME Operators

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