They are terrified of the IRD or anything relating to compliance even with the

They are terrified of the ird or anything relating to

This preview shows page 131 - 133 out of 241 pages.

“They are terrified of the IRD or anything relating to compliance even with the local government and things like that. This has something to do with the history, and how the government has dealt with the people in terms of the land loss, the Crown and stuff like that. It still affects some people even though it is a historical event. The injustices relating to the historical events and the perceptions of the “big brother governance” still remain in some people.” (BE 3 and BE4) “I know from my discussion with small businesses that they tend to talk negatively about the IRD. They see the paying of tax and the IRD as an ogre hanging around their shoulders and therefore they prefer to run the business at a loss to get a refund.” (BE5) Hence for Maori operators, the fear of dealing with the IRD was largely attributable to historical reasons and not based on prior unfair tax procedural treatments received (Blissenden, 2002), as discussed in Chapter 2, section 2.7. Their fear of government authorities perpetuated by their high power distance values and lack of alternative funding (as discussed in Chapter 6, section 6.2.1.4) prohibited them from proactively addressing their tax payment problems with the IRD: “Yes, I did have tax payment problems and I don’t do anything because I can’t pay them (the IRD). I wait for some money to come in, and then pay them. But personally, I have a $10,000 tax bill that I had to pay by February. I do not know where the money is going to come from. I have not arranged payment with the IRD regarding this because I do not have a weekly income, and the people (clients) are not paying. I can’t really do anything because I can’t get money from the bank and therefore that is pretty hard. You hustle for money and because you have to pay all these bills, you do go round in circles sometimes. I might just have to wait for some money to come in, and then I will pay the taxes owing even though I know there are penalties for lateness.” (M2) Their non-contact with the IRD, regarding difficulty with tax payments early enough, had led to adverse consequences, including tax penalties and compounded interest, which perpetuated their fear towards government authorities: “Even though there is assistance available from the IRD to help with the payment, this must be arranged with them before the problem arises. I think that is a bit of their (business operators’) problem because people don’t look at the IRD as someone who will help them. They look at the IRD as somebody who will hurt them, and therefore they are afraid to go to the IRD. It is the perception that the people had, that the IRD is the big bad wolf. I don’t think anybody really had much of a favourable view of the IRD.” (M9)
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118 In summary, Maori operators’ high power distance, low uncertainty avoidance and short term time orientation were some of the cultural factors for their non-contact with the IRD. Since they had little to no contact with the IRD, any requests from, or contact with
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  • Fall '16
  • tax compliance, SME Operators

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