research is to determine what practices ethnic SME groups undertake to meet the

Research is to determine what practices ethnic sme

This preview shows page 77 - 79 out of 241 pages.

research is to determine what practices ethnic SME groups undertake to meet the tax requirements, in terms of filing accurate and timely tax returns and paying their taxes on time. This research attempts to have a deeper understanding of their tax compliance behaviours and perceptions by taking into account their cultural beliefs and values. To reiterate, this study aims to answer these research questions: 1. What do ethnic SME operators perceive tax compliance to be? 2. What are the tax practices, decisions, perceptions, attitudes, and experiences of ethnic SME operators in terms of: a. Accounting systems and record-keeping responsibilities; b. Sources of tax assistance used; c. Tax payments; d. Tax spending, and e. Tax audits? 3. How do ethnic SME operators view their relationship with the tax authority and tax practitioners? 4. Does culture affect the tax compliance behaviours of SME operators and if so, how? 5. What are the policy implications and regulatory strategies required to assist SME operators to file timely and accurate tax returns and to pay their taxes on time? Given the above research aim, along with the specific, related “what” and “how” research questions, the qualitative approach is considered more suited to answer these questions (Denzin & Lincoln, 2000; Punch, 2005; Wisker, 2008). Since the intention is to acquire deeper understanding of the nature of tax compliance behaviours and decisions made, the qualitative–interpretive approach is therefore adopted. In qualitative inquiry, research usually comes about from the researcher’s prior experience in the field and from their real-life observations (Chua, 1986). This study came about as a result of the researcher’s prior tax agency experiences with SMEs from 2000 to 2005. This was discussed in section 1.5 and will be elaborated later on in section 5.4.2.1.
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64 5.3 Qualitative research and tax compliance According to Miles and Huberman (1984), the main task of qualitative research is to explicate the ways people in particular circumstances come to understand, account for, take action and manage their day to day situations. The purpose of this research is to study the ethnic operators’ understanding, practices and perceptions of tax compliance, and how their cultural values affect their behaviours and perceptions. In order to understand how perceptions are created and given meaning, the researcher needs to interact with SME operators in their normal business activity, instead of in a controlled laboratory experiment. With this, qualitative findings are therefore value laden, context sensitive, and subjective (Pinnegar & Daynes, 2007; Sarantakos, 2005). Unlike quantitative research, qualitative research is participant-centred, allowing the participants to describe their life-worlds “from inside out” instead of having assumptions imposed on them by the researcher (Denzin & Lincoln, 2005). This provides opportunities for discovering new ideas and concepts which otherwise may have been overlooked in other tax compliance research. Hence the analysis would be inductive and reflexive (Neuman, 2006; Punch, 2005; Sarantakos, 2005).
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  • Fall '16
  • tax compliance, SME Operators

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