example many Pacific SME operators practice common sharing and reciprocal

Example many pacific sme operators practice common

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example, many Pacific SME operators practice common sharing and reciprocal relationships (Helu-Thaman, 1995; Prescott & Hooper, 2009), which result in tax payment difficulties. In general, tribal Maori are highly collectivistic as they have strong affiliations to their whanau (extended family), hapu (sub-tribe) and iwi (tribe) (Mead, 2003; Warriner, 2007). These affiliations demand that group obligations prevail over individual interest, but over the last decade there is an increasing disconnectedness to the extended families in urban Maori (National Urban Maori Authority, 2010). Given the changing cultural values of Maori, it would be interesting to gather evidence as to how they comply with the New Zealand tax requirements. Historically, most Maori and Pacific businesses were based around subsistence agriculture and small scale bartering (Crocombe, 2008; Henry, 2007). On the whole, large scale commercial business endeavours are relatively recent developments compared to European and Asian businesses. With their delayed exposure to commercial businesses, some grapple with issues of profitability and cash management, necessary for successful tax compliance (Henry, 2007; Prescott & Hooper, 2009). Migrant Asians are, on average, more qualified than their New Zealand born counterparts due to the strict immigration entry procedure (Pio, 2010). Business migrants are predominantly skilled migrants, are likely to own property, and are reported to dislike the New Zealand tax system (Pio, 2010). Over the last two decades, Asians have migrated to New Zealand with the hope for better work and education opportunities for themselves and their families (Department of Labour, 2010). Research has classified Maori, Pacific Peoples and Asians as collectivistic in comparison to Europeans, who are generally more individualistic (Begley & Tan, 2001;
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35 Crocombe, 2008; Earley & Gibson, 1998; J. Patterson, 1992). Individualistic traits have been noted as one of the factors for successful businesses (Earley & Gibson, 1998; McGrath, MacMillan, & Scheinberg, 1992) but Asians have also shown considerable business success due to their extensive business networks (Morris & Schindebutte, 2005; Tung, 1996). Much business and tax information takes place within these networks (Ahlstrom, Chen, & Yeh, 2010; Basu, 2006; Rothengatter, 2005a). Contributions from extended families in terms of labour, finances, business knowledge, and emotional support to Maori, Pacific and Asian business operators (Crocombe, 2008; Mataira, 2000; Ram, 1994; Ram, Smallbone, & Deakins, 2002; Tsang, 2002) demonstrate their collectivistic traits. Though Maori and Pacific groups have strong kinship and family ties (R. Duncan, 2008; Henry, 2007), they lack business networks to assist with their business decisions, including tax compliance activities (Baker, 2007; NZIER, 2007). The emphasis placed on reciprocal relationships can pressure Maori and Pacific operators to give up business resources and time to fulfil kinship obligations, such as retaining unproductive staff, giving free or discounted goods, employing consensus business decision making processes and using tax monies to meet family needs (Cahn, 2008; Mataira, 2000; Prescott & Hooper, 2009; Warriner, 2007). Fulfilling kinship obligations at the expense
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  • Fall '16
  • tax compliance, SME Operators

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