The medium uncertainty avoidance values of the European group reinforced by

The medium uncertainty avoidance values of the

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The medium uncertainty avoidance values of the European group, reinforced by their medium term orientation and masculinity traits, caused them to be relatively disciplined with their record keeping. They used unpaid immediate family members (mainly their spouses) for the record keeping tasks to lower tax compliance costs which reflect their individualistic trait. In contrast, the low uncertainty avoidance and short term oriented Pacific and Maori groups showed less confidence, interest and discipline with their record keeping. They experienced more difficulty with filing timely tax returns, which
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107 resulted in higher stress and tax compliance cost. Hence, cultures with medium to high uncertainty avoidance, medium to long term orientation and masculinity traits were more able to file timely tax returns, compared to low uncertainty avoidance and short term oriented cultures. This is best summarised in Table 6.2 on the next page. 6.6 Summary This chapter detailed the findings regarding three main issues, which are: the perceptions of SME operators towards tax compliance; the accounting system used; and their record keeping function. All 36 operators negatively associated tax compliance with paperwork, cash outflow, stress, penalties and dealing with government bureaucracy. Some of these perceptions were linked to the cultural values of uncertainty avoidance, long term orientation, individualism-collectivism, power distance and masculinity. It was found that higher uncertainty avoidance, masculinity and medium to long term orientation contributed to a timely and more complete record keeping process. The Asian and European groups in this study showed more proficiency and confidence with their record keeping and therefore they relied less on paid assistance compared to the Maori and Pacific groups. Furthermore, the primary motivation for record keeping for the Maori and Pacific groups is to fulfil tax obligations. This research also found that a significant number of SME operators, especially from the non-Asian backgrounds, were lacking pertinent accounting and record keeping skills necessary for tax compliance. Since tax compliance requires interactions with the IRD and/or tax practitioners, the next chapter details the sources of tax assistance used by ethnic SME operators.
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108 Ethnic groups Able to file timely and accurate tax returns Specific record keeping issue Cultural dimensions Cultural values that enhance or deter ability to file tax returns on time Asian sample Yes square4 Disciplined with record keeping square4 High uncertainty avoidance square4 Long term orientation Enhance square4 Record keeping undertaken by SME operator square4 Masculinity trait square4 Long term orientation European sample Yes square4 Disciplined with record keeping square4 Medium to low uncertainty avoidance square4 Medium term orientation square4 Record keeping undertaken by SME operator or unpaid family members square4 Masculinity trait square4 Individualism square4 Medium term orientation Maori and Pacific sample No
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  • Fall '16
  • tax compliance, SME Operators

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