BE2 With the Asians they have the issues with record keeping My understanding

Be2 with the asians they have the issues with record

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(BE2) “With the Asians, they have the issues with record keeping. My understanding is that they are very astute business people but they do not necessarily want to be 100 percent transparent so we will see what they want us to see (probably a nice way to put it). It is also compounded by the fact that a lot of their activities are within their own community, so we only see stuff at the border. Where we are now, there are a lot of small businesses and I know a lot of them are done
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136 in cash, so cash reporting is an issue. How I know that they are doing cash is that I will go out and buy something and they don’t go through the cash register.”(BE6) “I suspect that some of the Asians are less likely to comply and they are more open about it. I suspect the other New Zealand businesses are also not complying but they keep their mouth shut. The Asian businesses are more straight-up on this. If you want cash jobs, it would be at this price, and if you want an invoice it will cost you more. I may find in Asian businesses, they will give you the quoted price and when you ask for the receipts they will say oh it will cost you more. But for the New Zealand businesses, they are not so open about it, but you know it is available to you if you ask to pay by cash.” (TP3) The above observations point to the permissiveness of Asians towards cash jobs. Some Asians in this sample had participated and/or were aware of cash jobs activities which were prevalent among SMEs. The findings on Asians’ participation in and permissiveness towards cash jobs is similar to the Australian findings: that Asians did not consider cash jobs to be unethical (Rothengatter, 2005a). Due to the Asians’ participation in the cash economy for personal use, it may be difficult to curb this illegal activity, especially where there is strong collective support for each other (see Chapter 3, section 3.7). This adds to the existing tax literature on cash jobs: that collectivism and strong and close knit business connections may make it harder for tax authorities to curb this illegal activity, where the group’s interest prevails over individual interests. 8.3.2 Perceptions of tax spending by Asian operators The Asian sample understood the need to pay taxes but they complained about the high tax rates and the types of tax spending. Their achievement focus and their masculinity trait (see Chapter 3, section 3.7 and Chapter 4, section 4.5.5. respectively), caused them to view welfare tax spending unfavourably, as it was seen as wasteful: “I feel it is very high. Every time I have to pay taxes, I would say my goodness, the tax amount is very high but we have no choice but to pay for it . . . When I was working, there were stories where the incomes of the people on the welfare benefit were slightly less than if they were working and because the difference is so small, there is no incentive for them to go out to work. These are abled people and it seems unfair why we have to fund them. I often ask why some of these people are not working, why are some of them having so many children and on the social welfare? I believe the money could be
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  • Fall '16
  • tax compliance, SME Operators

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