However given their cultural values do they also have more tax compliance

However given their cultural values do they also have

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However, given their cultural values, do they also have more tax compliance success than the other ethnic groups? Answers to this question can be sought from their tax payment experiences and perceptions of tax compliance. 3.5 Maori cultural values and tax compliance Maori emphasised nurturing interpersonal collective relationships through mutuality, aroha (love) and retaining one’s mana (aura and prestige) (Mead, 2003; J. Patterson, 1992). With this, the needs of the collective often override the individual’s needs, as refusal to comply can stain one’s mana, considered unbearable for collectivistic Maori (Warriner, 2007). In return, Maori operators can expect financial and emotional support, business information, and labour assistance from extended families when needed (De Bruin & Mataira, 2003; Henry, 2007; Mataira, 2000; Zapalska, Perry, & Dabb, 2003). Maori self employed have been identified as having relatively less formal tertiary education and/or trade qualifications than non-Maori (Zapalska, Perry, et al., 2003). They are less exposed to business related subjects whilst at school and many have ventured into business without much business knowledge, experience or planning (Frederick & Henry, 2004). This resulted in them having “higher failure rates compared to non-Maori businesses” (Small Business Advisory Group, 2008, p. 11). In addition, there are several factors that contribute to their business failures. They include: multiple title land ownership (Warriner, 2007); lack of business knowledge and skills (Frederick & Henry, 2004); poor governance and compliance capabilities (Frederick & Henry, 2004); and incorrect perception of wealth accumulation (De Bruin & Mataira, 2003; Mahuta, 1989). Maori collectivism is reflected in their joint land ownership and though they are asset rich, they are cash poor (NZIER, 2007), as their land assets are considered unsuitable for commercial development or security for borrowings (De Bruin & Mataira, 2003; Warriner, 2007). Their lack of suitable security prohibits many from mainstream finance and a survey reveals that only 35 percent of Maori businesses have bank loans (Zapalska, Dabb, et al., 2003). Their collective mentality encourages them to “to utilise and share their possession which contrast(s) to the accumulate and acquire dispositions of non-Maori” (De Bruin & Mataira, 2003, p. 179). Given that, it would be fruitful to
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39 determine how Maori operators fare in terms of filing their tax returns and paying their taxes, given that their cultural values are different from what is required under the self assessment tax regime. 3.6 Pacific cultural values and tax compliance The collective Pacific traits encourage individuals to put the group’s interest ahead of their own needs by giving and sharing their resources (Cowley, Paterson, & Williams, 2004). Examples of their sharing mentality include giving towards the extended families (Cahn, 2008; Kramer & Herbig, 1994),overseas remittances (R. Brown, 1994; Tisdell, 2000) and church giving (Macpherson & Macpherson, 2004; Meleisea, 1987). Their motivation for giving is: to maintain their social standing within the community
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  • Fall '16
  • tax compliance, SME Operators

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