therefore there is likelihood they will experience similar tax compliance

Therefore there is likelihood they will experience

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therefore there is likelihood they will experience similar tax compliance perceptions, practices and behaviours. On the other hand, their cultural values are most dissimilar to the European group which indicates that the most contrasting tax compliance behaviours would be between European on the one hand and Maori and Pacific groups on the other.
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59 Taxpayers under the New Zealand self assessment tax regime are expected to independently calculate their tax liabilities and pay their taxes, which implicitly assumes low power distance, medium to high uncertainty avoidance, individualism and medium to long term orientation. As these implicit cultural values are more congruent with the European cultural values, there is a greater likelihood that Europeans may face fewer tax compliance challenges compared to the Maori and Pacific groups. On the other hand, the Asian group has three cultural traits similar to the European group which are medium term orientation, high and medium UA and masculinity. On the other hand, they differ in cultural values of PD and collectivism. Given that, these two groups may experience some similar tax compliance behaviours and practices but not all. Since this thesis is an intra-cultural study, it would be worthwhile examining prior literature that has used Hofstede’s framework for studying ethnic groups within the same country. 4.7 Intra-cultural studies and Hofstede’s cultural framework The majority of studies on culture have been focused on the national level of analysis and compare aggregated scales of cultural values across countries (Harrison & McKinnon, 1999; Morris, Davis, & Allen, 1994). Few studies examine the “effect of personal cultural values on attitudes and behaviours at the individual level” (A. Cohen, 2007, p. 274). Although the main justification for examining cultural values is that these values affect people’s perception of given situations (Schwartz, 1999; Schwartz, Sagiv, & Boehnke, 2000), few studies had actually test this claim in general (A. Cohen, 2007). This is relevant since each person will interpret a situation differently given their cultural values and that different interpretations can lead to different actions. Cohen’s (2007) intra-cultural study of work commitment by the teachers and their relationships with authority figures (school principal) has found strong support for Hofstede’s framework. The sample groups are secular Jews, orthodox Jews, kibbutz teachers, Druze and Arabs, and his ANOVA findings discover substantial differences between the groups in PD, individualism-collectivism, masculinity-femininity and UA. He finds that the Arab, Druze and orthodox Jewish groups have higher levels of masculinity, collectivism, PD and UA than secular Jews and kibbutz members. As a result of these cultural differences, their work commitments and relationships with their
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60 superiors (the principals) differ significantly. In addition, the high PD Arabs, Druze and orthodox Jews show less initiative in their work commitments whereas the lower PD secular Jews and kibbutz teachers have more informal relationships with their superiors.
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  • Fall '16
  • tax compliance, SME Operators

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