and Rothengatter 2005a used focus groups to seek SMEs views on the tax evasion

And rothengatter 2005a used focus groups to seek smes

This preview shows page 175 - 177 out of 241 pages.

and Rothengatter (2005a) used focus groups to seek SMEs’ views on the tax evasion perceptions and practices. As these issues have been extensively researched, this thesis considers, instead, the processes and decisions SME operators undertake to comply with the tax regulations. Other attempts to study culture and tax compliance have been quantitative and experimental using cross-cultural analysis on general taxpayers (Alm & Torgler, 2006; Frey & Torgler, 2007; G. Richardson, 2007). Intra-cultural research on ethnicity and tax evasion perceptions was undertaken by Birch et al. (2003) using New Zealand students. However, SME taxpayers cannot be equated to general taxpayers or students, as they have regressive compliance costs; have some tax withheld at source but not all the time; have greater opportunity to evade taxes; and are tax collectors for consumption and employment related taxes, as discussed in Chapter 1, section 1.2.1 and Chapter 2, section 2.3. This research therefore aims to study SME operators’ tax compliance behaviours and how their tax decisions can be inferred from their cultural backgrounds.
Image of page 175
162 The methodological approach used for this research is qualitative due to the reasons given in Chapter 5, sections 5.2 to 5.4. This research adds to the currently sparse qualitative tax research on SMEs in two ways. First, it incorporates the constructivist- interpretivist paradigm in acknowledging the multiplicities and uniqueness of each participant’s constructions. As collectivistic groups are uniquely different from individualistic Europeans, this study provides some insights of how they may differ from the norm in their approach, priority, and intensity towards tax compliance. Second, the use of business experts to corroborate the accounts of ethnic operators adds another perspective of tax compliance which has largely been overlooked in most of the tax literature on SMEs. This perspective shows that tax compliance activity for ethnic groups is more than record keeping and cash management, but is also about managing uncertainty, demands from networks, extended families and churches, and about how taxpayers view authorities, time and relationship building. 9.5 Policy and Practice recommendations This research shows that different ethnic operators perceived tax compliance differently and therefore adopt different approaches and priorities to discharge their tax compliance obligations. The findings from this research can help tax authorities to identify compliance problems and challenges at the grass roots level and to take corrective measures to improve compliance and increase tax revenues. To strategically encourage voluntary compliance from the ethnic groups, the tax authorities, tax practitioners and business experts need to adopt a suite of monitoring and assistance measures, instead of the “one-size fits all” approach, as shown in the next few subsections. 9.5.1 Monitoring and assisting Asian business taxpayers with tax compliance Asians in this study had been found to be collectivistic, had high to medium uncertainty avoidance, high power distance, masculinity traits and were long term orientated. They:
Image of page 176
Image of page 177

You've reached the end of your free preview.

Want to read all 241 pages?

  • Fall '16
  • tax compliance, SME Operators

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask ( soon) You can ask (will expire )
Answers in as fast as 15 minutes
A+ icon
Ask Expert Tutors