Prescott 2009 to avoid being seen as hoarding wealth for oneself Connell Conway

Prescott 2009 to avoid being seen as hoarding wealth

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(Prescott, 2009); to avoid being seen as hoarding wealth for oneself (Connell & Conway, 2000; Cowley et al., 2004); and to express their gratitude towards God and families (Meleisea, 1987; Taule'ale'ausumai, 1994; Tiatia, 1998). Some Pacific churches publicly announce their member’s giving (Meleisea, 1987) which can lead to competitive giving and financial hardships for some families (Tiatia, 1998). With their giving mentality, how might that affect Pacific operators’ ability to pay their taxes on time? This question is pertinent as persistent non tax payments can result in business failures and tax penalties. Prescott (2009) has found that majority of Pacific operators do not have proper business planning or business skills. Their reluctance to record business transactions and delaying tasks to some vague future date is symptomatic of lack of planning or urgency in business related matters (Lucas, 2009; Prescott, 2009). In addition, Prescott’s (2009) research shows that Pacific operators are unskilled in accounting, unwilling to embrace business technology and are fixated with their cash balances as measures of their business success. Their reluctance towards on-going record keeping, lack of business planning and low anxiety towards the future (McCoy & Havea, 2006) has resulted in some business failures (Prescott & Hooper, 2009). With this, how would their cultural values affect their ability to gather tax information necessary for tax returns? It is by answering this question that one could gain a better understanding of their tax behaviours and how they may differ from other ethnic groups in New Zealand.
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40 3.7 Asian cultural values and tax compliance The interactions amongst collectivistic Asians are characterised by trust and communal sharing within in-groups, with cold indifference to outsiders and out-groups (Hui & Triandis, 1985; Tung, 1996). In business, they develop long lasting relationships using spoken (rather than written) agreements and they clearly distinguish between “insiders and outsiders” (Fulop & Richards, 2002, p. 275). Asians show allegiance to the groups to which they belong (Hui & Triandis, 1985), but are individualistic (Hui, 1988) and exhibit increased opportunism towards out-groups (Chen, Peng, & Saporito, 2002). Strong Asian collectivism is manifested in the practice of guanxi or “connections” (Tung, 1996) which relates to drawing on personal networks to secure favours in business relationships (Bjerke, 2000; C. Ho & Redfern, 2010). Good guanxi is crucial for business success (Bjerke, 2000; C. Chu, 1991) as having the “right” connections with certain individuals and/or authorities (including tax authorities and government officials) is more important than having the right product and knowledge (C. Ho & Redfern, 2010; Yeung & Tung, 1996). Consequently, they take extensive measures to ensure they “do not get on the wrong side with the authority” (Gupta et al., 2008, p. 238).
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  • Fall '16
  • tax compliance, SME Operators

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