Tax compliance and cultural values: The impact of “individualism and collectivism” on the behaviour of New Zealand small business owners

Published on 01 Jul 16 by "AUSTRALIAN TAX FORUM" JOURNAL ARTICLE

Due to changes in immigration rules and globalisation, most developed countries including Australia, Canada, New Zealand, the United Kingdom and the United States of America are becoming more culturally diverse. The consequence of cultural diversity challenges the present assumption of homogenous resident taxpayers. This leads to the need to examine existing tax policies and administration. Sparse research on tax compliance and culture also provides the rationale for an in depth qualitative study of ethnic small business taxpayers’ compliance behaviours.

This study examines the attitudes and abilities of small business operators in New Zealand towards paying their taxes on time. The small business operators are categorised, using Statistics New Zealand categories, into New Zealand’s four largest ethnic taxpayer groups: Europeans, Asians, Maori and Pacific peoples. The study adopts a qualitative research methodology and evaluates the taxpayers’ behaviour through the lens of the cultural values of “individualism” and “collectivism”. The results of this study are relevant for tax administrators, academics and practitioners in New Zealand and also Australia, in view of the fact that Australia is also a multicultural nation.

Author profiles

Sue YONG

Sue is a Senior Lecturer in Taxation and Accounting, AUT University, Auckland, New Zealand.
Current at 1 July 2016

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Dr Fiona Martin CTA

Fiona is a Professor of Taxation and Business Law School of Taxation & Business Law UNSW Business School University of New South Wales. - Current at 29 May 2019

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