The influence of Hofstede's cultural dimension on tax compliance behaviour of tax practitioners. Issue 1 (26th October 2021)

• Record Type: Journal Article
• Authors: Seno, Rohaida; Hashim, Hafiza Aishah; Taha, Roshaiza; Abdul Hamid, Suhaila
• Is Part Of: Asian review of accounting. Volume 30:Issue 1(2022)
• Page Start: 77
• Page End: 96
• Publication Date: 2021-10-26
• Subjects: Tax practitioner -- Hofstede's cultural dimensions -- Ethical decision-making -- Tax compliance; Accounting -- Asia -- Periodicals; Accounting -- Pacific Area -- Periodicals; Accounting -- Periodicals; 657.095
• DOI: 10.1108/ARA-10-2020-0153
• Languages: English
• ISSNs: 1321-7348

Abstract

Abstract : Purpose: The purpose of this paper is to determine whether Hofstede's cultural dimensions have a significant relationship with ethical decision-making among tax practitioners while performing their duties in ensuring tax compliance among taxpayers. Design/methodology/approach: A structured questionnaire was used to collect data from tax practitioners in the state of Terengganu, Malaysia. Two hundred questionnaires were distributed via Google Forms and email to tax practitioners who were selected from the Inland Revenue Board of Malaysia website using a mixture of systematic random and snowball sampling approaches. The Statistical Package for Social Sciences software program was used to analyse the collected data. Findings: The results show that power distance (PD), individualism (IND) and uncertainty avoidance (UAV) have a significant relationship with ethical decision-making, whereas masculinity (MAS) has no significant relationship with ethical decision-making among tax practitioners while carrying out their duties. The positive relationship of PD and of IND with decision-making behaviour indicates that ethical decision-making is highly practised in a low PD and low IND culture rather than in a high PD and high IND culture. In contrast, UAV shows a negative beta sign, which indicates that tax practitioners tend to practise ethical decision-making in a high UAV culture. Originality/value: This study fills a gap in the literature in regard to the influence of culture on tax compliance particularly among tax practitioners in Malaysia. The study shows how culture is related to the decision-making practices of tax practitioners while performing their role as an intermediary between their clients and the government. It is worthwhile to examine the decision-making of tax practitioners because the results of such an examination not only provide some insights into the professional practices of accountants that will be of interest to the relevant authorities such as the Malaysian Institute of Accountants, they also offer some information that will be of assistance to higher learning institutions in formulating accounting programmes to produce the future generation of accountants.