Publication: The Influence Of Hofstede’s Cultural Dimension On Tax Compliance Behaviour Of Tax Practitioners
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Date
2022
Journal Title
Journal ISSN
Volume Title
Publisher
Emerald Publishing
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.
Description
Volume: 30 No: 1 (pp.: 77-96)
Keywords
Tax practitioner, Hofstede’s cultural dimensions, Ethical decision-making, Tax compliance Paper type Research paper