Social networks and tax (non‐)compliance in a multicultural nation : Emerging themes from a focus‐group study among ethnic minorities in Australia

Purpose – The purpose of this article is to explore the role that different structures of socially embedded networks themselves play in tax non‐compliance or evasion, and the contribution that an application of network analysis can make to the study of tax compliance regulation. Design/methodology/approach – This exploratory study applies a network approach and uses focus‐group interviewing to unveil tax evasive behaviours that are deeply embedded in specifically selected and structurally different trading networks. Findings – Indicate the kinds of difficulties that tax regulators may face in their attempts to deal with a range of law‐defying practices, which operate both within and among some structurally diversified (social) trading networks of a multicultural nation. The data confirm convincingly that tax evasive behaviours are not solely peculiar to immigrant (NESB) business networks, but are mirroring many beliefs, norms and informal practices that also exist strongly in non‐immigrant networks. Practical implications – A mixed‐embedded network approach that grasps the rich contexts and complexities involved in the informal behaviours of “networked” small‐business entrepreneurs is to be regarded as a powerful tool in the governance of modern taxation systems. Originality/value – Fills a gap in the research (literature) on the tax‐compliance behaviours among citizens of a multicultural nation and may have potential for a wider application.