I noticed something similar with a Taiwanese family I was close to for awhile. It was customary to fight over any bill when sharing a meal. They would be quietly upset if someone actually took them up on their offer to pay without attempting to try to pay for the whole bill themselves a few times.

I know my (first generation American) father and his siblings would do the same, but only ever with each other, and it had the feel of an old joke.

Taarof definitely sounds like this taken several steps further- and sounds utterly exhausting to my emotionally stunted brain.