Commerce Commission warns tax refund agents
Some tax agents are not fully disclosing their costs or customer obligations, the government regulator says.
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The Commerce Commission has issued a stern warning after investigating tax refund agents.
The government regulator has written to 30 personal tax summary intermediaries - tax agents that process income tax refunds for salary and wage earners - demanding they review their websites and marketing practices.
In particular, the commission had concerns that the cost of services and ongoing contractual obligations with customers were not being clearly disclosed, which might breach the Fair Trading Act.
The investigation follows complaints from the public.
Commission competition branch manager Stuart Wallace said in a press release this morning: “Our general advice to consumers is that they can find out for free whether they are entitled to a refund and apply for it themselves through Inland Revenue.
"But if consumers do choose to use a PTSI, we want to be sure they are being given accurate information."
Intermediary tax companies have sprung up since salary and wage earners are no longer required to file returns.
Often they're based in temporary locations, such as shopping centres, and on the internet.
Mr Wallace says the commission has written to 30 companies urging them to review their websites and marketing practices.
The commission warned some companies may be failing to adequately disclose what it costs consumers to use their services, obliging consumers to use their service in future years without making this clear and making misleading claims about turnaround times.
The industry will be monitored and action will be taken if necessary, Mr Wallace says.
NBR staff
Tue, 22 May 2012
Tue, 22 May 2012
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Commerce Commission warns tax refund agents
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