Consider carefully before using internet-based tax agents! By Kim Antonio
Every year we have a few instances where a client (usually a child of parents that we act for) links to one of themany internet-based tax agents to get a promised tax refund. These tax agents include “taxrefunds.co.nz”,“mytax.co.nz” and “Woohoo (nztaxrefunds)”.
Careful considerationis required before you sign up to these agents and we encourage you to makeyour child aware of the points below!
It is easy to see how they attractclients with their flashy websites and big advertising budgets including primetime television advertising. Their staffentice you to sign up by engaging with you in shopping centres and they haveeven been known to make school visits in a bid to gather clientele.
Whilst they promise you a refundand assure that they are “making tax easier”, in reality this often causes us aheadache because the return they have filed is incorrect and we are left to fixthe problem.
It is also worth investigatingtheir fees. We have seen them take up to19.5% of a tax refund! And watch outbecause they will advise IRD that their bank account is your bank accountnumber. This way they can receive yourrefund and take their cut before forwarding the remainder to you. You might use them for one year only but thisdoesn’t mean that their bank account is removed from IRD’s records.
So, if you or your child’s taxreturn is more complicated than simply PAYE salary/wages and maybe a bit ofinterest income from the bank, then you are best to leave us to sort itout. And please make sure your childrenare aware if they will be receiving dividends from a family Company or incomedistributions from a family Trust as this must be included in their personalincome tax return.
Careful considerationis required before you sign up to these agents and we encourage you to makeyour child aware of the points below!
It is easy to see how they attractclients with their flashy websites and big advertising budgets including primetime television advertising. Their staffentice you to sign up by engaging with you in shopping centres and they haveeven been known to make school visits in a bid to gather clientele.
Whilst they promise you a refundand assure that they are “making tax easier”, in reality this often causes us aheadache because the return they have filed is incorrect and we are left to fixthe problem.
It is also worth investigatingtheir fees. We have seen them take up to19.5% of a tax refund! And watch outbecause they will advise IRD that their bank account is your bank accountnumber. This way they can receive yourrefund and take their cut before forwarding the remainder to you. You might use them for one year only but thisdoesn’t mean that their bank account is removed from IRD’s records.
So, if you or your child’s taxreturn is more complicated than simply PAYE salary/wages and maybe a bit ofinterest income from the bank, then you are best to leave us to sort itout. And please make sure your childrenare aware if they will be receiving dividends from a family Company or incomedistributions from a family Trust as this must be included in their personalincome tax return.
