Company misled customers over tax payment claims

The majority of the Complaints Board said My Tax's claim was misleading. Photo / File

A television advertisement for a tax refund company has been found to have misled its customers into believing 90 per cent of Kiwis overpay their taxes.

A complaint was made to the Advertising Standards Authority, regarding an advertisement that played on television last month for tax refund company My Tax.

The advertisement showed a man in a hairdressing salon talking to a woman about her tax refund.

The advertisement said, "Money on your mind? My Tax has found that nine out of ten people are overpaying on their tax. Chances are you're one of them."

A complainant said the claim that nine out of ten people were overpaying their tax was "misleading and unable to be substantiated".

In its written decision the Complaints Board said a minority of the board was of the view the advertisement was clear in positioning the claim as applying to My Tax's customers and was unlikely to mislead consumers.

However, the majority of the board said the advertisement implied the claim applied to all New Zealanders, not just My Tax customers.

It said this was likely to mislead consumers into thinking 90 per cent of New Zealanders were overpaying on their tax.

The board said without clarification the advertisement was likely to mislead consumers, and the complaint was upheld.

My Tax were not immediately available for comment.

- NZME