ACCA professionals throughout Ireland are reporting an increase in this type of service which, they say, is specifically seeking to target people at the same time as the government introduces its new technology systems to record wages online, from January 2019.

The new system requires that employees keep their online records up to date and it has a very simple process for reclaiming tax credits and refunds. ACCA warns that some unqualified online service providers seek tax payers to provide exactly the same information as will be required by the government’s new system and accordingly simply transcribes the information across.

It says some online tax refund companies are charging a percentage of peoples’ tax refund as fees when making returns on their behalf and points out that anybody can tick a box on a form and claim a tax credit, but if the tax payer is not entitled to the credit they will have to refund the amount they erroneously claimed plus Revenue interest and penalties.

In addition, some online refund companies are not disclosing who the owners of their organisation are with the public unaware of their credentials and therefore having restricted redress, no independent oversight and no comeback should such service providers make mistakes or fraudulent claims.

The professional body says that such service providers also pose a risk to the harvesting of personal data and that their percentage fee structure could act as an incentive for these companies to illegally overstate refund claims for customers when submitting returns on their behalf to Revenue. These customers have no clear route to a right of redress should they find themselves out of pocket.

Stephen O’Flaherty, chairman, ACCA Ireland, said: ‘Providing bank account details, date of birth and personal public service (PPS) number to an unqualified online tax service, leaves employees at risk of identity theft with no come back on the service or the quantity of tax refund or credit received.  

‘We would strongly advise people never to accept a percentage of a refund payment arrangement or to agree to any submission whereby the details are erroneous. 

‘Undertaking appropriate due diligence on the qualifications held by the service providers and ensuring they are regulated is simply good risk management and is recommended.  The government’s refund system is uncomplicated, and we would strongly urge people to either complete the process themselves or seek help from a trusted and known source such as a qualified accountant.’

Report by Pat Sweet