NRWT). There is a stop”: “back if the buyer’s conveyancing agent fails to withhold correctly, a secondary liability can be placed on the seller’s conveyancing agent. Recommendation: not recommended. be seen Contrary to as being international fairer for and New buyers the Zealand’s – compliance current burden and withholding cost are taxes where the legally borne withholding by the seller liability on the (i.e. by the payer. There is person with no stop” “back the ultimate if the agent fails tax liability). to withhold. The seller’s conveyancing agent may have more immediate Seller’s conveyancing access to information agent (e.g. about the solicitor or conveyancer) seller’s offshore status. The seller’s conveyancing agent deals with other expenses at the time of settlement (e.g. mortgages and rates). Recommendation: recommended if a number of safeguards are introduced to protect the integrity of the withholding tax. When should the Commissioner be paid before other disbursements? In situations where the buyer’s conveyancing agent withholds RLWT, the amount withheld would be paid to Inland Revenue and the remaining funds would then be passed to
NRWT). There is a “back stop”: if the buyer’s conveyancing agent fails to withhold correctly, a secondary liability can be placed on the seller’s conveyancing agent. Recommendation: not recommended. Seller’s conveyancing agent (e.g. solicitor or conveyancer) be seen as being fairer for buyers – the compliance burden and cost are legally borne by the seller (i.e. by the person with the ultimate tax liability). The seller’s conveyancing agent may have more immediate access to information about the seller’s offshore status. The seller’s conveyancing agent deals with other expenses at the time of settlement (e.g. mortgages and rates). Contrary to international and New Zealand’s current withholding taxes where the withholding liability on the payer. There is no “back stop” if the agent fails to withhold. Recommendation: recommended if a number of safeguards are introduced to protect the integrity of the withholding tax. When should the Commissioner be paid before other disbursements? In situations where the buyer’s conveyancing agent withholds RLWT, the amount withheld would be paid to Inland Revenue and the remaining funds would then be passed to
2015-ris-rlwtgstossl-bill-3.docx