Friday, June 27, 2025
By FAY SIMMONS
Tribune Business Reporter
jsimmons@tribunemedia.net
A former two-time Bahamas Real Estate Association (BREA) president, now the country's ambassador to Morocco, has backed arguments that the industry should not be held liable for unpaid VAT on property sales.
William Wong, speaking to the media yesterday, said that although he understands the Government’s rationale for reforming the VAT Act given that some parties may be “finagling” how the 10 percent levy is paid on property sales, this practice does not involve real estate agents as tax payments and the execution/recording of conveyances is handled by attorneys.
“I think what entails is that they're trying to put a lot of the paperwork on real estate agents, and that lot of stuff doesn't affect us because the lawyers handle a lot of stuff. All we do is we get the client all set up, they go to the lawyers, and that's it, we are finished,” said Mr Wong.
“But I understand the Government, too, fells there is some finagling with how this VAT is paid, how the lawyers are paying for it. But don't get us involved because it's not our job. We find a buyer, we get the sale organised, and then it's put in the hands of the lawyers. After that, we finish. It's a lawyer's job to collect the money and pay the VAT. That's not our job.”
Mr Wong said that while the changes may slow down the process of closing real estate sales, it “won't be the end of the world”. His biggest issue with the change is that real estate agents will not be able to collect their commission, usually 6 percent, on the sale until the transaction is completed, possibly delaying payments for up to six months.
“It might slow down a little bit, but there won't be the end of the world. We will become more efficient. I think the Government just trying to stop the bleeding," Mr Wong added.
"It seems like some of the funds are not being registered on time, and the money is not finding itself into the Public Treasury, and everyone has to pay their fair share. We're not involved in that. We don't get involved with the paying the VAT."
“All it's going to do is cost us to get paid a lot later, because we can't get paid until everything's finished. And agents, we depend on our money. We don't get paid until the transaction is finished. And if you have got to wait six months to get paid, Lord have mercy, how will we pay our bills? So they can't put all these roadblocks in our way. Deal with the people that's causing the issue, not us. We're not the issue.”
Mr Wong said realtors work hard to connect clients with properties but are not involved in the tax collection process, so they should not be “penalised” when they have nothing to do with VAT collections.
“We're the ones that find the client. We’re the ones walking the properties, kicking the tyres. We are the ones doing all the work. And once we bring the client, they get the financing. We give it to a lawyer and it's now in the lawyer’s hands. We can't do anything else,” he added.
“It's going to only make us wait, wait, wait, and the closing process now on a house, as long as it is right now, we rely on finishing. If we can't get paid we’re in trouble. So I think they just have to rethink how this thing goes, and not penalise us. We have nothing to do with it. I agree with our president that once we turn it over to the lawyers, we're finished. Show us the money. Give us our money.”
Comments
DWW says...
It's funny that the tribune keeps removing my comments in relation to this issue.
Posted 30 June 2025, 3:44 p.m. Suggest removal
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