Overseas sellers on Trademe with NZ Bank Accounts

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Forums › Finance and wealth management › Overseas sellers on Trademe with NZ Bank Accounts

quebec

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Ultimate Geek

#220321 6-Aug-2017 10:24

I'm sure others have also noticed overseas sellers on Trademe. I'm wondering how they have NZ bank accounts, did they actually come here to open a bank account and form a company or how does it all work? Are they liable for taxes in NZh?

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#1839757 6-Aug-2017 10:24

Hmmmm. Here we go.

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Linux

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#1839763 6-Aug-2017 10:31

Maybe it's a friends / family member bank account number

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freitasm

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#1839773 6-Aug-2017 11:10

Probably people who fell for that "Work from home" scam. Scammers contact people asking to represent then to receive money and forward to overseas "company" via Western Union. These people think they are working from home when in fact the are just participating in a scam.

richms

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#1839813 6-Aug-2017 12:00

No idea, but the lack of a NZ search filter will be hurting south island sellers since I set it to north island to not see all the UK sellers on there.

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#1839822 6-Aug-2017 12:41

Could they not just be expat Kiwis?

mdf

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#1839846 6-Aug-2017 13:48

Businesses operate internationally all the time. It's not that remarkable that an overseas business has an NZ bank account. In fact, the Companies Act specifically says you don't carry on business in NZ just because you have a bank account here:

http://www.legislation.govt.nz/act/public/1993/0105/latest/DLM322861.html

As to the tax rules, that's a whole other even more complicated kettle of fish. From what I gather (no inside info) IRD watches trademe like a hawk and isn't shy about reminding people of their tax obligations. I'd guess they will be compliant with NZ tax laws.

quebec

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Ultimate Geek

#1839932 6-Aug-2017 15:35

I thought you were not allowed to open a bank account or run business unless you are here to open account and form a company. What about after sales support or overseas sellers offering warranty? Does NZ consumers guarantees act apply to them and if yes how will you take them to disputes tribunal if they are not even in the country?? I recently heard about a case where overseas seller selling online and shipping from China, money coming to local NZ bank account. Some customers complained to bank about delayed shipments and bank froze the account!!

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#1839963 6-Aug-2017 16:19

quebec:

I thought you were not allowed to open a bank account or run business unless you are here to open account and form a company. What about after sales support or overseas sellers offering warranty? Does NZ consumers guarantees act apply to them and if yes how will you take them to disputes tribunal if they are not even in the country?? I recently heard about a case where overseas seller selling online and shipping from China, money coming to local NZ bank account. Some customers complained to bank about delayed shipments and bank froze the account!!

According to trademes website, if a trader is 'in trade', then consumers are supposed to be protected by NZs laws such as the CGA. Although I don't know how trademe can enforce that on 'in trade' sellers overseas, unless trademe gets involved. http://www.trademe.co.nz/help/786/in-trade-disclosure

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#1840011 6-Aug-2017 17:03

I still think my theory is the most plausible...

quebec

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Ultimate Geek

#1840069 6-Aug-2017 17:50

freitasm:
I still think my theory is the most plausible...

But most of them have known presence online in other countries like the UK, Australian and USA sellers. Some have even kept their trademe user name same or similar to the website they are running in their home country. Surely these can't be scammers. This is most probably what trademe calls drop ship and they say they are pretty strict about drop shipping and won't allow anyone without verifying them etc. Wonder how they pay tax on their income as if they are taking money in NZ bank account they should be liable for tax here?

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#1840073 6-Aug-2017 17:52

Well, that was not clear from your first post. But in any case this is how that scam operates. So there might be some well know operators, but everyone should be careful with scammers too.

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#1840084 6-Aug-2017 18:02

Anyone globally can legally open a NZ bank account, assuming they can be properly idenified. Tax situation is dependent on reciprocal tax arrangements between NZ and other countries.

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#1840280 6-Aug-2017 22:10

freitasm: Probably people who fell for that "Work from home" scam. Scammers contact people asking to represent then to receive money and forward to overseas "company" via Western Union. These people think they are working from home when in fact the are just participating in a scam.

So, do you mean the sellers on TM are scam artists?