Ok, I found my rulebook here goes the quotes:

This is under "Conquest and Occupation" under the Occupation subheading on
page 66:

"When a regent occupies a province, he can reduce any or all law, guild, or
temple holdings to zero"... As long as the conqueror occupies the province
with at least one unit, he can perform taxation and replace the ruler in all
respects...

Now, this snippet is obviously intended to portray a foreign regent
occupying another's provinces. I believe that the reduction to zero stems
from the fact that the foreign regent cannot destroy the holding in its
entirety due to not having full (regency-wise) information for the province
and thus cannot root out the full influence of the holdings regent.

Next, under the "occupying your own provinces colored box":

"A regent can use a declare war action to occupy a province he already
rules. The result is his option to *destroy* (emphasis mine) other regents'
holdings in his territory.

Now, the difference here is that the current landed regent has the
(regency-wise) knowledge of all the holdings regent's influence and thus can
root out all enemy individuals, where the foreign one cannot.

Memnoch

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