Written Answers. - Withholding Tax.

Rory O'Hanlon

Question:

127 Dr. O'Hanlon asked the Minister for Finance if he intends to amend the Finance Act to stop the practice of collecting withholding tax from persons who exclusively live and work outside the State; and if he will make a statement on the matter. [16297/96]

Withholding tax applies to the relevant providers of services in the State whether the provider is resident in the State or not. To exclude non-resident providers of services would give them a competitive advantage over residents and could encourage the setting up of non-resident subsidiaries with a view to avoiding the tax. I have no intention therefore of altering the current system.