asked the Minister for Finance if he is aware that Leitrim County Council are deducting income tax from moneys payable to (a) quarry owners, (b) building contractors and (c) suppliers of goods; and if this practice is in accordance with the regulations made under the Finance Acts.
Ceisteanna—Questions. Oral Answers. - Income Tax Deductions.
26.
Where under a contract for the supply of goods or materials, including quarried materials, the supplier participates in the actual carrying out of construction operations, payments made to him for the goods or materials supplied are subject to deduction of tax under section 17 of the Finance Act, 1970, and the relevant regulations but, where the supplier does not participate in the carrying out of such operations, tax is not deductible from payments made to him.
Payments made to a building contractor, who participates in construction operations are subject to deduction of tax where—
(a) the work has been sub-contracted to such a building contractor, or
(b) the person by whom the payment is being made is carrying on a business which includes the erection of buildings.
The precise position as to the circumstances in which tax is deductible has recently been explained to the Leitrim County Council.