THE Revenue Commissioners have taken another step towards eliminating tax evasion in industries such as construction.

The Commissioners have moved to tighten up the tax deduction system operated between contractors and sub-contractors following recommendations of a black economy monitoring group.

The changes, which will be introduced next month, apply to the construction, forestry and meat processing sectors.

Contractors and sub-contractors will now have to complete a joint declaration that their contract does not form an employee/employer relationship.

The sub-contractors' dates of birth and RSI numbers will have to be included on all relevant documentation used in the tax deduction scheme. This information will assist the Commissioners to identify individuals involved.

The Commissioners said yesterday that the monitoring group is currently investigating allegations that Northern Ireland contractors working in the Republic have a tax based competitive advantage over their counterparts here. The group hopes to make recommendations on the issue later this year.