A review of tax reliefs has revealed that property-based schemes will have cost the Exchequer almost €2 billion in terms of tax foregone.
Most of the schemes are being closed by the Government.
For many years the subject of tax reliefs has been subject of major controversy. Critics have claimed that they are used by wealthy people to reduce their tax bills.
Today the Department of Finance published the full cost of these schemes.
A review by Goodbody Economic Consultants concluded that the rural renewal scheme, which was aimed at reversing population decline in some rural areas, 'has not represented value for money'.
It said much of the housing built under the scheme had been taken by existing residents.
The review said the scheme had relatively little impact on commercial development; it acknowledged that it had helped revitalise Longford and Leitrim.
The review also revealed that one individual was able to put €25 million into a pension fund without paying tax on it on one occasion.
In the Finance Bill last week Minister for Finance Brian Cowen put a €5 million cap on tax-relieved pension funds. Individuals can now only take a tax-free lump sum of up to €1.25 million.
The Labour Spokesperson on Finance, Joan Burton, has said the review provided 'some extraordinary insights and startling information on how a selected number of the highest earners in Ireland are provided with tax shelters for pension purposes running into tens of millions'.
The review also highlights how much a variety of tax reliefs cost the Exchequer in terms of tax forgone.
Private hospitals cost €23 million, nursing homes €38 million, section 23 student accommodation costs €159 million, while childcare costs €5.7 million.
The review has prompted major changes in the use of tax schemes by the Government, some of which have been closed down in the Finance Bill.
On property tax breaks, the review says nearly all of them had been used primarily by high income earners, and had been 'a key mechanism for wealthier people to reduce their tax liabilities'.
