Property developers were able to avail of a special lower rate of income tax of 20%, it has emerged this evening.
The Revenue Commissioners said the special rate of tax ended in January 2009.
The 'Special Incentive Tax Rate' was introduced in the Finance Act in the year 2000.
The Revenue Commissioners said: 'The measure was intended to address the problem of a shortage of residential accommodation by increasing the supply of land for residential development.'
It applied to profits made from undeveloped land, partly developed or serviced land and land with completed houses.
Without this provision the property developers would have been liable to normal rates of 41% income tax.
The tax measure was confirmed to RTÉ News this evening following an inquiry to the Revenue Commissioners.
Earlier this year, the Government introduced an 80% windfall tax on gains made from the sale of rezoned land as part of legislation to establish the National Asset Management Agency.
