An unclear message went out from Government at the end of 2004 in relation to tax relief schemes used by high net worth individuals.

The Budget and comments from the Taoiseach, Mr Ahern, seemed to indicate the writing was on the wall for a number of these schemes.

The Minister for Finance, Mr Cowen, in his Budget, announced a comprehensive review of tax incentive schemes.

"I am now making it clear that I intend to include appropriate follow-up measures in next year's budget," he said.

On RTÉ radio, the Taoiseach said "the game is up" for rich people who use tax schemes to avoid a significant amount of their tax liabilities.

By year's end local authorities around the State were experiencing unprecedented interest in the lodgement of planning applications for hotels, multi-storey car parks and other developments that qualify under existing tax schemes.

Background documentation given out at the time of the Budget stated that the review to be carried out was to include an examination of the issue of the extent to which use of such reliefs by any individual could be limited.

Data on the cost to the Exchequer of tax relief schemes concerning stallions and greyhounds, and the earnings of artists, is due to become available during 2005.

External consultants are to be asked to review tax reliefs concerning: urban renewal; rural renewal; town renewal; living-over-the-shop; multi-storey car parks; park and ride; student accommodation; third- level buildings; hotels and holiday cottages; nursing homes; private hospitals; sports clinics; and childcare facilities.

However, nine of the tax reliefs due to be examined are already scheduled for abolition in July 2006. In fact they were given a stay of execution in the December 2003 budget.

The nine due for abolition in 2006 are property-based reliefs.

It is possible, given that no-one can know the outcome of the reviews until they are completed, that they could result in recommendations that some or many of these be retained.

During 2004 there was controversy when it emerged that some millionaires avoid paying any tax through the uptake of tax relief schemes.

The Labour Party's finance spokeswoman Ms Joan Burton, managed to glean some figures from the Department of Finance in October.

These figures showed that 11 millionaires paid no tax at all in 2001, through the use of the various tax reliefs available. A total of 242 people who earned from €100,000 to €1 million also had a zero tax rate in 2001.

A further 149 single people and married couples had paid an effective rate of 20 per cent or less.

Ms Burton said her party would be seeking the introduction of a minimum tax rate, that is a tax rate below which no-one could go irrespective of their use of relief schemes.

The Department of Finance, however, fears that the establishment of any such rate would create a minimum towards which many high-income earnings, who currently pay higher rates, would aspire.