The Taoiseach admitted today it was not fair that some of the country's most wealthy people were evading taxes.
"Do I think it's fair that people play the system? No I don't," Mr Ahern told the Dáil. "But tax incentives and reliefs are not loopholes or avoidance mechanisms in the strict sense, they are brought in purposely by successive Governments to stimulate investment."
He said they served a useful purpose but were not designed so people could "be so clever as to pay nothing" and claimed certain allowances would end by 2006.
Labour Party leader Mr Pat Rabbitte told the Dáil that 242 people with income between €100,000 and €1 million paid no tax at all.
He asked the Taoiseach if he was satisfied that those on the minimum wage were being taxed while the super-wealthy could arrange their affairs in such a way that they were liable for no tax at all. He claimed the response of the tax advice industry was not very compelling.
"They say why bother, when all of these schemes are going to be finished by 2006," he said. "But we have had announcements like that down the years and they have never finished."
Mr Rabbitte said former Minister for Finance, Mr McCreevy had promised tax incentives due to expire this year would end but later extended them until July 2006.
"Do you think the existence of these schemes is justified? Are you going to extend them again?" he asked the Taoiseach.
Mr Ahern said there were reasons why certain people had a nil liability, but added that if people earning €100,000 a year did so "that was not the game."
"It's clear that some high earners continue to achieve substantial reductions in their tax liabilities as a result of these reliefs," he said.
The Taoiseach added that the introduction of a minimum tax would only prompt the tax compliance industry to play to that figure. "My view is that you are better to play to the alternative and the alternative is the limit," he said.
PA