The Revenue Commissioners are examining what is believed to be a new tax loophole which enables property developers to avoid seven-figure bills when developing greenfield sites.
The loophole enables developers to avoid paying stamp duty at 9 per cent on development land by not purchasing the development land directly, but instead developing it "under licence" from the original owner.
A developer can also contract to purchase the land, but not actually take legal title of it, again avoiding stamp duty.
The ultimate purchaser of the buildings and the land under them will be liable for stamp duty however.
Minister for Finance Brian Cowen has confirmed that a number of developments had come to the attention of the Revenue Commissioners, who had launched a review of the situation.
Mr Cowen said he had asked for a report of the outcome of the review and he would then decide "what action, if any, is required, bearing in mind the effect on the housing market and the cost to the Exchequer".
Mr Cowen made his comments in a written reply to the Dáil after the situation was raised by Richard Bruton of Fine Gael and Joan Burton of Labour.
Mr Bruton said he was concerned about the potential loss to the taxpayer of developers avoiding 9 per cent stamp duty on development land, which could be valued in the tens of millions.
He was also concerned that any of these savings, which could be in the region of €20,000 on a three bed semi-detached house, were not being passed on to buyers and were instead being pocketed by the developers.
Ms Burton, who raised the issue with Mr Cowen last month during the debate on the Finance Bill, said it contrasted sharply with the situation for community sporting clubs, who were being refused stamp duty exemptions, which were normally given to charities for purchasing property.
She cited the case of Mallow GAA club in Co Cork, which is facing a €170,000 stamp duty bill for the purchase of a new grounds for the club. Recently the club was told by the Revenue it did not qualify for charitable status.
"You have multimillionaire property developers able to get around the stamp duty code but you can't get exemptions for GAA clubs genuinely devoted to their communities," she said.