The Revenue Commissioners are examining recent reports concerning the use of legislation designed to boost the funds industry to create tax efficient vehicles for property investments and will act to close any loopholes, according to the Minister for Finance.

Michael Noonan said, in a reply to Sinn Féin’s Pearse Doherty, that Revenue was “examining recent media coverage” concerning the use of new fund legislation for property projects.

“Should these investigations uncover tax avoidance schemes or abuse,” he said, “which erode the tax base and cause reputational issues . . . then appropriate action will be taken and any necessary legislative changes that may be required will be put forward.”

The Irish Collective Asset-Management Vehicle, or ICAV, was established by the Government last year as a way to encourage new fund investment into Ireland.

Transfer

The Sunday Times has reported that the structure was used by businessman Denis O’Brien, who transferred ownership of the LXV building – the former Canada House on Dublin’s Stephen’s Green – into an ICAV last year.

Mr O’Brien subsequently sold the building earlier this year for about €85 million.

Central Bank records show that the ICAV was established by William Fry solicitors and that the director of the ICAV is listed as an executive with Davy Stockbrokers.