The Minister for Finance, Mr McCreevy, this afternoon vowed to "close various tax loopholes and modernise the tax system" in an effort to stymie tax dodgers who, he said, could be "very creative" when avoiding tax.
Speaking at the publication of the Finance Bill for 2003, he also signaled that he would be placing the tax free status of the bloodstock industry under greater scrutiny by insisting that race horse owners submit returns showing income made from stud farm fees.
Greyhound stud fees and profits from forestry investments will also come under such scrutiny.
This could be a precursor to the introduction of taxes in these industries although that is not expected for at least three years.
The Finance Bill, which confirms changes announced in the budget and sets out the details of other changes to be made, introduces nine new anti-avoidance measures, in addition to three announced during the minister's budget speech in early December.
Interest relief for investors will no longer be available where money has been borrowed by one spouse to purchase the other spouse's residential property, except in the case of legal separation or divorce.
The loophole which allows the transfer of allowances on buildings from companies to individual investors is also being closed while tax relief on student accommodation was also recently stopped.
The Bill also changes the time frame used to calculate capital gains tax owed by businesses.
At present the tax is paid on revenue from the preceding year, but changes made to the Finance Bill mean that payments will have to be made by October 31st on gains made in the first three quarters of the year.
Tax due on transactions made during the final quarter will have to be paid by January 31st of the following year. This change should earn the Government - a windfall of close to €250 million in 2003.
The Bill also includes a series of measures to modernise the tax system - both measures to make provisions across different taxes more coherent and measures to improve enforcement.
These include a new provision covering the refund of overpaid taxes and interests on such refunds.
Measures are also being introduced to facilitate the prosecution of those found to be in breach of the tax laws. The bill will enable the Government to enter into Tax Information Exchange Agreements with states considered to be tax havens.
