I read in today Irish Times that "Thousands of property owners could face fines or other penalties as a result of a Revenue clampdown on abuse of stamp duty relief".

The investigation, based upon a pilot project in the Dublin Area, is targeting individuals availing of owner occupier stamp duty relief who rent out their properties within 5 years of purchase.The pilot scheme will involve a random sample of 1,000 transactions from 2003 where purchasers availed of full "owner-occupier" relief. The investigation is in response to concerns that individuals may have claimed stamp duty relief but subsquently rent out the property within the 5 year period. By doing so the stamp duty, plus interest and penalties is repayable to the Revenue under "claw-back", a requirement of law.

Now tax evasion costs us all money, and is illegal, however I cannot feel that this is an attempt by revenue to punish those who have struggled to buy a house/apartment in the first place is now going to have to cough up more hard earned cash. I doubt very much that when a "first time" buyer who finally has saved enough money to actually buy a property would be aware of such laws, relating to "claw-back" and I doubt that solicitors would sit them down and say "well congradulations the house is yours, here are your keys, and d'ont leave and rent out your house for the next 5 years, or you'll end up paying "claw back". I can't but consider someone who is transferred due to work to another part of the country and decides to rent out the house for that period that they are working away, are they going to be taxed?.It should also be noted that should you sell the property to an unrelated third party within the 5 years, the "claw back" does not apply, presumably due to the fact that they'll get the stamp duty from the new buyer anyway. Its a well known fact that selling houses is an expensive "hobby" with Auctioneers, Solicitors and Revenue all getting their cut of your money.

Or consider the couple who after a few years have earned enough money to buy another house and decide to "hang on" to the first property as part of planning for their future and perhaps the future of their children.

The Irish Government took in some €3.7bn in stamp duty in 2006, I'dont know what the split between individuals and developers was,the official website of the Department of Finance is "presently under construction",but be assured that a considerable amount by paid by "joe public" who it appears will be asked to cough up again, should they have a liability.

Revenue went on to say that "The individuals involved have been contacted and requested to furnish specific information". Again many people simply do not hang on to all pieces of documentation when buying a home, so its off to the solicitor to dig out what is needed, some solicitors may not charge and some may. I have a feeling that tax advisers are going to be busy on this one.

In Brian Cowens Budget speech in Dec 06, he said "In the current market situation, any stamp duty cuts would more likely than not be incorporated into the sale price and so end up in the pocket of the seller." It would appear that its the Government that will get the money in its pocket, and just as the SSIA's  begin to mature.

A further ironic aspect to this is the fact that the Government has been telling us that you should be providing for your retirement by making pension contributions. To that end they provide you will generous tax deductions at the marginal rate, should you be paying tax at that rate, as property has historically being a very good element of any investment portfolio many people have held houses which they would expect to increase in value over the long term and thereby provide them with additional income in retirement, and thereby reducing their dependency on the state.

As always it would appear that if you show any willingness to provide for your family's future, the taxman cometh, and the taxman taketh away.