An investigation is underway into whether vulture funds are using charitable status to try and avoid tax.

Social Democrats TD Stephen Donnelly (pictured) has raised it in the Dáil and suggested it could cost the taxpayer tens of billions of euro.

The Tánaiste has said she wants the charity regulator to examine it.

And Frances Fitzgerald has said Revenue and the Department of Finance are also carrying out probes and any tax loophole will be closed: “The Minister for Finance will obviously take note of the outcome of the investigations that the revenue and Department of Finance are doing at present in relation to this issue.

“And no doubt if it needs addressing, we will address it in a comprehensive way, in the budget but I think it is important to have a full analysis of the situation first.”