One of the country's leading advisers to high net worth individuals has said "many entrepreneurs are considering relocating outside of Ireland" because of rising taxes and levies.

There are already more than 5,800 individuals registered as non-resident and 440 of them are regarded as extremely wealthy. The number of tax exiles rose by 13% in 2007 alone and any increase in their number would have significant implications for the country's tax base.

According to the Irish Taxation Institute, the top 12% of income earners pay almost two-thirds of all income tax collected.

The tax advisers Warren & Partners has told clients that "with some careful planning, individuals can remain in Ireland but merely use different entities to conduct their activities".

It said that "with the sudden and substantial increase in personal tax rates, owner managers need to consider restructuring their affairs to transfer activities and assets to companies" to reduce their tax liabilities and reduce the amount of personal tax levies they are paying.

Clients have been advised to consider incorporating part of an existing business, to use businesses to acquire assets that are personally held, to use foreign companies to acquire foreign property assets, to use property management companies controlled by them if they own portfolios of properties and use tax exemptions for dividends.

The Sunday Tribune revealed earlier this year that the Revenue Commissioners had audited just 0.15% of tax exiles to see if they are complying with rules on non-resident status. Those claiming that status are not allowed spend more than 183 days in the country in a calendar year, but the government has tightened up on the so-called 'Cinderella rule' which had allowed non-residents to travel in and out of Ireland on the one day, without this counting towards the 183-day limit.