But presumably when you rent it out and fill out the relevant forms for the Revenue, and the PRTB in order to claim relevant reliefs, then a simple cross check will reveal that your rental property and your principal private residence are one and the same. While Revenue may not be checking this at the moment, it seems that it would be easy for them to do. All it would take is one scandal or a simple investigation by the opposition to force them into action.
And as we have seen with the Bogus, Offshore and Life assurance Policy enquiries, its not a matter of if your caught but rather when! Is it worth the risk of interest, penalties and the threat of publication as a tax dodger?