According to Mr Hobbs, tax avoidance schemes are used by developers to dodge over to €400 million in stamp duty per year.
Mr Hobbs referred to a revenue report, submitted to the Department of Finance in January 2007, which stated that stamp duty avoidance could have cost the exchequer as much as €435m in one 12-month period.
Enterprise Minister Micheál Martin, who is expected to become the next minister for finance, said a Goodbody review "indicated to the Department of Finance that it should not move at this time to deal with that issue".
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The loophole - which is used in 40% of all land deals - enables developers to avoid paying stamp duty through a series of financial manoeuvres when purchasing.
The technicality, known as the "s.110" arrangement, is also used by local authorities. According to a Goodbody Consultants report, the arrangements are used by as many as 16 public private partnerships.
Mr Hobbs hit out at the policy saying the raising of the top rate to 9% was the essence of the problem.
He said the policy was, "triggering a wave of avoidance measures by developers and state agencies".
"Minister Cowen must take responsibility... That the profits of developers have so clearly been given priority over ordinary taxpayers who have no option but to borrow up to 9% stamp duty will come as no surprise," he said.
Mr Hobbs added: "The incoming taoiseach, by failing to act, has embedded cross-subsidisation of the strongest by the weakest, will disappoint many hoping for a principled new leader".
However, a government decision to close the loophole was reversed by the outgoing Finance Minister Brian Cowen who said that it could affect the property market negatively.
(DW/JM)
