AIB executivesThe Revenue Commissioners has confirmed that it has contacted the tax authorities in the British Virgin Islands as part of its investigation into an offshore investment scheme used by former AIB senior executives.

Revenue chairman, Mr Frank Daly, said the State's tax collection agency has already made contact with the tax authorities in this jurisdiction where one of the vehicles used, a company called Faldor, was registered. It was found to have breached tax law.

The beneficiaries of Faldor were former AIB chief executive, Mr Gerry Scanlan; the former chairman of Irish Life & Permanent, Mr Roy Douglas, who had worked at AIB; the bank's former deputy chief executive, the late Mr Patrick Dowling; its former director of corporate strategy, Mr Diarmuid Moore, and the former head of its US treasury operations, Mr David Cronin.

Five other AIB executives, including another former chief executive, Mr Tom Mulcahy, were found to have had "tax issues" following on from their investment in separate schemes. Three of the other executives still work at the Republic's biggest bank and are facing disciplinary action.

Mr Daly said the Revenue was initially adopting a general approach in terms of its investigation into these practices at AIB which went back as far as 1998. "It will be an expeditious investigation and will not be at the expense of being a thorough and vigorous investigation."

When asked if the Revenue would look beyond 1989 Mr Daly said it would initially concentrate on the arrangements made public in recent weeks and would follow through on them. "I don't want to pre-empt it," he added.

One of the Faldor beneficiaries, Mr Roy Douglas, said he was "invited" to join the scheme when he joined AIB's senior management ranks. He said he had regarded this opportunity as a "benefit" of his senior position at the bank and understood that it had been in existence for some time. AIB said it had operated between 1989 and 1996.

Some of the former AIB senior executives have stated that they have settled their tax liabilities in relation to these investments. Mr Scanlan said the money invested in Faldor belong to his wife and that they had been "indirect and unknowing" beneficiaries of the company that was managed by AIB Investment Managers.