A County Cavan farmer and businessman has alleged that Mayo TD Ms Beverley Cooper-Flynn knew that money he was investing in a CMI Investment Policy in 1996 came from a bogus non-resident account.
This afternoon the High Court heard evidence from Mr Patrick Duff, a farmer and businessman from Bailieboro, Co Cavan, who said Ms Cooper-Flynn advised him to invest undeclared money from a "bogus" account in CMI so as to avoid paying tax.
Mr Duff said that during a number of meetings in 1993, Ms Cooper-Flynn told Mr Duff not to avail of the tax amnesty available at the time but to invest his undeclared money in CMI.
Mr Duff claimed Ms Cooper-Flynn said: "Why lose 15 per cent of your hard-earned money when you can put it into a fund that I'll manage for you."
Mr Duff claimed Ms Cooper-Flynn told him the money would be put in a "numbered" account offshore in the Isle of Man, keeping his identity secret and that after his death the money would pass directly to his beneficiaries rather than be returned into his estate, thereby eliminating inheritance tax.
Mr Duff said that in August 1996 he invested £168,000 from a "bogus" NIB account, registered under the name of "John Duff" with a fictional address in London, and a further £140,000 from an AIB account that December.
He said Ms Cooper-Flynn told him NIB would give him £2,600 to "top up" his investment as a goodwill gesture.
Asked whether Ms Cooper-Flynn was aware the money was undeclared, Mr Duff said: "She knew exactly where the funds were coming from."
Earlier today, a former NIB employee told the Cooper-Flynn libel case she wrote a letter to retired farmer Mr James Howard in 1993 advising him he should avoid paying inheritance tax. His estate was said to be worth over £1 million.
In the letter read to the court today Ms Patricia Roche told Mr Howard the inheritance tax liabilities his beneficiaries would face in the event of his death would cost an estimated £327,450 - 29 per cent of Mr Howard's overall assets.
The court heard Ms Roche told Mr Howard it would be "grossly unjust if the Revenue were to be the ultimate beneficiaries of your estate" and said there was a "very simple and uncomplicated way of dealing with this".
Ms Cooper-Flynn denies she ever met Mr Howard or arranged a CMI policy for him which facilitated tax evasion. She has previously told the court in her evidence Ms Roche sold Mr Howard the policy.
This morning Ms Deirdre Condren, another former NIB employee, told the court a report should have been filled out by Ms Cooper-Flynn if she had met Mr Howard to discuss a policy. Ms Condren said she had never seen such a report.
Fianna Fáil TD Ms Cooper-Flynn from Westport Road, Castlebar in Co Mayo is suing RTÉ journalist Mr Charlie Bird and retired farmer Mr James Howard of Wheaton Hall, Drogheda in Co Louth.
She claims she was libelled in broadcasts on RTÉ between June 19th 1998 and July 1st 1998 and words used on the programme claimed she had instigated a scheme the object of which was the evasion of the lawful payment of tax.
The case continues.