Fine Gael has made a payment of over £100,000 to Revenue Commissioners, which covered cash payments to staff over a nine year period, and included PAYE/PRSI arrears of almost £60,000.
In a statement released tonight the party said its taxation affairs are now fully up to date and no arrears are due to the Revenue Commissioners.
After his appointment as party leader in February, Mr Michael Noonan ended all corporate funding to Fine Gael and began a full review of the party's financial affairs.The review highlighted PAYE/PRSI arrears totalling £57,731 over nine tax years.
The party said that following voluntary disclosure interest in the amount of £50,492 and negotiated penalties at 5 per cent were agreed with the Revenue. £100,000 was paid on account on April 1st, 1999 with the balance being paid in June of the same year.
The Revenue also conducted an inquiry into so-called 'pick-me-up' (PMU) arrangements and the payment of small overtime and bonus payments to staff.
PMU arrangements involve goods and services being supplied to political parties but invoiced to individuals and companies that are party supporters.
Fine Gael said the Revenue Commissioners contacted it in 1998 about these PMU arrangements, and following inquiries the party confirmed that payments totalling £90,000 had been made in respect of goods and services on behalf of the party in 1989, 1994 and 1995. No further evidence of PMU payments have been uncovered since 1995.
The party said tonight it understood that the Revenue Commissioners have reached settlement with any companies or individuals identified as having supported it in this way.