Lawyers for the Mahon tribunal have accused Ms Beverley Flynn TD of having "selective amnesia" about investment funds she handled on behalf of her parents.
However, the former investment consultant with National Irish Bank rejected the charge, saying she simply did not recollect the details of lodgements and withdrawals of her parents' investments.
According to Ms Patricia Dillon SC, for the tribunal, Ms Flynn invested a total of £68,000 in "round-sum figures" on behalf of her parents between 1989 and 1993 but was unable to recollect any of the details surrounding these lodgements.
Ms Flynn yesterday denied knowing anything about the source of the money given to her by her father, former EU commissioner, Mr Pádraig Flynn. Mr Flynn is due to give evidence to the tribunal today.
In evidence, she described the source of the money as "my father" but added, "beyond that I don't know".
The tribunal has already established that the £50,000 given to Mr Flynn by developer, Mr Tom Gilmartin, was lodged in a bogus non-resident account in the names of Mr Flynn and his wife, Dorothy, in 1989. Half this sum was withdrawn and given to Ms Flynn to invest in offshore investments on behalf of her parents.
Ms Flynn explained that her father asked her to prepare an investment report for a sum of £25,000, but gave no indication of where the money came from.
She placed the money in three different offshore funds in her parents' and her own name. Her name was added purely because it would help with the switching of funds; she had no beneficial interest in the money.
Ms Dillon pointed out that Ms Flynn, in her report, said the investment would be "totally confidential" with no disclosure to any tax authority.
Ms Flynn explained this was a standard paragraph prepared by the bank for all customers.
Ms Flynn agreed that the bank was offering confidentiality to customers.
However, she objected when Ms Dillon said NIB was guaranteeing secrecy, because this implied that "something is not correct". The report made clear that there was an obligation on investors to make their own tax returns.
She agreed it would have been "crystal clear" to her father that he would have a liability to tax if the investments made a profit.
Ms Flynn said she could not recollect how the first lodgement of £25,000 arrived in NIB in November 1989. She knew she was given £25,000 but she could not recall how she got the money.
A further £10,000 was invested in her parents' fund in July 1990, and in December 1993 £33,000 was invested and used to buy dollars with a bank in New York.
Ms Flynn said she could not recollect whether she had received cash or a cheque from her father in relation to the £10,000 investment. She had no recollection at all of the £33,000 investment.
Ms Dillon said two of the investments were encashed and the money put in NIB Monaghan. Ms Flynn was "instrumental" in opening this non-resident account for her parents in 1993, when they were living in Brussels.
Counsel asked the witness if she suffered from "amnesia" in relation to cash from her parents.
Ms Flynn said this was a misrepresentation. She remembered her father's investment of £25,000 and other matters.
However, Ms Dillon said the only assistance that the witness could offer the tribunal was to confirm something where a document already existed to say that something had happened.
"Your amnesia is quite selective," she said.
Judge Alan Mahon said Ms Flynn did not recall any withdrawals or lodgements except where there was documentary evidence. The transactions were very "large and unusual".
Ms Flynn agreed, but said she was very clear about her father's investment and the £10,000 top-up.
Although she could not recall the details, it was "probable" that she had made the withdrawals.
Ms Dillon asked whether there was any reason why the witness should have such amnesia in relation to her parents.
"I wouldn't say that," Ms Flynn replied. In her banking career, she had dealt with hundreds and thousands of transactions, and would not remember them all.
Ms Dillon said the witness had put her name on to her parents' account so they would not be treated like ordinary clients. Yet she recollected "nothing of significance".
"I thought I recollected quite a lot," Ms Flynn said.
"I suppose it depends on where you're sitting," Ms Dillon replied.
