The meter on one Government department’s substantial taxi bill has shot up to €26,660 after a settlement with the Revenue Commissioners.

This has been revealed by Minister for Foreign Affairs Charlie Flanagan, who disclosed that the taxi bill settlement was part of a wider €33,570 one reached with Revenue by his department only last month after an audit.

The department has disclosed the settlement as it confirmed it has reimbursed €661,746 in taxi fares to staff over the past four years.

In a Dáil response to Fianna Fáil's Barry Cowen on the issue, Mr Flanagan wrote: "In September 2014 the Revenue Commissioners commenced an audit of my Department. Prior to this audit my Department reviewed findings of similar audits of other Government Departments previously undertaken by the Revenue Commissioners.

“On that basis my Department undertook a review of certain expenditure for the period to be audited. Based on this review my Department made a voluntary declaration to the Revenue Commissioners in relation to certain taxi costs where it was considered that there was an additional tax liability.

According to Mr Flanagan, the settlement of €26,660 relates to taxi journeys between officers’ homes and headquarters.

In accordance with departmental policy, officers who come in before 7am and leave after 9pm may use a taxi.

Under tax legislation travel between home and headquarters gives rise to a benefit in kind tax liability.