A payment of €11,829 to Pádraic O'Connor was included in a list of loans repaid with interest submitted by Taoiseach Bertie Ahern to the Revenue Commissioners in October 2006, it has been established.
The Mahon tribunal has heard that Mr Ahern's close colleague, Des Richardson, was told by Mr O'Connor in and around July 2006 that he did not consider the payment to have been a loan to Mr Ahern.
At the time Mr Richardson was making inquiries in order to assist Mr Ahern in his dealings with the tribunal.
Mr O'Connor, a former managing director of NCB, has told the tribunal in evidence that he authorised a payment by NCB as a political contribution towards Mr Ahern's constituency operation, following an approach from Mr Richards in December 1993.
He has also said that he has not cashed the cheque sent to him by Mr Ahern last year. The cheque was sent as representing the repayment of a £5,000 loan with interest.
The Revenue wrote to Mr Ahern on October 6th, 2006, following Mr Ahern's interview with Bryan Dobson on RTÉ and his statements in the Dáil on his personal finances.
In the lengthy letter, the Revenue asked Mr Ahern about his statement in the Dáil that in relation to the two loans or "dig-outs" totalling £37,000 he said occurred in 1993 and 1994, that he had "checked the matter . . . with the tax authorities long ago".
The Revenue official said he could find no record of Mr Ahern having raised the tax issue.
Mr Ahern was asked to name and give the addresses of the people who had contributed to the two loans, and a schedule of the associated repayments with interest he had said had been made. He was asked a list of questions about the payments and also about a "gift" he had said he was given after a dinner in Manchester in 1994.
The official said the Revenue had no income tax return from Mr Ahern for the tax year 1994 to 1995, and enclosed a blank form.
The Taoiseach was asked about his living in St Luke's, Drumcondra, in the early 1990s, and whether he had paid rent, and details concerning his renting and then purchasing his home on Beresford Avenue.
The letter concluded by drawing Mr Ahern's attention to the benefits of making a voluntary disclosure.
Accountant Des Peelo responded on Mr Ahern's behalf. He asked that his letter be accepted as a voluntary disclosure or an intention to make a voluntary disclosure. The income tax return sent by the Revenue was enclosed, signed by Mr Ahern.
Mr Peelo said Mr Ahern had during the period concerned sought tax advice "from time to time" but did not give the name of any adviser used. He said Mr Ahern had been told the two payments received in Ireland in 1993 and 1994 did not create a tax liability "on the firm understanding that the monies were loans repayable with interest".
Mr Peelo said Mr Ahern was aware of the general gift tax position that gifts from outside the State were not normally taxable. He said Mr Ahern could not recall who had made donations at the Manchester dinner.
He said the reference by Mr Ahern in the Dáil to "the tax authorities" was intended to refer to his tax advisers.
"There was no intention by Mr Ahern to mislead or to give incomplete information in this regard," Mr Peelo said. In a response on November 10th, the Revenue official set out the conditions for a voluntary disclosure and said that as these conditions had not been met, he could not accept that a voluntary disclosure had been made. He said the deadline for a disclosure was December 16th, 2006.
He said the income tax return was not comprehensively completed and returned it, stating that for each category under which Mr Ahern had no income, this must be stated.
He noted that no voluntary disclosure had been made in relation to the Manchester payment or the two Irish payments, and asked for Mr Ahern's view as to the appropriate tax treatments.
The official sought a computation of tax, interest and penalties due and arising from Mr Ahern's "rent free" accommodation at St Luke's in the period 1992 to 1995 as well as from Mr Ahern's period as a tenant in the house he now owns.
He also sought similar computations in relation to what he referred to as "additional voluntary disclosures".
The official included a gift tax return for Mr Ahern to fill in, arising from gifts Mr Ahern said he had received from his daughters in 2005 and 2006.
A return on the matter had been due since August 11th, 2006, and was now overdue, the official stated.
Mr Peelo met with the Revenue on November 20th, 2006, and wrote again to the Revenue on December 15th. The income tax return was one of a number of matters included on a list of "outstanding items".
A spokesman for Mr Ahern said he had no comment to make other than to say that every citizen has a right to confidentiality in relation to their tax affairs.
