The Revenue Commissioners prosecution unit is conducting a number of investigations into people and companies associated with Dunnes Stores.

However, it is understood no case is being contemplated against the Dunnes Settlement Trust, the owner of the majority of the shares in the Dunnes Holding Company.

Evidence heard in tribunals and court cases over recent years have revealed significant past tax evasion and the facilitation of tax evasion by the group. Evidence has also been heard of companies being established outside the group as a method of getting funds out of the trust's control.

Mr Ben Dunne has indicated in evidence that funds lodged offshore were placed into offshore accounts for business associates from his time in Dunnes Stores. He also issued cheques to executives for expenses that were never incurred. The persons who received these monies were not named but some, at least, are known to the Revenue.

A report by what was then Price Waterhouse, commissioned by the Dunnes group following Mr Dunne's departure, details numerous unorthodox payments made during his time as de facto chief executive. The Revenue has a copy of the report.

Mr Dunne has told the Moriarty tribunal that before he set up a company in the Far East, which was used to covertly get funds away from the control of the trust, he spoke about the matter with his father. Mr Ben Dunne senior died in April 1983.

He also said the funds that accumulated in the Far East would be transferred to "business associates" and that the sums involved could be up to £100,000 (P127,000). He did not name these associates. On occasions, bank accounts would be opened abroad to receive this money for these people.

Mr Dunne also told the Moriarty tribunal of a system he inherited from his father involving cheques made out to "bearer". These cheques were made out for amounts between £3,000 and £7,000.

"I would keep some for my own personal self and I would use others for executives in the business," Mr Dunne said.

The payments were the equivalent of cash bonuses. "Even though it was company money, they were like my own pound notes."

The money was treated as expenses in the Dunnes group accounts.

Mr Dunne established a procurement agent, Wytrex, in Hong Kong that was not part of the Dunnes group but the finances of which were under his control.

The group would pay approximately 5 per cent more than what was due for the textiles and other goods sourced by the company and these monies would then constitute its "profits".

Every 12 to 18 months, Mr Dunne would travel to the Far East and return with bank drafts for between £100,000 and £200,000.

Other money from the operation would be transferred to a trust company in Switzerland called Equifex, or to a company in the Isle of Man called Tutbury Ltd.

Money from Equifex and Tutbury went to Mr Charles Haughey. Mr Michael Lowry, whose company, Garuda Ltd, was involved in the provision of refrigeration services to the Dunnes group, also received money from Tutbury.

The Revenue is investigating payments that were made to a Kildare construction company, Faxhill Homes Ltd, by Dunnes Stores for work carried out on the homes of Mr Dunne and Mr Lowry. The invoices issued in relation to this work have been described as being part of a tax evasion scheme.

The company also carried out work connected with the homes of Mr Frank Dunne, a Dunnes director, and Mr and Mrs Charles O'Brien. Mrs O'Brien is the daughter of Mrs Margaret Heffernan, another Dunnes director. There is no suggestion that there was anything untoward about how the payments were processed in relation to the work on Mr Frank Dunne and Mr and Mrs O'Brien's homes.

Mr Ben Dunne was removed from his executive positions within the Dunnes group in 1993 and the Moriarty tribunal has heard that the group subsequently settled with the Revenue in relation to transactions that occurred during his time in charge of the group.

The Tanaiste and Minister for Enterprise, Trade and Employment, Ms Harney, is currently appealing to the Supreme Court the decision of the High Court last year to quash the appointment by her of an authorised officer to two companies in the Dunnes Stores group. The issue has already been the subject of three High Court hearings and one Supreme Court hearing.