An expert witness for Ms Beverley Cooper-Flynn had no authority to comment on the CMI investment scheme being sold by the Fianna Fáil TD in the early 1990s, it was claimed in the High Court today.
Counsel for RTÉ Mr Michael O'Higgins said tax expert Mr Aidan McLaughlin had no authority to comment as it actually existed rather than in theory.
Mr McLaughlin agreed with the assertion, saying he had no knowledge of individual specific cases. In previous evidence Mr McLaughlin said his expertise was not in the area of investments.
Earlier Mr Justice Frederick Morris told the court, as he understood Mr McLaughlin's evidence, the CMI scheme being sold by Ms Cooper-Flynn was not the best such scheme for a person to use in evading tax.
Under cross-examination by counsel for RTÉ Mr John Trainor SC, Mr McLaughlin said the product did not provide secrecy although it did provide confidentiality and security.
Tax evaders are obsessed with secrecy, said Mr McLaughlin.
Mr McLaughin told the court tax evasion was illegal, tax avoidance was legal but was targeted by the Revenue and tax mitigation was perfectly acceptable.
He added he would not disagree with the common perception that placing investments in the Isle of Man offers a greater degree of secrecy. He also said that it was his opinion that information on money held in foreign accounts was more accessible to the Revenue than information on money held in Irish accounts.
However, the money itself was not accessible as it was outside the State.
When questioned by Mr Garrett Cooney SC for Ms Cooper-Flynn, Mr McLaughlin agreed that "confidential" was a standard phrase used in financial literature in the early 1990s.
This morning, Mr McLaughlin also answered questions about his involvement in a company called ITALS. Mr McLaughlin agreed he was involved with the company and named its other partners as Mr Eddie Hobbs and Mr Tony Taylor.
Ms Cooper-Flynn from Westport Road, Castlebar in Co Mayo is suing RTÉ journalist Mr Charlie Bird and retired farmer Mr James Howard of Wheaton Hall, Drogheda in Co Louth.
She claims she was libelled in broadcasts on RTÉ between June 19th 1998 and July 1st 1998 and words used on the programme claimed she had instigated a scheme the object of which was the evasion of the lawful payment of tax.
The case continues.
