The Fianna Fáil TD for Limerick West, Mr Michael Collins, faces the prospect of criminal prosecution after the Standards in Public Office Commission referred his tax-clearance certificate to the Director of Public Prosecutions, Mr James Hamilton.
He is also facing the possibility of suspension from the Dáil after the commission referred his case to the Committee oMembers' Interests of Dáil Éireann, which has powers akin to a tribunal when investigating alleged breaches of the Ethics Acts.
The commission referred Mr Collins's tax-clearance records to the DPP and said it was not empowered to investigate whether he had breached the Ethics Acts.
While the commission has gone to the DPP with other cases involving politicians, the development marks the first time it has made a referral in respect of a sitting TD.
Mr Collins resigned the Fianna Fáil whip in September when it emerged he had made a €130,000 tax settlement with the Revenue over a bogus non-resident account.
The Limerick West TD remains a member of the party. He has also voted with the Government since his resignation.
The commission said it was writing to the Minister for Finance, Mr McCreevy, to highlight "limitations" in the Ethics Acts which had arisen as a result of its consideration of the Collins case.
It noted that it cannot investigate whether a TD, who is not an office-holder, has breached the Acts. It has power to investigate only cases involving public servants and Oireachtas members who are office-holders.
In May 2000, the former Fianna Fáil TD for Kerry North, Mr Denis Foley, was suspended from the Dáil for 14 days after an investigation by the committee into his Ansbacher account.
The committee has the power to conduct hearings in public or private, to compel witnesses and to seek discovery of documents.
Chaired by the Fianna Fáil TD, Mr Noel Davern, the Government has a majority on the committee. Its other members are: Mr Eoin Ryan TD of Fianna Fáil; Mr Noel Grealish of the PDs; Mr Pádraic McCormack of Fine Gael; and the Green Party leader, Mr Trevor Sargent.
Mr Davern would say only that due process would be followed in the committee's consideration of the case.
The committee will meet next Wednesday. It is expected to take legal advice on whether it can proceed with an examination of the case while Mr Hamilton's office is discussing it.
The affair has already put pressure on the Taoiseach, Mr Ahern, because he knew for some months about Mr Collins's dealings with the Revenue before they became known publicly.
A spokesman for Fine Gael said yesterday: "What has happened underlines the seriousness of what happened back in September and puts into sharp focus the Taoiseach's weak leadership on this matter."
When contacted yesterday in Leinster House, Mr Collins said it would be inappropriate to comment. In previous statements, he said he had "complied at all times with the legal requirements" laid down by the commission.
The TD provided a tax-clearance certificate to the Standards in Public Office Commission in June 2002 and swore a statutory declaration to the effect that his tax affairs were in order. This certificate has now been referred to Mr Hamilton's office.
Fianna Fáil's internal inquiry was suspended last month after the party's ethics committee concluded the statutory process should take precedence.
The party's spokeswoman said it would be inappropriate to comment. "We suspended the inquiry while the case was being investigated in the statutory authorities. That's ongoing and the investigation remains suspended."
Like all other Fianna Fáil candidates, Mr Collins signed a party pledge before last year's general election.
It said: "I have complied or am in the process of complying in good faith with all my tax obligations."
Mr Collins also promised "to abide by the highest standards of ethical behaviour as a candidate" and comply with Fianna Fáil's Guidelines on Standards in Public Life.
