Tax implications: The Revenue Commissioners are likely to inquire into the money given to Taoiseach Bertie Ahern in 1993 and 1994, sources said yesterday.
However, tax experts believe the Revenue will agree that Mr Ahern does not have a tax liability arising from the money given to him.
"There is a presumption of innocence in tax matters, unless there is a track record," said one expert, who did not wish to be named.
"The Revenue would look at the overall facts of the case. If he and the 12 people who gave money say it was a loan, then it is up to the Revenue or the Appeal Commissioners to decide if that is reasonable. It would be very difficult for the Revenue to say it was otherwise."
In cases of loans, the only possible issue that might arise would be the benefit accrued from the non-payment of interest. Mr Ahern said yesterday the interest rate that applied to the payments was 3 per cent per annum. This would not create any annual gift tax liability.
Mr Ahern has said he received approximately €50,000 and that he intends repaying the sum and the interest. At 3 per cent per annum, the total amount owed would now be well in excess of €70,000.
The expert said that the relatively small amount involved would not normally prompt a Revenue inquiry but that given the person involved, it may feel it has to look into it.
Another tax expert was strongly of the view that Mr Ahern had no tax liability. "If it is a loan then there is no tax and from what I've read it would seem to be a loan," he said. "My personal opinion is that the man has no tax liability whatsoever."
He said the period of the loan was longer than usual but it was still a loan. A long-term loan that people might feel would never be repaid, remained a loan so long as the party who gave the money had the right to seek its return, he said.
