The Taoiseach last night declined to comment on what the Labour Party described as astounding allegations of tax evasion by former minister Mr Pádraig Flynn, allegedly assisted by his daughter, sitting Fianna Fáil deputy Ms Beverley Cooper Flynn.
Labour's environment spokesman Mr Eamonn Gilmore last night demanded the Taoiseach respond to allegations he described as "among the most serious ever to have been made regarding any political figure in this country".
His demand followed a TV3 news report last night that the controversial £50,000 cheque given by developer Mr Tom Gilmartin to Mr Flynn in 1989 was lodged into a non-resident bank account in his and his wife's names, and half of this was later invested offshore.
The Flynns signed a declaration giving a false London address in order to avoid DIRT tax at a time when both were tax resident in Ireland, the report said.
The £25,000 was moved later in 1989, according to the report, into three offshore funds on the advice of the Flynn's daughter, Ms Beverley Cooper Flynn.
These funds were in the names of Mr Flynn, Mrs Dorothy Flynn and Ms Beverley Cooper Flynn, the report said. Ms Cooper Flynn advised her father in a letter that the investments would not be disclosed to the tax authorities.
According to the report, Ms Cooper Flynn maintains she had no beneficial interest in the money. She said last night the advice she gave was "totally above board".
Mr Gilmartin has said consistently that he intended the £50,000 as a donation to the Fianna Fáil party. The Mahon tribunal is expected to begin hearing evidence on this and other allegations by Mr Gilmartin early this year.
In late 1998, Mr Gilmartin's assertion that he had given £50,000 to Mr Flynn began to circulate. Mr Flynn then declared the receipt of the money to the Revenue Commissioners, saying half was a gift to him and the remainder was to cover election expenses, the report said. However, the Revenue did not accept this, insisted on treating it all as a gift, and made a gift tax demand of £21,650, which Mr Flynn paid.
Mr Gilmore last night called on the Taoiseach to make an immediate statement on what action he intends to take on these "astounding allegations". However, asked by reporters to respond last night, Mr Ahern said: "I have not heard the full story. If anyone is guilty of tax evasion, that's a very serious matter."