Ms Beverley Cooper Flynn played a central role in advising her parents, Padraig and Dorothy Flynn, on the investment of £25,000 in offshore funds in 1989, which was later transferred to a non-resident bank account.
It is clear from her statement that Ms Cooper Flynn outlined the various investment options available to her parents after her father sought her advice. She told the Dáil that he did not discuss the source of those funds, and she did not know where the money had come from.
From Mr Flynn's tax point of view, the source of the funds is one crucial element and whether there was tax owing on the monies he received and subsequently invested.
Subsequently, when the money was invested, Mr Flynn, a former EU commissioner, may not have been resident in Ireland for tax purposes, as anyone who stays out of the country for more than 140 days a year can apply to be exempt. This is a key issue in whether capital gains tax on investment gains would have been due to the Irish Revenue.
Ms Cooper Flynn recommended that the money be invested in three offshore investment funds, the MIM Britannia European Fund, the MIM Britannia Nippon Warrant Fund and Fleming's International Eastern Opportunity Fund, which were sold through NIB.
She has said that all these funds were and are legal as MIM and Fleming's were both licensed and authorised to sell these products in Ireland. These funds were separate from the unauthorised CMI investment scheme that the bank also offered to investors and which has been the subject of a High Court investigation.
Mr Flynn and his wife decided to put £15,000 into the MIM Britannia European Fund, £5,000 into the Nippon Warrant Fund and £5,000 into Fleming's International Eastern Opportunity Fund.
Ms Cooper Flynn, who was an investment adviser at the bank, arranged for the £25,000 to be transferred into those three funds.
She said that she attached a form which was to be completed and sent to the Central Bank of Ireland as part of its exchange control policy used to monitor monies flowing in and out of the country. It would have been up to Mr Flynn and his wife to complete this, and she said this was done.
Investments in offshore funds would have been confidential as the Revenue Commissioners would not have had the power to seek those details from a foreign institution.
Ms Cooper Flynn said she also notified her father of his personal tax obligations. If he was resident in Ireland he would have been responsible for declaring any investment gains and for paying capital gains tax, if that arose, to the Revenue Commissioners.
The investments were placed in the names of Padraig and Dorothy Flynn and in her name. She said that she didn't have any beneficial interest in those funds and that her name had only been added to allow her to deal with the investments as they were cashed.
It would have been unusual for an investment adviser's name to appear on a client's investment but would have eased the administration for her parents.
As the investments were cashed in the cheques were issued in her name, and the monies were lodged in a non-resident bank account opened at NIB. The account was held in her parents' name and their address in Brussels.
From her statement the issues regarding any potential tax liabilities arising from these investments appear to be a matter for her parents.