The former Taoiseach, Mr Charles Haughey, has made no admission to the Revenue that he received taxable gifts, the tribunal has been told.
Mr Padraig O Donghaile, officer in charge of the taxes investigation branch, including the prosecution unit, said Mr Haughey had said he had been given legal advice to answer questions from the Moriarty tribunal before replying to the Revenue.
Mr O Donghaile said it had not yet been possible to identify the "taxable source" of all payments made to Mr Haughey. A complex series of offshore transactions was involved, and Mr Haughey was not obliged to keep any records of gifts or personal expenditure, so significant difficulties existed. The Revenue had used all its powers to investigate.
The former Fine Gael minister, Mr Michael Lowry, is facing possible criminal charges under the 1993 tax amnesty legislation, the tribunal was told.
Mr Liam Liston, inspector of taxes, Revenue investigation branch, said that on December 2nd 1996 the Revenue received a letter from Oliver Freaney & Co stating that there might be "certain errors or omissions" in relation to returns submitted by Mr Lowry and his company, Garuda Ltd.
The taxes concerned were income tax, capital gains tax, residential property tax and capital acquisitions tax, in relation to Mr Lowry, and corporation tax, PAYE and VAT for Garuda.
Mr Liston said in January 1997 Mr Lowry produced a certificate showing he was covered by the 1993 amnesty. On a prima-facie basis, this prevented examination of his affairs for the tax year 1991-1992 and before that.
In April 1997 a submission was received from Ernst & Young for Mr Lowry and Garuda. While it held the submission detailed undeclared income of about £500,000, the Revenue held it pointed to undeclared income of £618,000.
"But that doesn't necessarily mean that that's the end of it, because I have reason to believe that there should be additional amounts other than that," Mr Liston said. Mr Lowry has paid £327,000 based on the submission.
An application to the Appeals Commissioners for the right to investigate Mr Lowry's tax affairs for the years before the amnesty was granted on November 3rd 1997 after a number of hearings, including some adjournments, and after Mr Lowry indicated his consent.
The following day Mr Liston wrote to Mr Lowry's then tax agents, Ernst & Young.
"I am writing to inform you I have formed the opinion offences [including offences under the tax amnesty] have been committed by your client, Mr Michael Lowry. I now wish to arrange a meeting with Mr Lowry with a view to formally cautioning him."
Mr Lowry was subsequently cautioned during a meeting in Mr Liston's office.
The tribunal adjourned until a date to be announced.
