A former senior revenue official who became AIB's head of taxation could not explain why he was recruited by the bank in 1989, he told the DIRT inquiry.
Dr Donal de Buitleir had been referred to by the former AIB chairman as the man "who could clarify all the remaining mysteries" for the committee. Mr Rabbitte reminded him: "Mr Sutherland reposed more confidence in you than the entire Bar Library." Dr de Buitleir could not say why he had been head-hunted and believed it had little to do "with particular knowledge I had".
He was aware that 1989 was the year that AIB was "in the throes of cleaning up the situation in the UK", as Mr Rabbitte put it, in respect of tax liabilities, but his recruitment had nothing to do with that.
Mr Rabbitte wondered whether AIB's difficulties with the British Inland Revenue might not have "set off obvious alarms" on this side of the Irish Sea.
Dr de Buitleir thought it unreasonable to make the assumption "that any experience we might have had in the UK was transferable to Ireland".
He had had a note from the financial director, Mr John Keogh, in July 1990, Mr Rabbitte reminded him, indicating the situation in the Republic should be examined, because of the bank's experience in Britain.
Although he was head of group taxation at the time, he had not asked anyone about this, Dr de Buitleir confirmed.
Pressed by Mr Rabbitte as to why there should be such a difference between the bank's experience in Britain and Ireland, Dr de Butleir replied: "The business in the UK may have been concentrated in certain aspects of the Irish community who might have had a particular attitude to paying tax that you couldn't generalise to Ireland."
"And that was something they picked up in the United Kingdom, in immigration?" Mr Rabbitte asked.
The former head of taxation at AIB declined to speculate.
Earlier, another former revenue official, Mr Jimmy O'Mahony, the bank's former group taxation manager, insisted the agreement AIB believed it had with the Revenue Commissioners could not be considered an amnesty as that would have required legislation.
At a meeting with a senior tax inspector, Mr Tony Mac Carthaigh, on February 13th, 1991, he explained, "we put up our hands and said we had a problem". His point was that a firm agreement was in place. Mr Mac Carthaigh had the full law behind him at that stage if he wished to implement it. "He could have thrown the book at us, put in an estimated assessment which he chose not to do. Is that not evidence enough that he knew we had an ongoing arrangement?" Mr O'Mahony asked.
Mr Mac Carthaigh was an unlikely Santa Claus, said Mr Rabbitte.
"He was a tough negotiator, but honourable," responded Mr O'Mahony.
"He wasn't very tough if he gave you an amnesty for a figure of tens of millions that we have yet to quantify," Mr Rabbitte replied.
There were other people involved in this initiative, Mr O'Mahony rejoined. Mr Mac Carthaigh had intimated that he was acting with the full approval of the board of the Revenue Commissioners.
And had it gone to the board of AIB?
Yes, it had gone to the audit committee and thence to the board.
"What went to the audit committee and the board?" the chairman, Mr Mitchell, asked. "My distinct impression was they knew very little."
It was brought to the board's attention following (the group internal auditor) Mr Tony Spollen's presentation, Mr O'Mahony confirmed. The board had become aware of it at that stage.