The CMI personal portfolio product, which was among investment products sold by Ms Beverley Cooper-Flynn while she worked for National Irish Bank, provided confidentiality rather than secrecy, a tax expert told the High Court yesterday.
The Fianna Fail deputy's action alleging that she was libelled in a series of RTE programmes is now in its third week, but evidence for Ms Cooper-Flynn will conclude "very shortly", Mr Garrett Cooney SC, for the plaintiff, told Mr Justice Morris and the jury at the conclusion of yesterday's hearing.
Yesterday was the ninth day of the action. There is no indication of how long the defence case, which has yet to open, might last.
Ms Cooper-Flynn (34) is suing RTE, Mr Charlie Bird and a retired Co Meath farmer, Mr James Howard, over broadcasts on RTE in June and July 1998. She claims that words used in the programmes meant that she had instigated a scheme the object of which was the evasion of the lawful payment of tax. The defendants deny libel.
Continuing his cross-examination of Mr Aidan McLaughlin, a tax consultant, Mr John Trainor SC, for RTE, asked if the security offered by the holder of a tax-evader's investment was of critical importance to the tax-evader.
Mr McLaughlin said it would be a factor of primary concern to the tax-evader that their money was not discovered by the Revenue authorities, but he believed that the security offered provided by a company was important to any investor.
Mr McLaughlin said he thought "secrecy" was more important to the tax-evader than "confidentiality". When the Criminal Justice Bill of 1994 outlawed money-laundering it had been assumed from all the information available at the time that money-laundering did not embrace tax evasion. The CMI personal portfolio did not provide secrecy but confidentiality.
Cross-examined by Mr Paul O'Higgins SC, counsel for Mr Howard, Mr McLaughlin said an Irish Revenue order would have no impact against any financial institution in the Isle of Man.
After the 1993 Finance Act, however, reporting obligations were imposed on intermediaries in this State such as banks and other financial institutions.
The witness said that the CMI personal portfolio, as sold by NIB, was intended to be a lifelong product. The 1993 tax amnesty was a significant event for those involved in the tax industry and would be well known to tax advisers and other individuals, including those designing products for financial institutions.
The 1993 Finance Act made obligatory the disclosure of policies such as CMI. It then became the duty of every intermediary to give information to the Revenue on such policies, including the name and address of the depositor or investor, the amount invested, the name of the policy and where it was held.
The hearing continues today.