Charles Haughey's relationship with the Revenue Commissioners was back under the spotlight at the Moriarty Tribunal today. Its lawyers said that it appeared a trade-off had taken place. The Revenue had given Mr Haughey the "comfort" of believing he would not be subject to a criminal prosecution and, in return, he made what was described as a substantial settlement of his tax liabilities. It is understood that the former Taoiseach has now concluded giving evidence in private session to the Tribunal.
For the past number of months, Charles Haughey has been meeting the Tribunal in private for one hour, four mornings a week. It is believed that yesterday was his last such session, but it may be some time before his evidence, or portions of it, is read into the public record. Today, his state of mind three years ago was speculated upon. The Revenue Commissioners agreed that the prospect of a criminal prosecution for failure to file gift tax returns would have been exercising his mind hugely. In 1998 that was a very real possibility.
The Revenue was calculating what Mr Haughey owed them as a result of the McCracken Tribunal's findings. But it was also investigating whether he might have criminal charges to answer. By 1998 they had estimated that he owed them more than £1m and they made it clear that they were not ruling out criminal proceedings. But Charles Haughey appealed, successfully, and his tax bill was reduced to nil.
This was a huge blow to the Revenue. Its officials agreed today that it marked a qualitative change in their relationship. The Revenue did get its money. Last year Mr Haughey agreed a settlement £1m. Just before he agreed the revenue told him they did not have the evidence to recommend criminal charges to the DPP.
