Charles Haughey has agreed to pay €5m to the Reveneue Commissioners to settle outstanding tax liabilities.
In a statement the Revenue Commissioners said the sum comprised gift tax of €2.47m, and interest and penalties of €2.53m.
The Commissioners said the settlement followed long and complex negotiations.
Under an interim settlement three years ago, Mr Haughey had already paid £1,009,435 (€1,281,718), which included interest of £501,772 (€637,119).
