Former developer Tom Gilmartin has claimed businessman Owen O'Callaghan told him how Bertie Ahern awarded tax designation just before the fall of Government.
Mr Gilmartin told the Mahon Tribunal this happened after money was paid to Mr Ahern and then Taoiseach Albert Reynolds.
But counsel for Mr O'Callaghan has accused Mr Gilmartin of embellishing false allegations.
Mr Gilmartin has claimed that Mr O'Callaghan told him sometime around March 1994 that he paid £150,000 to Mr Reynolds in the bedroom of his Cork home.
Mr Gilmartin said he is quite certain that Mr O'Callaghan also told him that it was for the Golden Island development in Athlone.
He also said that Mr O'Callaghan said that Mr Ahern, the then Minister for Finance 'got his cut'.
Mr Gilmartin said today he was also told that Mr Ahern failed to act and that Mr Reynolds had to intervene.
He said he was told a meeting was arranged in Government buildings one night before the Government fell to which Mr Ahern brought files and agreed to grant tax designation to Golden Island and a number of other developments.
Counsel for Mr O'Callaghan said Mr Gilmartin had failed to mention the alleged payment to Mr Reynolds in either his sworn affidavit in 1998 or in tribunal interviews in 2001.
Meanwhile, the Tribunal has confirmed that the Taoiseach, Bertie Ahern, will appear on at Dublin Castle again on Monday at 2pm.
