Calls are being made for an investigation into the tax affairs of Independent TD Mick Wallace after he admitted his company under declared VAT on the sale of apartments.

Deputy Wallace's company MJ Wallace Ltd reached a €2.1m settlement with the Revenue Commissioners, which he says it will be unable to pay.

The Chairman of the Fine Gael Parliamentary Party has said he believes there should be consequences for Independent TD Mick Wallace, following his admission that he under declared VAT on apartment sales.

Charlie Flanagan called for the Standards in Public Office Commission to investigate the case and decide whether any powers of censure should be used against the Wexford TD.

Mr Flanagan said an admission by Mr Wallace that the money is unlikely to be paid to Revenue, because the company is insolvent, is not tolerable.

"We have the Standards in Public Office Commission, which is the ethical watchdog that was set up as an oversight body, and I believe that there are grounds there for this matter to be subject to an investigation," Mr Flanagan said.

Speaking on RTÉ News, Deputy Wallace said he declared he owed the Revenue €1.4m and that he owed the banks €40m before he stood for election to the Dáil last year.

He acknowledged that it was unlikely the settlement would ever be paid because his company was insolvent.

Earlier, on RTÉ's Morning Ireland, the Wexford TD said he is far from proud about what he did.

Mr Wallace admitted that he had knowingly made an under declaration to Revenue, but said he had done so in order to save his company and had expected to be able to pay the money due at a later date.

Deputy Wallace said "I acknowledged that what I did was wrong, but I did it in good faith."

Mick Wallace continued, "I really did believe that I would have been able to pay the VAT at a later stage and I was trying to save the company."

He said, “I had 60 people working for me as well; I was trying to save their jobs. I was dealing with four banks that were putting incredible pressure on me."

Deputy Wallace said, “It was a difficult decision to make at the time.

Mr Wallace added: ''Even though it was illegal, I thought it was the right thing to do.''

On RTÉ's Prime Time programme, Labour TD and Chairman of the Oireachtas Joint Committee on Finance Alex White has said that Deputy Wallace should reflect on his position as a politician.

Elsewhere, the Independent Group in the Dáil has said "that they do not condone his behaviour."

The Independent group has said that "he has done wrong and should be equally accountable as any other TD or ordinary citizen."