Independent TD Mick Wallace has said he is making arrangements to use half his Dáil salary to pay back underpaid VAT to the Revenue Commissioners.

In a statement to the Dáil, Mr Wallace apologised to the people of Wexford and Ireland and to the Dáil for what he described as an error of judgement in underpaying his company's tax liabilities.

Last week, Deputy Wallace disclosed that his company made a false VAT declaration and that it would be unlikely to be able to pay a €2m tax settlement.

Deputy Wallace gave a brief outline of the events that led him to make a false declaration of VAT owed by his company, MJ Wallace Ltd.

He said it had never been his intention that the tax would not ultimately be paid but events had overtaken him.

He told the Dáil that while there was a clear distinction between the finances of a company and that of an individual, many people did not see it that way.

Accordingly, he would personally make repayments of the tax bill and would give over half of his €90,000 Dáil salary towards the €2m outstanding.

Mr Wallace became emotional towards the end of his statement.

As he sat down there was a smattering of applause.