A charge of making incorrect tax returns in 2002 against Independent TD Michael Lowry has been dropped.
However, the Tipperary TD remains on trial at Dublin Circuit Criminal Court on a further eight charges related to tax returns and accounting of his company Garuda Ltd.
Judge Martin Nolan told the jury he would be directing it at the end of the trial to return a not guilty verdict on one charge because the prosecution had withdrawn it after an application by Mr Lowry's lawyers in the absence of the jury.
The charge which is now withdrawn had alleged that that Mr Lowry, on 21 October, 2003, knowingly or willfully made an incorrect tax return for 2002 by failing to reflect or account for £248,624 (€372,000) obtained by him from Garuda Ltd which should have been declared as income.
However, the trial had heard that while Revenue investigated the payment and assessed the tax and penalties owed at €1.1m, Mr Lowry and Garuda had appealed that assessment and were found to have owed no income tax, PAYE or PRSI for that year.
The prosecution had alleged that Mr Lowry's company received the money in commission from a refrigeration company based in Finland, in August 2002.
The jury was told that Mr Lowry arranged for this payment to be made to a third party, residing in the Isle of Man, and therefore it did not appear in the company accounts for that year, nor did he declare it as income.
It is also alleged that the accounts were then falsified in 2007 to reflect that the payment was received in 2006.
The jury heard Revenue was at a loss of €5,541 by Mr Lowry's company Garuda not paying corporation tax on the money until 2006. Revenue assessed the final figure to include penalties at €29,000. This was paid by Garuda in 2013.
Earlier, the jury heard from tax inspector Henry Oliver from the investigation unit of Revenue that he looked into the €372,000 payment in August 2013 and assessed it as an emolument, a wage or salary, earned by Mr Lowry.
He said on that basis he determined that Mr Lowry owed income tax on the figure and Garuda PAYE and PRSI on the sum. He assessed the total owed to Revenue, including penalties and fine, as being €1.1 million.
The jury heard that both Michael Lowry and Garuda Ltd successfully challenged this assessment before the appeals commission in April 2015. The assessment was reduced to nil meaning that neither Mr Lowry nor Garuda owed anything to Revenue.
Mr Lowry, 64, of Glenreigh, Holycross, Co. Tipperary, had pleaded not guilty to four charges of filing incorrect tax returns on dates between August 2002 and August 2007 in relation to a sum of £248,624 received by Garuda Ltd and one charge in relation to failing to keep a proper set of accounts on dates between 28 August 2002 and 3 August 2007.
He also pleaded not guilty on behalf of Garuda Ltd to three similar charges in relation to the company's tax affairs and one charge of failing to keep a proper set of accounts on the same dates.