Whether the Revenue Commissioners will seek to bring a criminal prosecution against the former Fine Gael minister, Mr Michael Lowry, is still a live issue, the tribunal heard.
The former minister for transport, energy and communications and former chairman of the Fine Gael parliamentary party has been cautioned that any admissions he makes could be used against him in a criminal prosecution.
Mr Jerry Healy SC, for the tribunal, said the amount of undeclared income on which Mr Lowry might be taxed was also a live issue. While the Revenue believes the figure is around £700,000, the Independent TD for Tipperary North is claiming the amount is approximately £500,000. Mr Lowry has paid £300,000 on account.
The investigation branch of the Revenue Commissioners began an inquiry into Mr Lowry's affairs in late 1996, before the start of the Buchanan inquiry, and acting on information from an "informant", Mr Healy said.
The Revenue was given details of matters documented in the Dunnes Stores Price Water house report around the time Mr Lowry's relationship with Mr Ben Dunne was the subject of revelations in the media.
Mr Lowry's company, Garuda Ltd, is also the subject of Revenue inquiries. Mr Healy said Mr Lowry's tax agents contacted the Revenue to inform it of certain "omissions or errors" in the returns of Mr Lowry and his company after there had been disclosures in the media.
Matters which are still "live" include the amount of tax which needs to be collected, whether Mr Lowry should be dealt with on the basis of having made a voluntary disclosure, and if any "criminal culpability" might exist on Mr Lowry's part.
The value of Mr Lowry's home in Holy Cross, Co Tipperary, was re-assessed for residential property tax following disclosures in the media in 1996, the tribunal heard.
In August 1992 the Revenue's district office in Thurles received an anonymous letter saying men who were drawing social welfare were renovating Mr Lowry's home.
Officials from the Revenue and the Department of Social Welfare "raided" the site and a number of individuals ran when they saw them. The men were working for a subcontractor.
In 1996 it was revealed that more than £300,000 spent on renovating and extending Mr Lowry's home was paid by Dunnes Stores. Mr Lowry's company, Garuda Ltd, provides refrigeration services to Dunnes.
Mr Fergus Carroll, an assistant principal officer with the Revenue, said the files showed Mr Lowry bought the house in May 1992. Self-assessment returns in relation to the property were submitted between 1993 and 1996.
The purchase price for the house and 35 acres was £155,000. The value put on the house in the return for 1993 was £115,000. In 1996 it was given as £125,000. There was no mention of the extension or other major work. On the basis of the information submitted, there was no reason for the Revenue to suspect the five-bedroom house was undervalued.
However, following the 1996 revelations in the media, revised valuations were submitted on Mr Lowry's behalf. These were: 1993, £90,000; 1994, £220,000; 1995, £240,000; and 1996, £275,000. They were accepted following consultation with the Valuation Office.
The hearings resume today.
