Fianna Fáil TD Ms Beverley Cooper Flynn has told the Dáil she fulfilled all her legal and ethical obligations as a bank employee in helping her parents invest £25,000.
In a personal statement to the Dáil, the Mayo deputy emphatically denied engaging in or assisting tax evasion.
Her 10-minute address to a silent Chamber follows allegations over the weekend that she assisted her father, former Minister and EU commissioner, Mr Padraig Flynn, to avoid tax by lodging a £50,000 cheque from developer Mr Tom Gilmartin in a bogus non-resident account.
"I did not own the funds invested. I did not personally benefit from the investments, nor from the proceeds of the investments made by my parents.
"I did not set up a bogus non-resident account. I did not in any way engage in, or assist, tax evasion as has been alleged, and the allegations that have been made about me personally to this effect in recent days are false and unfounded."
She said, as a National Irish Bank employee, she advised her father in 1989 about £25,000 he wanted to invest, but she did not know the source of the money.
The investment was made into three different funds in her parents' names at an address in Brussels. Mr Flynn was commissioner from 1993 to 1999.
Her name was included "simply to allow me to take care of any alterations of the investment down the line that my parents might request".
All the investments were legal, she indicated the investments were confidential, she advised her father of the exchange control requirements in relation to the investments and she notified him of his tax obligations.
Ms Cooper Flynn said that in 1998 she answered every question asked by the Flood/Mahon tribunal, but in December last year the tribunal asked her about bank account documents relating to her parents. In January this year she was asked for a "narrative" about her dealings with the bank accounts, which was submitted to the tribunal yesterday.
"In submitting that narrative, I consider that I have fulfilled my ongoing obligations to the tribunal, both as a citizen and as a public representative."
"Exchange control forms were duly completed in accordance with the then Central Bank requirements. The investments were placed in the names of Padraig and Dorothy Flynn and myself, Beverley Flynn.
"My parents, Padraig and Dorothy Flynn, were at all times the beneficial owners of the investments. I had no beneficial interest in them at any time."
