The Revenue confirmed today it has concluded a settlement with Ansbacher (Cayman) Ltd that involved the payment of €7.5 million.
A spokesman for the Revenue told ireland.comthe settlement followed "detailed discussions with the bank against the background of unusual circumstances and potential protracted litigation, with an uncertain outcome".
However he said the Revenue was still pursuing investigations of individual taxpayers in connection with the Ansbacher accounts.
The settlement brings to €34 million the money which has now been recovered as a result of the Revenue's Ansbacher investigations.
South African bank FirstRand, which owns Ansbacher (Cayman) Ltd, said it had agreed to settle issues linked to alleged tax liabilities involving the Cayman subsidiary.
FirstRand, which acquired the private bank in 1992, said it did not believe it was liable to pay tax for problems that date back over 30 years.
"We are still firmly of the view that there is no liability and that ultimately we would have been successful in court, however to get to that point would have incurred significant legal costs and eaten up considerable management time," FirstRand chief executive Mr Laurie Dippenaar said in a statement.
"Overall it's a very good result for them," said one Johannesburg-based analyst. "For such a serious reputational issue to be dismissed like this for relatively little cost is probably a very good outcome."
FirstRand said that, although it had not made any provision for the full and final settlement, it still expected to achieve results in line with market expectations.
The 2002 Ansbacher report found evidence that Ansbacher (Cayman) Ltd operated a trust structure that allowed widespread tax evasion from the late 1970s to late 1990s.
The report named 190 Irish clients of the bank - called Guinness Mahon Cayman Trust Limited before the Ansbacher Group and then FirstRand bought it - among them former taoiseach Mr Charles Haughey.
However, investigators said that being named in the report did not constitute a finding that any individual evaded tax.
Additional reporting by Reuters