Mayo TD Ms Beverley Cooper-Flynn told the High Court today she was "horrified" when she found out money she had invested for a client was undeclared to the Revenue Commissioners.
Ms Cooper-Flynn was being cross-examined by Mr Kevin Feeney SC for RTÉ which she is suing for libel following broadcasts she claims falsely suggested she was involved in tax evasion while employed as a financial adviser with National Irish Bank.
Ms Cooper-Flynn said she had "no idea" the client's £113,000 in sterling was undeclared and had no reason to suspect her client, whom she described as a respectable social welfare officer.
She said she was unaware of a memo from investment company CMI to the bank stating it had been "put on notice" the fund was undeclared and so proceeded to arrange the off-shore investment "in the normal way".
Ms Cooper-Flynn said she was horrified to discover the money was undeclared and at that point referred the case to her boss Mr Nigel Darcy.
But Mr Feeney SC accused her of doing "little or nothing" as a financial expert for NIB to process the case correctly in the aftermath of the revelation and alert the Revenue Commissioners.
Ms Cooper-Flynn said the suggestion was "completely untrue" and that referring the case to Mr Darcy was "the most appropriate thing to do".
The case continues this afternoon.