Mr James Gogarty has admitted engaging in a persistent tax fraud against the Revenue Commissioners over several years by holding up to £180,000 in offshore tax accounts.
Mr Gogarty said he regretted what he had done but pointed out that he had regularised his tax affairs during the 1993 tax amnesty and had been in good standing with the Revenue Commissioners since.
Mr Brian Leonard SC, for a former accountant with the Murphy group, Mr Gerry Downes, said Mr Gogarty had transferred £80,000 from his trust fund in Guernsey to a bank in the Isle of Man in November 1989.
Mr Gogarty agreed but said that £40,000 of this was accrued interest on the trust set up for him by Mr Joseph Murphy senior.
According to Mr Leonard, the witness lodged £18,900 into the Isle of Man account in February 1990.
Further lodgements of £25,000 and £11,980 followed in February 1991 and January 1992, respectively.
The accounts showed that Mr Gogarty ended up with £180,000 in an Isle of Man offshore account in November 1993.
"You engaged in a persistent tax fraud against the Revenue of this State for several years," Mr Leonard said.
"I will admit that. I regret it but I admit it," Mr Gogarty replied.
He had been advised to do so because of the attractive rates available, up to 14 per cent.
Mr Leonard said the witness had given express instructions that correspondence from the bank should not be transmitted to Dublin.
Mr Gogarty replied that this was normal practice at the time.
Referring to a document apparently prepared for the amnesty, Mr Leonard said it appeared that the witness had put a car worth £35,000 through the amnesty at a value of £12,000.
Mr Gogarty said this was not the case. The car had been valued at this amount by the supplier.
Asked whether he had cheated the Revenue when availing of the amnesty, Mr Gogarty said this was "a scandalous allegation".
Earlier, Mr Leonard said Mr Gogarty had started off in business in partnership with Mr Francis O'Brien, but this was dissolved in 1951. Mr Gogarty went to the High Court twice around this time to recover a sum of £2,063 but was unsuccessful.
Mr Leonard said that in earlier evidence Mr Gogarty had said he was in receipt of a non-contributory old age pension. He queried whether this was so.
Mr Gogarty replied that he had been in error. He was in receipt of a contributory pension. It was not a deliberate lie. However, he didn't get the full amount because "they did me out of something".
Before Mr Leonard started questioning Mr Gogarty, the chairman, Mr Justice Flood, warned counsel to confine his cross-examination to matters relating to his client, Mr Downes.
"We cannot afford to rescramble the egg once more. It would be unfair on the public funds to do so."
