The 130,000 tax settlement made by Mr Michael Collins TD will be discussed next Wednesday by the Committee on Members' Interests of Dáil Éireann.
The committee has the power to convene an investigation into Mr Collins's tax affairs. If such an investigation finds against Mr Collins, the committee can propose a Dáil resolution to censure him or suspend him from the Dáil for a definite or indefinite period.
In addition, the Standards in Public Office Commission has sent a file on Mr Collins's tax-clearance certificate to the Director of Public Prosecutions, Mr James Hamilton.
The certificate was submitted along with a statutory declaration that his tax affairs were in order at the time of the general election last year.
It is not known what action Mr Hamilton's office may take but the penalties for breaches of the Statutory Declarations Act include a fine of €2,539 or up to six months in prison.
