Mr Ray Burke told the planning tribunal he sometimes used political donations to reduce an overdraft he had on a personal bank account with Ulster Bank.
He did this because his political life was "seamless" and his Dail salary, travelling expenses and other monies were all part of the same "fund", he said.
"I ran an overdraft on that current account and used it to fund sponsorships and whatever political purposes were going on," he said. He consequently ran up the overdraft and had to transfer funds from other accounts to "cover off the overdraft".
"My life was seamless to the extent of politics, I was a politician from the time I got up in the morning until I went to bed at night", said Mr Burke.
He also told the tribunal that between 1984 and 1993 he had operated an offshore account based in Jersey, which contained political donations.
"I was the beneficial owner of the account. It held funds raised in the UK on my behalf, political funds," said Mr Burke.
When asked about the transfer of monies from other accounts into his Ulster Bank account, Mr Burke said: "These are matters that are relevant for discussions with my advisers and Revenue rather than for this tribunal".
He was responding to a question from tribunal counsel Mr John Gallagher SC, who asked Mr Burke whether his "personal bank overdraft was reduced and that you personally benefited from those funds".
Mr Burke said he opened the offshore account in Jersey in 1984 with two lodgements of £35,000 and £60,000. He said the funds were later brought back into the Republic and put on deposit.
Mr Burke was asked by Mr Gallagher why he said he had no offshore accounts when he made his Dail statement in September 1997. "I had no overseas bank account statement in 1997, when I answered that question. I had an overseas account on a previous occasion, opened in 1984 in which there were two lodgements."
Referring to his Dail statement, Mr Gallagher said: "You were asked by Mr John Bruton was the money received used solely for political purposes as tax law requires and you answered yes?". Mr Gallagher asked was that answer now correct.
"We are now getting into the question of Revenue matters, Mr Chairman, and each citizen in this country, including I assume myself, their Revenue and tax matters are private between the Revenue and the individual," said Mr Burke.
Mr Gallagher asked Mr Burke about the total of £118,000 which later formed the "political fund", which still exists today. He asked whether some of the £30,000 given to him by Mr James Gogarty on behalf of JMSE was included in the fund. Mr Burke said it was, because some of the £30,000 "was still unspent".
In relation to his Dail statement about donations, Mr Burke accepted that there were some "errors in detail", but said they were made in "circumstances most traumatic".
Asked again about his account of the meeting of June 8th with Mr Gogarty and Mr Michael Bailey, Mr Burke said there was no one else present. He told Mr Gallagher if anyone had suggested he used his position to influence decisions on planning or rezonings, they "would have been shown the door".