The Revenue Commissioners have announced that the former Fianna Fáil taoiseach Mr Charles J Haughey has agreed to pay €5 million in outstanding tax and penalties.
The settlement comprises a gift tax of €2,470,000 and interest and penalties of €2,530,000.
"The settlement follows a long and complex negotiations between Revenue officials and Mr Haughey's professional advisors," Revenue said in a statement.
Mr Haughey paid €1,281,718 (£1,009,435), including interest of €637,119 (£501,772) on April 3rd, 2000, in respect of an interim settlement been based on the report of the McCracken tribunal.
In the wake of that tribunal, Mr Haughey was served with a Revenue assessment of £1.164 million which he successfully appealed.
The eventual settlement was for £1,009,435 and involved an admission by Mr Haughey that he had a Revenue liability. However, that did not imply an admission that he had "knowingly and wilfully" failed to file returns in relation to the payments.
:quality(70)/s3.amazonaws.com/arc-authors/irishtimes/e8fa4512-dd7b-401d-9688-d4e6bf1533c3.png)