Patrick Eugene "Dutchy" Holland, who is serving a 20-year jail sentence on drugs charges, was granted free legal aid by the High Court yesterday to fight a tax demand for more than £240,000.
The tax demand, for a total of £242,799, has been served on Holland by the Criminal Assets Bureau in respect of income tax assessment and interest.
Mr Justice Shanley yesterday granted an application for legal aid for Holland made by the prisoner's solicitor, Mr James Orange.
But the judge said it would be open to CAB at the time of the full hearing of the case to raise the question of whether or not it was correct to grant legal aid.
If that issue was determined against Holland, there would be judgment against him in the sum of the legal aid involved.
CAB alleges the money at the centre of its claim was received by Holland or derived, or was suspected to derive, from criminal activity.
In an affidavit Mr Orange read to the court, Holland, with an address at Brittas Bay, Co Wicklow, said he had no income derived from drug trafficking.
He added that he had no capital or income at home or abroad "available to me".
Mr Bryan Murray, for CAB, drew attention to the use of the word "available" in the affidavit. Counsel said he could not understand why Holland could not say whether he did or did not own something.
The case is to be mentioned in court again on Friday next with a view to fixing a date for a hearing of the main action.