The Minister for Justice, Mr McDowell, was on the Judicial Appointments Advisory Board which advised the Government on the appointment of Judge Alan Mahon as a Circuit Court judge last year despite his having paid a £20,000 (€25,400) tax settlement in 1992.
Mr McDowell, who as Attorney General was on the board when Judge Mahon was appointed, would not say last night whether he had been aware of the judge's past tax issue, or if so, whether he drew the Government's attention to it. The judge said last night that he had informed the board of the matter at the time. A spokesman for the Minister said he would not comment.
A Government spokeswoman said that under judicial appointments procedure the Cabinet is only given the names of those recommended by the board, implying that Ministers were not told of this tax issue.
Judge Mahon's position as chairman of the planning tribunal appeared secure last night despite his confirmation that he paid the tax settlement to the Revenue Commissioners in 1992. This arose from the underpayment of tax by the judge in a year in the late 1980s, when he was a barrister. He confirmed the details of the payment after being told The Phoenix magazine was running a story this morning.
While the publicity is deeply embarrassing for the judge and tribunal, there was no political clamour for his resignation last night. The Government characterised the issue as a private tax matter which had been settled. The main Opposition parties said the matter was embarrassing but not a resignation issue, while Fine Gael called on the Government to clarify the issue. However, disgraced former TD Mr Liam Lawlor, about whom further damaging evidence emerged at the tribunal yesterday remarked: "Let him who is without sin throw the first stone."
Significantly, however, the judge revealed that he had disclosed the matter to the Judicial Appointments Advisory Board before he was appointed as a Circuit Court judge.
Judge Mahon's judicial appointment was designed to allow him to serve on the planning tribunal, a job he began shortly after his appointment as a judge. He was appointed, along with Judge Mary Faherty, as a tribunal member following a request from Mr Justice Flood for extra judges to help with the tribunal's heavy workload.
Last June, following the resignation of Mr Justice Flood, Judge Mahon was appointed tribunal chairman.
The settlement, some €25,395, followed an audit of his accounts by the Revenue Commissioners in respect of one year in the late 1980s. Details were published in the 1992 annual report of the Revenue Commissioners, showing underpayment of tax of £16,006 and £3,994 in penalties and interest.
However, the issue did not come to public notice when Judge Mahon was appointed as both a Circuit Court judge and member of the planning tribunal early last year, or when he was appointed chairman of the tribunal in June.
A Government spokeswoman said last night that this was "a tax matter between the judge and the Revenue Commissioners which the Government understands has been settled". She said the Government had no further comment.
In a statement, Fine Gael said it was "vitally important that the work of the planning tribunal must not be further delayed or undermined". The party also said Judge Mahon had acted correctly in disclosing the matter to the Judicial Appointments Advisory Board. A Labour Party spokesman said: "Whatever the reasons behind this miscalculation of tax liability by Judge Mahon, it is embarrassing for the tribunal but not so important as to interfere with its work."
The judge said last night: "At the request of the Revenue inspector, all records were voluntarily provided by me and upon audit a shortfall in my tax payment was established.
"The settlement involved the payment by me of £20,000 which included payment of interest on the tax due."
The judge declined to comment further when contacted at his home last night.