Tánaiste defends ending tax probe

Tánaiste Mary Harney insisted again today she wound up an unfinished probe into corporate tax fraud only after strong advice from her officials.

The former Enterprise, Trade and Employment minister clashed angrily with Labour leader Pat Rabbitte in the Dáil yesterday over his claims she tried to cover up what a department officer would find.

But Ms Harney reiterated today that she only chose to cease the inquiry before she left the ministry in September after consulting with her department’s Secretary, Assistant Secretary, Principal Officers and the Attorney General.

“It was on strong advice from my officials that I acted. I did not initiate the closure,” she explained.

“We were concerned that the passage of time would render the information that was coming to light less useful to the appropriate authorities.”

The investigation was launched by the department under section 19 of the Companies Act in 1990 and focused on companies associated with the Ansbacher tax fraud scandal.

However, before transferring to the Department of Health last September, Ms Harney instructed the authorised officer conducting the investigations to cease his inquiries.

Ms Harney said today that she didn’t allow her public office duties to be compromised in the investigations.

“Lots of things emerged that I didn’t like. This is a small country. I knew many of the people involved.”

But she insisted every matter that should be investigated will be properly pursued by the appropriate authorities.