NATIONAL AUSTRALIA BANK ORDERED TO PAY IRISH COSTS.

MELBOURNE, Aug 2 Asia Pulse - The National Australia Bank (ASX:NAB) has been ordered to pay 64 million euro ($US77.6 million) in costs after a six-year investigation of its Irish subsidiary.

The bank was found liable for tax evasion and overcharging of customers.

Last Friday, the Director of Corporate Enforcement in Ireland released a report on the investigation into National Irish Bank (NIB), which is wholly owned by NAB.

The report said there were clear findings of misconduct in the 1988 to 1998 period with respect to NIB's and NIBFS's (National Irish Bank Financial Services Ltd) participation in arrangements which assisted their customers in defrauding the state of tax income"

It concluded that NIB improperly charged interest and fees to its customers over much of the same period.

The head Ireland's Corporate Enforcement, Paul Appleby, said the bank had paid back 30 million euro to the state and its customers "for past misconduct and improprieties" and would also bear a further 34 million euro in costs.

"The inspectors' findings largely confirm the thrust of the allegations made against the bank and the company in 1998," Mr Appleby said.