Chief whip of the Dáil's technical group of independent TDs Catherine Murphy has refused to call for Mick Wallace's resignation from the Dáil after he admitted his company under-declared VAT.
Mr Wallace's company, which is now insolvent, came to a €2.1m settlement with the Revenue Commissioners.
Deputy Murphy said she had made it clear to Mick Wallace that he could not remain a member of the group, but she said it was not up to her to call on him to step down.
"I have not called for his resignation. I believe that is not up to me to call for his resignation" she said.
"He is democratically elected to the Dáil…(That question) is up to the people of Wexford (and) they won't have an opportunity to go to the polls until the next general election."
In a statement earlier today, 10 members of the Dáil's Technical Group said: “After requests from independent members of the Technical Group to Deputy Mick Wallace that he step back voluntarily from the group forthwith as a result of last week’s revelations regarding his tax affairs, he has today agreed to do so.”
Earlier, the Ceann Comhairle refused Mr Wallace permission to address the Dáil on the issue of his tax affairs tomorrow.
The technical group of TDs has called for the Government to make time for Mr Wallace to make his statement.