Former prime minister Brian Mulroney, right, and commissioner Jeffery Oliphant wait for the start of the day's proceedings at the inquiry in Ottawa on Wednesday. (Sean Kilpatrick/Canadian Press)

After six days of questioning, former prime minister Brian Mulroney wrapped up his testimony Wednesday at a federal inquiry examining his business dealings with Karlheinz Schreiber, saying he felt he had been treated "very fairly and with great respect."

"Mr. Mulroney, you've been on the stand for I think the longest of any witness I have either been involved in as a lawyer or in 24 years as a judge," Justice Jeffrey Oliphant told Mulroney at the inquiry in Ottawa.

"I want to assure myself before you leave, sir, that you feel, despite probing questions that may have been asked, that you leave here feeling that you’ve been treated fairly and with respect."

Mulroney said he believed he was treated "very fairly and with great respect."

"The probing questions I thought were appropriate and didn't either bother me or offend me in any way. So the answer to the question is very much in the affirmative. And I thank you sir for your kindness."

Mulroney, who first appeared last Tuesday, was questioned for two days by his own lawyer, Guy Pratte; three days by lead inquiry lawyer Richard Wolson; and most of Wednesday by Richard Auger, Schreiber's lawyer. Mulroney had been originally slated to appear for four days.

The Oliphant inquiry is looking into three cash payments Mulroney received from Schreiber at three hotels in Montreal and New York between 1993 and 1994.

Schreiber has said he paid Mulroney $300,000 to lobby domestically on behalf of Thyssen Industries, a German company that wanted to build a light-armoured vehicle plant in Bear Head, N.S., and obtain a contract to sell military vehicles to the Canadian government.

But Mulroney has said he was paid $225,000 in three instalments and that the money was payment for his efforts to promote the vehicles internationally. He has denied it was for any domestic lobbying work, which would have violated Canadian lobbying rules.

Expressed regret

Over the six days of testimony, Mulroney stressed the he did nothing illegal and was involved in no wrongdoing but that he regretted his actions. He said while the transactions might have been unusual, there was nothing "sinister" about them.

He acknowledged he had tried to hide his business relationship with Schreiber to avoid the rumours and speculation that fuelled allegations against him in the Airbus affair. But he also defended the cagey sworn testimony he gave in 1996 about his relationship with Schreiber, saying he didn’t believe he had an obligation to volunteer information about his business dealings with him.

Another issue raised at the inquiry has been the taxes Mulroney paid on the money he received.

Mulroney said he considered the money a retainer and that according to his understanding of tax laws, he did not have to pay taxes until that income was declared. Mulroney waited until 1999 to pay the taxes because he said he had ended the retainer with Schreiber after Schreiber was charged in Germany with tax evasion, fraud and bribery.

On Tuesday, it was revealed that Mulroney paid income tax on only half of the $225,000 he said he received from Schreiber.

Mulroney said his tax lawyer dealt with the issue and that he had no involvement in the arrangement his attorney made with tax officials.

But Wayne Adams of the Canada Revenue Agency told the inquiry on Wednesday that typically, retainers are declared as income in the year they are received. If a person doesn't use the full retainer during that year, the taxes can be paid later. But tax officials are supposed to be made aware of the retainer.

Grilled by Schreiber's lawyer

Earlier Wednesday, Schreiber's lawyer Auger referred to a letter written to tax authorities in 2000 by a Mulroney attorney to resolve issues regarding the payments.

He said the letter suggested that Mulroney did not know the exact amount of cash he received from Schreiber for their dealings.

The letter said, "The complete disclosure of the amounts involved (between $150,000 and $225,000) will be completed by March 5, 2000."

"It says between 150 and 225," Auger pointed out as he questioned Mulroney at the inquiry.

"I have no idea. Was this negotiation or discussion?" Mulroney said. "I told [the lawyer] it was 225."

"You don't negotiate the amount of cash you received. That is not negotiable," Auger said.

Mulroney said he didn't understand the question Auger was asking.

"My point is in January 10, 2000, you are advising Revenue Canada through your tax counsel that the amount of money you received was somewhere between 150 [thousand] and 225 [thousand]," Auger said.

"So the point is on January 10, 2000, you didn't know with certainty if it was 150 or 175 or 200 or 225?"

"I did indeed know," Mulroney said, adding he told his tax lawyer in December 1999 that the amount was $225,000 and for him to resolve it.

Auger pressed Mulroney on the amount of money he claimed to have received from Schreiber. He referred to a draft mandate memo written in 2000 by former Mulroney aide Fred Doucet to clarify the relationship between Mulroney and Schreiber. Doucet testified he had met with Schreiber to discuss the mandate memo. The draft memo, which Doucet told Mulroney about, stated that Mulroney received $250,000.

Mulroney said the figure listed on the early draft was not significant because he was in the process of terminating his business relationship with Schreiber and saw no need to tweak the memo's details or formalize it.

"The fact that Mr. Schreiber changed his mind and said it's no longer 300, it's 250 — you know, wait a week and he probably would be down to 225 or 200," Mulroney said.