"I have always paid my taxes. I've always gone to the best available people," Redknapp told Southwark Crown Court as he began giving evidence in his trial for allegedly cheating the tax authorities.
"I have always paid too much tax rather than not enough," he added, Britain's Press Association reported.
Redknapp later shouted at a City of London police detective for "staring" during heated scenes in court.
"Mr Manley, will you please stop staring at me. I know you are trying to cause me a problem, OK," Redknapp said, before turning to judge Anthony Leonard to apologise for the interruption.
Redknapp, wearing a blue suit with black sweater, said West Ham told him he had done "fantastic."
"The club was not contractually obligated to pay that money I suppose," he said.
The prosecution alleged earlier that the multimillionaire football manager was sent bungs into his Monaco bank account because he was "greedy."
In heated exchanges with Mandaric, prosecution lawyer John Black said the tax dodge was "all about Mr Redknapp and he was greedy and wanted more money."
The lawyer asked Mandaric: "That's the truth isn't it?" Mandaric, standing in the witness box, replied: "Absolutely not true."
