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Former ATO boss Michael Cranston abused power to hear his son Sydney Court



Updated

January 23, 2019 21:54:50

The Sydney Court has heard that the deputy commissioner of the former Australian tax office misused their position to influence a collaborator to take advantage of his son.

Former Deputy Tax Commissioner Michael Cranston has been accused of trying to set up a meeting between ATO and parole company Plutus, who was facing a $ 40 million bill in taxes and other costs.

Mr Cranston's son, Adam Cranston, was associated with Plutus, who took services such as salary and supervision to government departments and businesses.

Crow said that between April and May 2017, Mr Cranston told an employee that after contacting the audit team to handle Plutus, after requesting for his son's help.

A tax office investigator who conducted a secret audit of plots told the court that he had received a letter from the employee inquiring about the case and after that he talked with his supervisor, "brought many worries".

Mr. Cranston's lawyer, David Stahley SCA, argued that Plutus had the right to interrogate his client in a tax assessment letter, in fact it was an electronic signature of Mr Cranston.

Soon after sending the letter, ATA Platus received a garnishi command to effectively cool the bank account and to stop the contractors from paying and operating the business.

Mr Stahlie said that the contractors then started talking to the media.

"At that time there was a lot of publicity, there were many contractors who did not make the payment," he said.

He said that ATOs will make major changes about how they deal with customers.

Mr Cranston then tried to hold a meeting between ATO officials and Plutus.

"[Mr Cranston] The tax office attempted to ensure that this type of promotion was not received, where it was found to be misusing its power. "

Colleague asked to find son's business associate

Mr Cranston has not convicted his son during the January and February 2017 accusations of using his position to obtain disproportionate information to get the benefit.

In Early Statements for the Crown, Peter Neal SCA said that Mr Cranston struggled to express interest.

Crow accused that Adam Cranston asked his father whether or not the ATO auditioned a professional partner named Simon Encital.

He said Mr Cranston had obtained a committee to try to find the secret tax office records but described it as "restricted".

Mr Neal said that Mr Cranston gave information to his son, Mr Anquetil puts his son in the "tip off" position.

"[He had a] A clear conflict of interest as the deputy commissioner of taxation, which was involved in the investigation of the suspected tax suspects who threatened major suspected contracts … some may be criminal at some high level.

"He must immediately cancel himself and reject the request."

Mr Neal added that the accused also had a duty to inform ATO her son's request.

The trial is going on before the jury in the Sydney District Court.

Topics:

Law-crime-and-justice,

Court-and-trial,

Corruption,

Fraud-and-corporate-crime,

NSW,

Sydney-2000

First posted

January 23, 2019 21:18:50


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