ATO's Michael Cranston allegedly warned son about fraud probe, saying he was 'high risk'
Updated
The former Deputy Tax Commissioner Michael Cranston was allegedly heard in intercepted phone calls, warning his son Adam that he was at "high risk" as investigators prepared to make arrests in a major tax fraud investigation.
Transcripts of the phone calls were tendered to the New South Wales Supreme Court, where the AFP has been seeking details about Adam Cranston's financial affairs.
Michael Cranston, who resigned from his position last week, allegedly told his son what tactics investigators would use if the case ever came before a "f**king judge."
"They won't get you criminal, it's civil," he told him, but suggested "they'll have a crack".
Key points:
- Alleged phone conversations between former ATO deputy commissioner Michael Cranston and his son have been released
- "You're high risk, because you're connected," he allegedly told his son
- Mr Cranston resigned from the position after being formally charged earlier this month
Adam Cranston and his sister Lauren were among 10 people charged last month, in connection with an alleged fraud worth $144 million.
It is alleged the syndicate used a series of companies to skim tax from payroll, that should have gone to the Commonwealth.
Mr Cranston allegedly told his son investigators may ask questions about his flashy lifestyle and where he earnt his money.
"... Then what we do is go with unexplained wealth. F**k 'em," the then-Deputy Tax Commissioner said, according to the transcripts.
'You've got a lot of f**cking cars, mate'
It is alleged Mr Cranston's son told him he declared $1 million a year in income, on which he paid tax.
"I've got no unexplained wealth, zero," Adam Cranston said.
To that, his father replied: "You've got a lot of f**king cars mate."
"No I don't own them. They're nothing to do with me," Adam Cranston insisted
"OK. I'm just, I'm not trying to scare you Addy," his father replied.
Police have already seized up to $71 million of assets owned by Adam Cranston and other members of the alleged syndicate, including dozens of luxury vehicles, homes and planes.
"You just gotta be really careful mate, at the moment," Mr Cranston allegedly said.
"You're high risk, because you're connected.
'Bigger than f**king Ben Hur'
While it is not suggested Michael Cranston was involved in the alleged fraud, he has been charged with accessing information and using his influence at the ATO to help his son.
The tendered telephone transcripts also detail alleged conversations between Adam Cranston and others, in which he said his father was making enquiries into the matter.
"He's looking into it. Yeah, so considering he doesn't know about it, it can't be bigger than Ben Hur," Adam Cranston allegedly said.
"If this was fully uncovered and they knew exactly what was going on, it'd be bigger than f**king Ben Hur, man."
An associate, Dev Menon allegedly agreed.
"It would be the biggest tax fraud in Australia's history," he said.
Topics: corruption, law-crime-and-justice, fraud-and-corporate-crime, courts-and-trials, police, crime, sydney-2000
First posted
