![Tax Commissioner Chris Jordan admitted at the National Press Club on Wednesday that the Plutus tax fraud had tarnished ...](http://web.archive.org./web/20170705092012/http://www.afr.com/content/dam/images/g/x/5/0/v/9/image.related.afrArticleLead.620x350.gx4zbs.png/1499237288175.jpg)
A family break-up contributed to the bad judgment displayed by Michael Cranston, whose career was destroyed by his association with the Plutus tax fraud, Tax Commissioner Chris Jordan said.
But the ATO's systems had not been compromised and police did not believe Michael Cranston was involved in the criminal syndicate that allegedly fleeced $133 million from the ATO, he added.
"The involvement of Adam Cranston, son of the deputy commission Michael Cranston, has been difficult to comprehend," Mr Jordan told the National Press Club on Wednesday.
"The charges against Michael Cranston had been equally hard to believe and at the ATO we are dismayed at the events that have unfolded in this regard."
Mr Cranston, a 30-year veteran of the ATO, quit on June 13, the same day he appeared in court on charges of allegedly abusing his position as a public official.
As Mr Jordan explained, Michael Cranston sought to access information on behalf of his son but was denied access, which meant the systems were working as they should.
"The connection with, and alleged actions because of his son, have ruined his [Michael Cranston's] career and his reputation, and have compromised our standing and raised questions about the integrity of others within the ATO," Mr Jordan said.
"I think it was captured well by The Australian Financial Review this week – when Neil Chenoweth wrote that when Adam reached out his father last February for help, it was far too late.
"For Michael Cranston, the tension that drives a father to ignore the faults of their child, to want to help them no matter what, was overlaid by the overwhelming guilt and recriminations that are inevitable in any family break-up."
Three other senior ATO officials are being investigated for breaching the Australian Public Service Code of conduct.
Mr Jordan described what had happened as "ugly" and willingly conceded: "It has tarnished us".
But he also emphasised the fact Michael Cranston is not suspected of being involved in the syndicate.
Nor had there been any fraudulent or corrupt activity by staff of the ATO.
He believed this would be confirmed by an independent inquiry launched by the Inspector-General of Taxation.
Mr Jordan also praised the ATO's involvement in Operation Elbrus, which had uncovered "staggering amounts of rapid wealth accumulation" by members of the alleged syndicate.
"We actually do have, and we have had, extremely low incidence of fraud at the ATO in our staff in all of our long history."