ATO deputy warned son, court told
THE former deputy commissioner of the Australian Taxation Office has been caught out warning his son about the son’s alleged involvement in a major tax fraud conspiracy.
The warning was recorded in a series of phone taps, a court has been told.
Transcripts of phone conversations between Michael Cranston and his son, who is at the centre of the alleged $144 million scam, have been detailed in court documents as up to $71 million worth of assets are frozen.
Federal authorities investigating the fraud case are attempting to claw back Porsches, motorbikes, planes and go-karts – a list of assets worth $66–$71 million that paints a picture of how the proceeds of the alleged scam were splashed about.
The alleged scandal hit the front pages last month when nine people were arrested, including Adam Cranston, the son, and Lauren Cranston, the daughter, of Michael Cranston.
Allegedly, money was funnelled through Plutus Payroll to secondary companies with some being passed legitimately to the Tax Office and the rest being rorted through the failure to pass on the full PAYG tax.
Michael, 58, also appeared in court last week amid allegations he might have unwittingly assisted the syndicate by providing information at the request of Adam, 30. Michael resigned within hours of his court appearance.
Transcripts detailed in court reveal Michael told Adam he had to “be really careful” and was “high risk”.
In intercepted phone conversations, the pair also discussed the possibility of investigations into “unexplained wealth”.
Adam tells his father he has “no unexplained wealth”, to which Michael responds “You’ve got a lot of f**king cars, mate”, The Australian has reported.
Michael Cranston is also recorded telling his son he has to be “really careful”, according to the affidavit.
A separate conversation between Adam Cranston and a friend was also recorded and submitted to the court.
Australian Federal Police barrister David McCalure told the court: “There is an extremely large sum of money that is unaccounted for.
“Every day that goes by increases the prospect that it may not be able to be accounted for.”
A summons filed by the AFP last week revealed they were attempting to claw back 95 bank accounts, 24 superannuation funds, 18 properties, two planes, two boats and 40 go-karts.
Porsches, Mercedes, Mustangs and Audis are in the extensive list that names 65 defendants.
The summons also seeks forfeiture of three cheques for a total $1.16 million made out to a law firm between April 29 and May 5 – just weeks before police swooped.