Ex-tax boss Michael Cranston to face 11 witnesses
Eleven witnesses will give evidence that former Australian Taxation Office deputy commissioner Michael Cranston allegedly abused his position to benefit his son, who has been accused of orchestrating one of Australia’s biggest tax frauds.
Mr Cranston sat in the front row of a courtroom in Sydney’s John Maddison Tower yesterday, as NSW District Court Chief Judge Derek Price asked how his case, which is due to go to trial on January 21, was progressing.
Adam Michael Cranston, Mr Cranston’s son, was one of 14 people arrested in the Plutus Payroll tax scandal, which allegedly involved more than $100 million being skimmed from the ATO through underpaid payroll taxes. The total amount allegedly taken has varied in court documents from $100m to $165m.
Mr Cranston was not arrested over the scandal, and it is not suggested he knew about the scandal or took part in any way. He faces two charges of abusing public office to gain advantage. “The crown estimates it will take 10 days,” Adam McGrath, acting for the crown, said. “It intends to call 11 witnesses, and a proposed crown tender bundle has been served.”
Judge Price asked what the issue was before trial. “The issue is whether my client abused his influence or exercised influence dishonestly,” John Laxon, acting for Mr Cranston, said.
He said prosecutors were planning to rely on internal policy documents from the ATO and phone intercepts that “involve third parties”.
“Intercepts that don’t involve Mr Cranston,” he said.
Judge Price ordered a pre-trial conference on January 14.
The Plutus Payroll investigation, known as Operation Elbrus, saw the arrest of Adam Cranston and Lauren Anne Cranston, the daughter of Michael Cranston.
They were allegedly part of a scheme that used funds from Plutus Payroll clients, diverting them through second-tier companies that would pay part of the payroll tax required.
Courts have previously heard there is a brief of evidence of more than a million pages, with more than 300 lever arch folders and several terabytes of digital data. Daniel Hausman, Christopher Guillan, Aaron Paul, Simon Anquetil, Jason Onley, Devyn Hammond, Dev Menon, Daniel Rostankovski, Paul O’Leary, Joshua Meredith Kitson, journalist Stephen Barrett and lawyer Sevag Chalabian also face charges.
