ATO veteran Michael Cranston’s recordings with federal agents played in Sydney court

Inside room 807 of the Crowne Plaza at Surfers Paradise Michael Cranston told federal agents “there are just things that I have to do as a deputy commissioner” during an interview played before a Sydney jury yesterday.

Inside room 807 of the Crowne Plaza at Surfers Paradise Michael Cranston told federal agents “there are just things that I have to do as a deputy commissioner” during an interview played before a Sydney jury yesterday.

It was May 17, 2017 and Australian Federal Police officers had just fronted him near the hotel car park. They seized his phone and iPad and informed him of allegations he twice approached his subordinates at the Australian Taxation Office to try and help his son Adam.

“I know what you’re saying, you’re saying that those gentlemen I have asked to do something,” he said in the interview played in his District Court trial on Wednesday.

Cranston has pleaded not guilty to two counts of using his position to gain a benefit for Adam.

Michael Cranston arrives at the Downing Centre in Sydney. Picture: AAP

The 30-year veteran of the ATO is accused of asking assistant commissioner Tony Poulakis to organise a meeting between lawyers for Plutus Payroll and tax office officials over a $46 million tax debt which had seen the ATO freeze millions in the company’s accounts.

The ATO garnishee order had stopped payments flowing to thousands of workers, who were complaining to the media.

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Cranston told AFP superintendent Tim Underhill that he said to Mr Poulakis: “could you just ring the lawyer in relation to this company and I’ll leave it to you”.

“That was it … I was sick as a dog I didn’t even chase him up that day,” he told the AFP.

“I actually didn’t get involved in the matter, I referred the matter.”

Supt Underhill asked Cranston: “You received a call from Adam’s lawyer, was that the first time you became aware of the garnish”.

Cranston initially responded “That is absolutely the first time”. He then said “I’ll rephrase that. My son might have said to me he’s got a problem”.

Cranston told the AFP he approached Mr Poulakis with the knowledge that news of the ATO freeze on Plutus Payroll was about to be made public.

“It was more about him getting someone to talk to the lawyer … I didn’t want something in the press that we might have instigated,” Cranston said.

Cranston also said “there are just things that I have to do as a deputy commissioner … things get escalated to me all the time.”

Cranston told the AFP he had poor memory of another alleged request he made of assistant commissioner Scott Burrows.

“I have given Scott a number of matter to help with so I can’t recall, I seriously can’t recall,” Cranston said

Crowne Plaza in Surfers Paradise where Michael Cranston told federal agents “there are just things that I have to do as a deputy commissioner”, a court heard.

“Sometimes when you’re a deputy commissioner every three minutes there’s something happening.”

Supt Underhill read Cranston a list of people and companies, many of which Cranston said he knew nothing about. Cranston did, however, remembered hearing the name Peter Larcombe.

“In the early stages he was Adam’s partner … Adam brought him along to dinner one time,” Cranston said.

“I knew he had killed himself, my son said he had got involved with some very bad people.”

He also knew Adam’s business partner Jason Onley.

“I’ll tell you where I met him, I went to the State of Origin, Adam got some tickets,” Cranston said.

HE SHOULD HAVE FLAGGED CONFLICT: CRANSTON’S FORMER BOSS

His boss in 2017 said Cranston should have declared a “conflict of interest” and stayed out of a major ATO crackdown on his son’s business.

Crown witness, ATO second commissioner Neil Olesen said Cranston should have rejected advances by a lawyer for Plutus Payroll who wanted a meeting with tax officials over the company’s $46 million tax debt.

“He should have raised the issue with me, he should have informed the lawyer that he had a conflict of interest and should have not been involved,” Mr Olesen told the court.

Mr Olesen said he had previously heard Cranston explain at work that “Adam was doing well with a private equity firm”.

Michael Cranston

Mr Olesen said Cranston was a gifted tax agent and communicator.

“He was very good, disarming is one way to put it. He was a very charming person to work with … a good, simple straightforward communicator,” he said.

The court heard of two other instances where Cranston faced personal conflicts which he disclosed to Mr Olesen.

In a face-to-face meeting he said Cranston once raised the fact that his wife Gloria, also employed at the ATO, lived in Brisbane while Cranston was based in Sydney. Cranston was concerned there could a perception “the tax office is paying for his visits” when it was not.

Mr Olsen told Cranston he was “satisfied with the arrangements” and asked him send him an email to record that the issue had been raised.

Cranston’s barrister David Staehli SC said his client also flagged a potential conflict over a 2016 wedding he was going. Mr Olesen said Cranston told him he knew guests at the wedding were the subject of an ATO investigation into the use of gold

bullion.

Mr Olsen told the court he had no recollection of Cranston talking to him about the wedding.

The trial continues.

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Originally published as ATO veteran Michael Cranston’s recordings with federal agents played in Sydney court