Former deputy tax commissioner Michael Cranston not guilty of misusing position to help son
“A beer with friends” was the first order of business for emotional former deputy taxation commissioner Michael Cranston as he stepped out of court today cleared of misusing his position to help his son.
“A beer with friends” was the first order of business for emotional former deputy taxation commissioner Michael Cranston as he stepped out of Downing Centre Court an innocent man today.
A jury took about two days to find Cranston, 59, not guilty on two charges using his position as a senior Commonwealth public servant to help his son Adam, after a two-week trial.
Outside court Cranston said the charges were the greatest challenge he had ever faced and he never lost faith in his innocence.
“When you know you’re innocent and you know things can go wrong and I’ve never felt like that in my life. I’ve never been so emotional in my life,” Mr Cranston said.
The father-of-three and tax office veteran of 30-plus years was arrested in a sweeping AFP operation in May, 2017.
“Absolutely shocked when I got charged, I just know looking at what I did, I was just doing my job I was just passing on a matter I declare my conflict about my son and that’s what I do every day,” Mr Cranston said, speaking openly for the first time since his arrest.
“Yeah it’s about a father and a son, I love my children and I will always love my children.”
He described being at the centre of a major investigation after a distinguished career conducting them himself, including the fact AFP recorded phone calls between he and his son.
“Wiretaps for, what, nine months or something … you talk to your son in nine months you do say some things but there was nothing there showing that I had done anything wrong,” he said.
“To actually be accused of something like this … I’ve always been an advocate to make sure people comply with the tax laws and I’ve worked very hard, all that international work I’ve done”
“I do it for this country and just to actually be charged on something like this … it’s probably the worst thing that has ever happened in my life.”
He said he planned to pursue consultancy work but a drink with supporters was his first priority.
“Firstly I’m going to have a beer with my friends, that’s going to be really important today,” he said.
Cranston, 59, was on trial in the NSW District Court after pleading not guilty to using information he obtained as a deputy commissioner, and exercising influence in the capacity of his role, with the intention of dishonestly obtaining a benefit for his son Adam.
The jury returned not guilty verdicts on both counts on Friday, having retired on Wednesday following the three-week trial.
The Crown had told the jury that Mr Cranston, now 59, instructed a staff member to search for information on an audit after a request from Adam Cranston in 2017.
Prosecutor Peter Neil SC, during his opening address, said Mr Cranston’s son had a commercial relationship with the subject of the audit, Simon Anquetil. “(Michael Cranston) should have recused himself from that request immediately,” Mr Neil said.
Instead, Mr Cranston informed his son his co-worker couldn’t access the protected information, the jury heard.
The prosecutor said the second charge involved an allegation that Adam Cranston again asked his father for help in relation to a company named Plutus Payroll, after the ATO issued orders which had the effect of freezing its accounts. The crown case was that Mr Cranston exercised his influence by contacting an assistant commissioner for help.
But Mr Cranston during the trial said he was “very comfortable and confident” he did the right thing when his son contacted him for information for Mr Anquetil, a business associate.
He said Adam came to him with a strongly worded tax office letter sent to Mr Anquetil which Mr Cranston believed indicated “an incorrect application of the law”.
He told his son: “I will try and get somebody to try and deal with it but I can’t get involved in any decision-making or any of the detail.” Mr Cranston said he was concerned about “the culture side of it” and wanted to know what area was treating taxpayers “like this”.
“All I wanted to find out was what area is it being done in,” he said. “I would never have got involved.” Mr Cranston’s barrister, David Staehli SC, said during his opening address that it wouldn’t be proven that his client “believed he had no right to make the contacts which he did”.
Mr Cranston disputed that he “acted in any way dishonestly in relation to either of these charges”, Mr Staehli said.
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