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ATO boss says tax fraud haul was $130 million

Australian Taxation Office commissioner Chris Jordan says the amount defrauded was more like 130 million.

Australian Taxation Office commissioner Chris Jordan says the amount defrauded was more like 130 million. Photo: AAP

The tax office estimates a payroll fraud case with links to one of its high-ranking officials amounts to $130 million rather than the $165 million initially alleged.

And not all of it has been lost to government coffers.

“Some people think all of it has gone,” tax commissioner Chris Jordan told a Senate hearing in Canberra on Tuesday.

“There is a lot of properties, real estate, cars, watches, Grange (wine).”

Ten people have been charged in the Plutus Payroll case including Adam and Laura Cranston, the children of Australian Taxation Office deputy commissioner Michael Cranston.

Mr Cranston, who is suspended without pay, is due in court next month to answer charges of abusing his position.

“This was a father misguidedly, with a huge error of judgement, trying to find out some information for his son,” Mr Jordan said.

The allegation against the deputy commissioner had detracted from the success of Operation Elbrus – involving the ATO, Australian Federal Police and Australian Criminal Intelligence Commission – which investigated Plutus Payroll.

“All three agencies separately and independently identified and investigated the syndicate, and then worked together to culminate in the actions earlier this month,” Mr Jordan said.

The commissioner also confirmed the AFP told him on January 11 of the personal relationship between the principals of the alleged fraud and Michael Cranston.

“Commissioner (Andrew) Colvin was clear to me that Michael Cranston was not suspected, and is still not suspected, of being involved in the syndicate and its activities of defrauding the commonwealth,” he said.

“Let me assure you, evidence to date shows that at no time did Michael Cranston directly access taxpayer data systems or access the audit cases under this investigation.”

Mr Jordan said his office was aware the community must have full trust in its integrity, objectivity and expertise.

“We cannot do our job effectively without this,” he said.

– AAP

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