The son of a high-ranking Australian Tax Office official was arrested at his Bondi home yesterday, in relation to an alleged fraud syndicate reportedly worth as much as an astonishing $165 million.
Adam Cranston, the 30-year-old son of deputy tax commissioner Michael Cranston, was charged with conspiracy to defraud the commonwealth. There is no suggestion Michael was involved in, or had knowledge of, the alleged fraud.
It’s believed eight other individuals were also arrested during the Australian Federal Police raid on 27 properties across Sydney.
The AFP will allege Adam’s legitimate payroll company siphoned clients’ wages through phantom “second tier” companies to attain a lower tax rate, and that the conspirators kept the excess for themselves.
It’s alleged Adam used that cash for luxury properties, boats, high-end sports cars, and even to fund a professional racing team. If proven, the fraud would amount to one of the most significant white-collar crimes committed in Australian history.
The ATO didn’t directly respond to The Herald Sun’s request for a comment on the allegations, instead saying “due to privacy considerations the ATO is unable to comment on individual employees.” The AFP is expected to release a statement on the arrests shortly.
Adam will face Central Local Court today.
Source: The Herald Sun / ABC.
Photo: The Today Show / Twitter.
