'It's a pretty heavy allegation': court played ATO official's police interview

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'It's a pretty heavy allegation': court played ATO official's police interview

By Georgina Mitchell

A former Australian Taxation Office deputy commissioner accused of misusing his position to help his son denied to police that he tried to influence his colleagues.

Michael Bede Cranston, 59, is charged with one count of obtaining information with the intention of dishonestly obtaining a benefit for his son Adam, and with exercising his influence in his capacity as a deputy commissioner of taxation with the intention of dishonestly obtaining a benefit.

Michael Cranston arrives at Downing Centre District Court last week.

Michael Cranston arrives at Downing Centre District Court last week.Credit: James Alcock

He has pleaded not guilty to both charges. His trial opened in the NSW District Court last week.

It is alleged Mr Cranston asked one of his subordinates, assistant commissioner Scott Burrows, to access restricted computer records relating to one of his son's business associates but misled him about the purpose of the search.

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He is also accused of contacting another assistant commissioner, Tony Poulakis, to help facilitate a meeting with a company his son was connected with, Plutus Payroll.

Mr Cranston’s barrister, David Staehli SC, told the jury that his client made both sets of inquiries during the broad scope of his duties as a senior ATO official.

On Wednesday afternoon, as the Crown closed its case, the court was played a lengthy interview between Mr Cranston and two police officers which was carried out in a hotel room at the Crowne Plaza in Surfers Paradise on May 17, 2017.

Mr Cranston had just handed over his phone and iPad, had given the officers passwords to both, and said he had nothing to hide.

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He refused the offer of a lawyer, telling the police, "I don't even have a lawyer. I wouldn't even know who to ring".

Over the next two hours and 16 minutes, including several breaks, Mr Cranston was asked about his son's business dealings and associates, and the conversations with his subordinates.

He appeared to struggle to recall the conversation with Mr Burrows, but said he did not intend to influence either of the men. He said his job constantly involved fielding inquiries and phone calls and asking his co-workers to look things up and fix problems.

"There's nothing to do with trying to get any favours or anything like that. I just don't do that," Mr Cranston said.

"It's a pretty heavy allegation ... If there is an explanation for it, I will give it."

Questioned about the situation with Mr Poulakis, Mr Cranston said he received a phone call about Plutus and passed the matter on to Mr Poulakis because it involved his son, which could be a conflict of interest.

"I did say to him, 'my issue is it's connected to my son somehow'," Mr Cranston said.

"I passed the matter on because of the conflict. I would've tried to understand it more if it was an independent taxpayer. I would've gotten more heavily involved.

"I said to Tony, 'I can't get involved'. That's the main reason I referred it on to Tony. I didn't want to influence him in any way."

He said he felt declaring the conflict verbally to an assistant commissioner was "sufficient" but later conceded he was home sick at the time of the call and could have exercised his judgment "a little bit better".

"I still believe all I was trying to do was help the tax office in that matter," Mr Cranston said.

The trial continues before Judge Robyn Tupman.

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