Former girlfriend of Adam Cranston reveals their luxury life
Secret lover's Paris trip
THE former lover of the ATO deputy commissioner’s son, Adam Cranston, has revealed she was lavished with luxury clothes, jewellery, cars and surgery by her lover who is now accused of a multi-million dollar tax fraud.
Toni Brady, 24, told the
Herald Sun she was swept off her feet by Adam Cranston, 30.
“It felt like a Pretty Woman situation,” she said. “He bought me jewellery. Diamond earrings, Hermes bracelets, handbags. My favourite are Dolce and **bana.”
READ MORE AT THE HERALD SUN.
The AFP confirmed this morning a 10th person had been arrested as part of the $165 million fraud.
A 34-year-old Lavender Bay was charged after he returned to Australia yesterday. It will be alleged that the man was a former director of the payroll company who continued to manage it during the conspiracy.
He is expected to appear in Central Local Court today.
The latest arrest comes as it is revealed the alleged ringleaders of an “unprecedented” alleged scam to defraud the Australian Tax Office of $165 million were caught thanks to a series of wire taps.
The Australian reports the accused group
prided themselves on not being “boring’’ accountants, using a former Miss World Australia for their promotional parties.
Beauty queen Erin Holland was one of the tools used to entice prospective clients to an event showcasing the work of Plutus Payroll, the company at the centre of the massive scam, Fairfax reports. Plutus is owned by Sydney-based financial services SYNEP of which Adam Cranston is chairman and managing director. There is no suggestion Ms Holland was aware in any way of the alleged activities involving Plutus.
Toni Brady said she met her former lover through mutual friends and claims to have had no idea he was allegedly involved in the fraud ring. Her bank accounts have now been frozen amid the police operation that could become one of the largest
white-collar crime cases in Australian history.
On Thursday, nine people were arrested over the alleged fraud of Australian taxpayers.
It indirectly involved Australian Taxation Office deputy leader Michael Cranston — Adam Cranston’s father — who was issued a court notice for allegedly abusing his position as a public official.
AFP deputy commissioner Leanne Close said police don’t believe Michael Cranston was aware of his son’s activities, but allege the organised syndicate led a “significant” operation.
“The scale of this alleged fraud is unprecedented for the AFP; the response from our members yesterday is a direct response to the level of offending that we have identified during this operation,” she said.
Toni Brady and Adam Cranston in Dubai.
Source:Supplied
Adam Cranston leaves Sydney Police Centre in Surry Hills after being released on bail yesterday. Picture: Dylan Robinson
Source:News Corp Australia
SCANDAL COULD THREATEN ATO INVESTIGATIONS
The fallout from the alleged fraud is not just confined to those in the sights of the federal police. South Australian Senator Nick Xenophon is warning it could impact on ongoing ATO investigations.
“As shocking as these revelations are, the biggest shockwaves could well be the impact this could have on the Panama Papers investigations, its international implications, and what this could mean for a multi-billion-dollar tax-avoidance investigation — whether this, in any way, could taint or impede any prosecutions,” he told
The Australian.
It is believed the scandal has become full-blown crisis, with the ATO now in more chaos than the last big scandal. That occurred almost a decade ago, in 2008, when former assistant commissioner Nick Petroulias was jailed for two years in 2008 for corrupt conduct after advancing his own business interests.
‘MILIONS DIVERTED FOR PERSONAL GAIN’
Meanwhile,
other members of the alleged scheme have been named as a former crime reporter, a tradie and an unemployed plumber whose mother said he didn’t have “two cents” to rub together.
Nearly 300 police took part in 28 raids across NSW on Wednesday following a complex investigation based around a payroll scheme with “straw directors”.
“It will be alleged in court that the fraud involved a company established by the syndicate to provide payroll services to legitimate clients,” the AFP said.
“The money received from these companies was transferred to subcontracted companies – allegedly controlled by syndicate members – to process payroll. While processing these payments, funds paid by legitimate clients to service tax obligations were allegedly diverted by the syndicate for their own personal gain.”
Luxury cars were among 25 vehicles seized under proceeds of crime, as were two planes, artworks, jewellery, wine and $1 million in cash.
Ms Brady says her rent was even paid.
Source:Supplied
HOW DID IT ALLEGEDLY WORK?
• Police allege the conspirators ran a legitimate payroll company called Plutus and accepted money from clients to process payroll on their behalf.
• Money was transferred to subcontracted or second-tier companies which made the payroll payments. That was legal but police allege what happened next was not.
• The subcontracted companies were allegedly fronts controlled by the syndicate and failed to pass on complete PAYG contributions to the tax office.
• The money was transferred to the alleged conspirators through a series of companies and trusts and used to fund lavish lifestyles.
DOES THE ATO MONITOR THIS SYSTEM?
• The ATO doesn’t have the capacity to audit every single small business or taxpayer so some discrepancies will go unnoticed, University of Sydney tax law expert Micah Burch told AAP.
“The audit rate for small businesses is quite low ... in some ways the system relies on the honesty of taxpayers.”
• Each employee pays different taxes so employers who withhold PAYG commitments can fly under the radar because there’s no set payment amount.
• The alleged scheme was not particularly sophisticated, Burch believes. “Everyone knows the ATO can’t audit everyone. It just seems to rely on the fact that stuff like this will get lost in the sea of transactions.”
DOES THE ATO NEED MORE RESOURCES?
• Burch says ATO resources have been cut drastically over the past decade.
“Those kinds of cuts can’t not have an affect on enforcement and compliance. The more ATO agents they have the more they can expose crimes like these.”
http://www.news.com.au/finance/econ...e/news-story/5e2c47e9c34a7b09eef9cb6ab57cb0c9
