Australian Taxation Office Deputy Commissioner Michael Cranston has been caught up in a major tax ev

I don't understand why people steal so much. Just nibble a little peice of cheese off the corner.

1million will do me fine thanks

 

This sort of caper is not uncommon. Small amounts fly under the radar. Get too big and you start to smell. But that humongous amount, lol, and you'd be reeking.

Heck, I reckon the people who open and sort the mail in that organisation would be on to it, let alone the top gun head of a fraud division who also happens to be the dad of the alleged culprit lol.

Dad : "Hey, son how's work?"

Son : "Oh, great dad. I've nearly hit $200m in wealth. How's your fraud work going?"

Dad : "Oh, the work's really good. I can now sniff a fraud case from 200 metres. Grab us another long neck from the fridge will ya. I wanna train to sniff a fraudie from 400 metres. My ultimate goal son!"

 

There appears two types of contracting employers. Genuine one's and those that sought to hide dubious concerns. ie a employee who is described as a contractor. You can bet money the ATO will look closer at use of third party contract payroll agencies as a interposed entity for some arrangements. Some (most even) are legit. But this issue has led to a breakdown in the conventional PAYG collections and the system has been bypassed with a revenue loss and I would guess superannaution is affected too. Shortfalls and also avoidance of SGC perhaps.

They could yet go back to some employers and find the employer liable for shortfalls - I wouldnt think they would do that for legit contractors taken in by fraud.

The ATO often use the Taxation Administration Act provisions regarding payg instalment shortfalls as an anti-avoidance rule. TAA s6-5(3) contains a provision they often use....Its says a employer must pay the tax "directly" to the commissioner.....

 

My point... the contractors did the right thing and were given the impression that their tax is being remitted. The companies failed to remit that tax back to ATO which is the unbelievable part. How can you redirect PAYG tax money into a business expense legitimate or illegitimate?

 

Imagine being Adam's new wife, she has/had no idea, 3 months pregnant and finding out it may have all been lies !

 

There was a great related story in the paper this morning.
The ex-girlfriend of the younger Cranston was showered with ill-gotten cash and gifts while she was with him. They busted up last year.
She’s now got a bill from the ATO for $128,000.
The auto signature at the bottom of the ATO letter she got was Michael Cranston.
Scott

 

A bit of perspective From Michael west ...
Plutus: the police raids, the ATO and the real plutocrats | Michael West

 

The Guide to Legal Tax Evasion

 

Large number of those affected would have been govt IT contractors. I know a few who have lost a months wages.
Also plutus was strongly recommended by the labour hire companies as many don't want to deal with payroll

 

The luxury properties linked to the ATO scandal assets frozen