ATO deputy commissioner Michael Cranston was issued with a court-attendance notice for the charge of abusing his position as a public official.
Michael Cranston's 30-year-old son Adam and eight other people have been arrested over a $165 million tax-fraud investigation.
Adam Cranston was charged with conspiracy to defraud the government.
It was the culmination of an eight-month sting, codenamed Operation Elbrus, led by the AFP with assistance from the Australian Taxation Office.
AFP deputy commissioner of operations Leanne Close says it is a significant fraud investigation, with the proceeds funding lavish lifestyles.
The AFP alleges the conspirators ran a legitimate payroll company.
The money accepted by the company would allegedly be paid into secondary companies, run by what Ms Close describes as "straw directors" as a front.
And as part of their contractual obligations to those legitimate payroll-company clients, these tier-2 companies are required to remit payments to what you call pay-as-you-go, withholding-tax payments to the ATO. Through our investigations, we found that only part of the tax obligations were paid. So, as you can see, it's a significant defrauding of the Commonwealth, where we are alleging $165 million was diverted to illegal gains," Mr Close said.
ATO deputy commissioner Michael Cranston was issued with a court-attendance notice.
It is alleged he publicly abused his position as a senior official of the Commonwealth.
Police say he could have been unwittingly involved.
Two other ATO employees have also been suspended while the organisation carries out an internal investigation.
Michael Cranston will front the Downing Centre Court on June the 13th.
Police say he faces five years' imprisonment if found guilty.
His 24-year-old daughter Lauren Anne was also charged and will appear at Narellan court next month. (june)
