Labor seeks tax office assurances

As the fallout continues over a major fraud case involving the Australian Taxation Office, Labor says a renewed commitment is needed to other probes.

Seized items are displayed at a press conference

As the fallout continues over a major fraud case involving the Australian Taxation Office. (AAP)

Labor has called on the tax office to ensure investigations such as the Panama Papers are not in jeopardy following the launch of a major fraud case involving a senior official.

Two children of the Australian Taxation Office's deputy commissioner Michael Cranston have been accused of taking part in an elaborate theft worth $165 million.

Mr Cranston himself has been issued with a court attendance notice for allegedly abusing his position as a public official.

The two Cranston children, Adam and Lauren, were among nine people nabbed after an eight-month operation.

Labor shadow assistant treasurer Andrew Leigh said he was concerned about other probes including the ATO's investigation into tax evasion, tax minimisation, unexplained wealth and possible criminal activity exposed in the Panama Papers.

"That's certainly my first concern," Dr Leigh told ABC radio on Friday.

"It is obviously good that the tax office's systems flagged this issue up, but it is an incredibly serious challenge.

"Labor is concerned that those ongoing multinational tax investigations continue to take place."

Inspector-General of Taxation Ali Noroozi, whose office has the power to review the ATO, said the Cranston case was concerning.

But any broader inquiry into the tax office would have to wait until the ongoing investigation is complete.

"We do not want to do anything to prejudice that investigation," he told AAP.

"If it becomes desirable or necessary for us to conduct a review to ensure that the right practices, right procedures and right enforcements are in place, or if the community wants assurance that everything had worked as it was intended ... we would be happy to do that."

Mr Noroozi can instigate a review himself, or be directed to do so by a minister.

Dr Leigh said the case reinforced the need for more work on a national integrity commission.

He said he would like to see Australia adopt a similar system to the US and UK where whistleblowers on private sector corruption are able to claim as a reward a small portion of the penalty imposed on the wrongdoer.


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Source: AAP



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