Former deputy tax commissioner Michael Cranston held a private meeting in his Sydney office with his son Adam and his son’s business partner and lawyer Dev Menon, but says he did nothing wrong because they didn’t discuss specific tax matters only “hypotheticals” and “generics”.

Michael Cranston arrives at the Downing Centre Local Courts this week. Credit:Peter Rae

Mr Cranston was giving evidence for a second day in the District Court where he is on trial accused of acting on the wishes of his son, Adam Michael Cranston, when he contacted a subordinate to arrange an urgent meeting between tax office investigators and Plutus Payroll.

He is facing charges of obtaining information in his capacity at the ATO with the intention of dishonestly obtaining a benefit for his son; and with exercising his influence in his capacity as a deputy commissioner of taxation with the intention of dishonestly obtaining a benefit.

Mr Cranston told the court on Tuesday how he told tax office colleagues about the problems faced by his son and business partners because he was troubled by how tax officers may have applied the law.