Elizabeth Cranston's fraud count dismissed

The daughter-in-law of former Australian Taxation Office deputy commissioner Michael Cranston has had a fraud charge withdrawn by prosecutors.

Elizabeth Cranston, wife of Adam Cranston, was charged with publishing false or misleading material to obtain a financial advantage.

But the charge against the 32-year-old was withdrawn and dismissed on Thursday in Sydney's Downing Centre Local Court.

Her husband, his sister Lauren Cranston and others have been accused of fraud offences relating to an alleged $90 million loss to the commonwealth.

The scam is said to involve withholding PAYG tax with the proceeds splashed on luxury items including properties, cars and planes.

Michael Cranston resigned as ATO deputy commissioner in June 2017, hours after he appeared in court on two charges of abusing public office to gain an advantage.

Police believe he may have unwittingly been implicated in the syndicate's scam at the request of his son.