"I reject absolutely the suggestion that I,or any members of my staff,altered the documents in question,"Mr Taylor told Parliament on Tuesday.
"I won't be lectured to by the party of Aldi bags and wine boxes full of cash,Mr Speaker. I'm not going to be lectured to about integrity in the week that Labor is celebrating Eddie Obeid coming out on parole."
NSW Police said detectives from the State Crime Command's Financial Crimes Squad had launched Strike Force Garrad to"investigate the matters and determine if any criminal offences have been committed".
"As investigations are ongoing,no further information is available,"it said in a statement.
A spokesman for Cr Moore said police had contacted the council about their"investigation into falsified city documents used to inform Minister Taylor's correspondence with the lord mayor".
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"The[council] will fully cooperate with the police investigation,"the spokesman said.
The City of Sydney has not made an official police complaint,and federal government sources on Tuesday night were confident Mr Taylor and his office had no case to answer.
Mr Albanese said ministerial guidelines made it"clear"Mr Morrison should stand down Mr Taylor,given the minister was the subject of an official investigation of an alleged illegal conduct.
He said Mr Taylor"cannot survive this day",citing former Liberal senator Arthur Sinodinos'decision to step aside when he was investigated by the NSW Independent Commission Against Corruption in 2014.
"The Prime Minister needs to stand him aside today. This farce whereby a minister has continued to just have this born-to-rule mentality on display for all,thinking that he can get away with anything he likes because he's above the common people,and indeed the Parliament,"Mr Albanese said.
"We will continue to pursue these actions. The Prime Minister,if his ministerial standards mean anything at all should have stood aside this minister well before now."
Federal Labor had written to Mr Fuller to investigate whether there had been any breaches of the state Crimes Act,particularly whether the allegedly doctored document was used to influence Cr Moore in the exercise of her duties.
Mr Dreyfus said at the time that if any offence was proven,the police should also look in to whether Mr Taylor or anyone in his office was aware of the situation.