Home topics finance finance-cash-flow Accounting Cashflow News Accounting Ten ways to trigger an ATO audit Dynamic Business May 22, 2014 As the end of financial year approaches, the Australian Taxation Office (ATO) is expected to data-match over 640 million transactions to tax returns this year. Greg Travers Tax Director at national accounting and advisory firm William Buck said that with increased ATO scrutiny, private businesses are in danger of triggering an ATO audit, regardless of whether they have done anything wrong. “While ATO audits are a necessary part of an effective tax system, they can be expensive and disruptive for a business. There are a number of common ways in which a private business may trigger an ATO audit,” he said. “What these triggers show is that tax compliance – in particular annual income tax returns – should be treated as far more than a routine process. “Private businesses would do well to learn from the larger corporate taxpayers and take a more proactive approach to managing their tax exposures.” Travers outlines the ten most common ways to trigger an ATO audit: 1. Financial performance that is out of kilter with your industry As a matter of course the ATO will statistically analyse your tax returns. If your performance is inconsistent with your industry peers, this can be an indicator of tax issues such as unreported (cash) income, transfer pricing and other issues. 2. Not paying the right amount of superannuation to your employees If employees complain to the ATO