Preview Questions Tax Manager | Role Specific Skill

Question 1: How do you handle transfer pricing audits effectively in FMCG companies operating in multiple countries?

Which action should you take?

Choose only one option

By providing minimal documentation in response to audit queries

By preparing robust documentation, ensuring consistency in pricing policies, and proactively addressing potential audit risks

By ignoring prior tax rulings and focusing on the current tax year only

By waiting for auditors to request information without preparing

Question 2: How can an FMCG company optimize tax filing procedures in the face of constantly changing tax laws?

Which action should you take?

Choose only one option

By reducing the number of filings per year to limit exposure to regulatory changes

By relying on one jurisdiction's tax laws and ignoring other regions' changes

By filing tax returns according to the previous year's regulations without considering new laws

By conducting regular tax law reviews and updating internal systems to reflect the latest legal requirements

Question 3: How does "advance tax payments" impact the tax filing and reporting process for FMCG?

Which action should you take?

Choose only one option

Advance tax payments complicate tax reporting by requiring accurate forecasting and payment schedules

Advance tax payments are irrelevant if the company is already profitable

Advance tax payments reduce the tax liability at the end of the year, improving cash flow and reducing the risk of penalties

It only applies to companies with international operations

Question 4: How does the introduction of digital tax filings affect tax compliance in FMCG companies?

Which action should you take?

Choose only one option

It reduces compliance costs but makes cross-border transactions more challenging

It streamlines data collection and reporting, reducing manual errors and improving audit trails

It requires companies to maintain physical documentation and manual records for audit purposes

It increases the complexity of compliance, requiring more advanced systems to manage tax filings

Question 5: How can an FMCG company manage the risk of non-compliance related to digital sales tax in international markets?

Which action should you take?

Choose only one option

By reducing the scope of digital sales and avoiding taxation issues altogether

By applying the same tax rules for digital sales as for physical goods, regardless of jurisdiction

By ignoring local digital tax regulations and focusing only on traditional tax laws

By ensuring compliance with local digital tax laws and reporting requirements for e-commerce transactions

Question 6: How does "audit risk" affect tax risk management for FMCG companies?

Which action should you take?

Choose only one option

Audit risk complicates tax risk management by requiring continuous audit preparedness and documentation

Audit risk is irrelevant if the company complies with all tax laws

Audit risk requires companies to maintain comprehensive records and adhere to tax laws to avoid potential tax audits and penalties

It only applies to companies with large financial transactions