Preview Questions Tax Manager | Role Specific Skill

Question 1: How do you optimize tax benefits from research and development (R&D) activities in FMCG?

Which action should you take?

Choose only one option

By ignoring government incentives and focusing on overall business growth

By treating R&D as an operational cost without considering tax incentives

By focusing only on the capitalized costs without considering tax benefits

By utilizing available tax credits, grants, and deductions for R&D and ensuring compliance with local and international rules

Question 2: What is the most effective way for an FMCG company to report income from multiple subsidiaries across different jurisdictions?

Which action should you take?

Choose only one option

By using the parent company's income reporting rules across all subsidiaries without adjustment

By focusing only on direct tax filings and not consolidating income reports

By ignoring the differences in tax regulations and reporting income as a global total

By consolidating the income reports into a single financial statement and adjusting for local tax laws

Question 3: How do you ensure compliance with OECD guidelines for transfer pricing documentation in FMCG?

Which action should you take?

Choose only one option

By aligning intercompany pricing structures with the arm's length principle and maintaining comprehensive documentation

By ignoring documentation requirements and focusing only on pricing

By relying solely on local tax laws without considering OECD guidance

By applying blanket transfer pricing models across jurisdictions

Question 4: How can an FMCG company address the risk of inaccurate tax filings due to currency fluctuations?

Which action should you take?

Choose only one option

By reducing foreign currency exposure through hedging without addressing tax filing adjustments

By ignoring currency fluctuations and applying fixed exchange rates for all tax reporting

By relying solely on historical exchange rates and ignoring market changes

By regularly reviewing and adjusting tax filings to reflect accurate currency conversions

Question 5: How should an FMCG company handle VAT/GST refund claims in multiple jurisdictions?

Which action should you take?

Choose only one option

By relying on external consultants for VAT/GST refund claims without verifying the tax filings internally

By delaying VAT/GST claims until the end of the financial year to avoid multiple filings

By ensuring proper documentation of sales and purchases, and filing accurate refund claims

By submitting refund claims only for the largest transactions without proper supporting documentation

Question 6: How do you integrate foreign tax credits into tax filings for FMCG companies with international operations?

Which action should you take?

Choose only one option

By assuming that foreign tax credits are automatically accounted for

By ignoring foreign tax credits and only focusing on domestic taxes

By calculating the eligible foreign tax credits based on tax laws in each jurisdiction and ensuring proper reporting on tax returns

By applying foreign tax credits only to large subsidiaries