PAST EXAMS

International Tax Planning & Transfer Pricing –
Exam questions 2012-2013

Transfer Pricing (total 10 points)
Multiple choice questions (1 point for each good answer, 4 in total)

1. Which one of the following statements is true:
a) The OECD Transfer Pricing Guidelines are incorporated in the law of all OECD member states
b) The OECD Transfer Pricing Guidelines in Europe have the same status as EC directives
c) The OECD Transfer Pricing Guidelines have the status of guidelines for OECD member states
d) The OECD Transfer Pricing Guidelines may not be used by non-OECD members

2. Pick the best/only suitable addition to the following phrase:
A routine function is:
a) Not relevant in a transfer pricing analysis
b) The function best suitable to compare in a financial analysis
c) Creating excess profit for the company
d) Always to be remunerated at cost plus

3. In a TNMM it is necessary to determine the most appropriate…..
a) Profit level indicator
b) Allocation key
c) Cost base
d) Management fee

4. The cost plus method:
a) Is not accepted by the OECD
b) Is part of a global apportionment formula
c) Is generally applied when determining the net profit level of a sales activity
d) Is generally applied when determining the gross profit level of a service or production
activity