AI in Transfer Pricing Quiz

Answers and explanations appear as you take the quiz.

1. In a benchmarking study, which step does the guide say benefits most from AI?
   • Choosing the tested party's legal form
   • The qualitative review of business descriptions to accept or reject candidate comparables
   • Setting the country-by-country reporting threshold
   • Signing intercompany agreements
2. What is the US name for the method the OECD calls the transactional net margin method?
   • Comparable profits method
   • Resale price method
   • Cost plus method
   • Profit split method
3. How is a benchmarking result for a routine entity usually expressed?
   • As a single average tax rate
   • As a royalty percentage
   • As an interquartile range of a profit-level indicator such as operating margin
   • As a total of intercompany invoices
4. Under BEPS Action 13, which documents do many countries require?
   • Only a country-by-country report for every company
   • A master file and a local file, plus country-by-country reports for large groups
   • Only intercompany invoices
   • A single global tax return
5. What does the guide say auditors may ask for, which makes unexplained AI decisions risky?
   • The model's training data
   • The company's share price history
   • A full rejection matrix with a reason for each excluded company
   • The vendor's source code
6. Where does the guide recommend keeping margin calculations and adjustments?
   • In deterministic spreadsheet or database calculations
   • In the language model's generated text
   • In interview notes
   • In the functional analysis narrative
7. What should a well-designed AI screening output include with each label?
   • A recommended tax rate
   • The company's stock ticker only
   • A marketing summary of the company
   • A confidence level and the specific description text that supports the label
8. Why does the guide say a fluent AI-drafted functional analysis can still fail?
   • Tax authorities ban AI-written text
   • If it is built on wrong interview facts, the conclusions are still wrong
   • Functional analyses are no longer required
   • It will always exceed page limits