INTERMEDIATE LEVEL

Tell us about a time when you had to handle a non-compliance issue. How did you address it?

Sample answer to the question

In my previous role as a Tax Compliance Specialist, I encountered a non-compliance issue when one of our subsidiaries failed to report certain taxable transactions. To address this issue, I immediately conducted a thorough review of the subsidiary's financial records to identify the extent of the non-compliance. After gathering all the necessary information, I collaborated with the subsidiary's finance team to rectify the situation. We prepared amended tax returns and promptly submitted them to the tax authorities, along with a detailed explanation of the oversight. Additionally, I implemented new internal controls to prevent similar non-compliance issues in the future. This experience taught me the importance of proactive monitoring and the significance of teamwork in resolving non-compliance issues.

A more solid answer

During my time as a Tax Compliance Specialist at XYZ Company, I encountered a non-compliance issue when one of our subsidiaries failed to report certain taxable transactions. To address this issue, I immediately conducted a comprehensive risk analysis to determine the potential impact and extent of the non-compliance. Utilizing my proficiency in tax software and Microsoft Office Suite, I meticulously reviewed the subsidiary's financial records and identified the specific transactions that were missed. I then collaborated with the subsidiary's finance team to rectify the situation. We prepared accurate and complete amended tax returns and submitted them to the tax authorities, accompanied by a detailed explanation of the oversight. Furthermore, I implemented new internal controls and conducted training sessions to ensure future compliance. This experience highlighted the importance of regular monitoring and reinforced my commitment to accuracy and attention to detail.

Why this is a more solid answer:

The solid answer addresses all the evaluation areas, including risk analysis, tax compliance, and collaboration and teamwork. It provides specific details about the candidate's role in conducting a comprehensive risk analysis, using tax software and Microsoft Office Suite, and collaborating with the finance team. The answer also highlights the candidate's commitment to accuracy and attention to detail. However, it can be improved by providing more information on the specific tax compliance regulations and the candidate's effective communication and advisory skills, which are mentioned in the job description.

An exceptional answer

As the Tax Compliance Manager at ABC Corporation, I encountered a non-compliance issue that involved unreported taxable transactions by a subsidiary. I addressed this issue by first conducting a detailed risk analysis, assessing the potential financial and reputational risks associated with the non-compliance. Utilizing my expertise in tax compliance regulations, I conducted an extensive review of the subsidiary's financial records, identifying the specific transactions that were missed. With the support of my cross-functional team, we utilized tax software and Microsoft Excel to accurately calculate the tax liabilities and prepare amended tax returns. To mitigate the impact of the non-compliance, I proactively engaged with the tax authorities, providing them with a comprehensive explanation of the oversight and demonstrating our commitment to rectifying the situation. In addition to implementing new internal controls, I also conducted training sessions to enhance tax compliance awareness among the finance and accounting teams. This experience showcased my strong analytical skills, effective communication, and ability to lead cross-functional projects.

Why this is an exceptional answer:

The exceptional answer exceeds the basic and solid answers by providing even more specific details about the candidate's role in conducting a detailed risk analysis, utilizing tax software and Microsoft Excel, and engaging with the tax authorities. It also highlights the candidate's strong analytical skills, effective communication, and ability to lead cross-functional projects. Furthermore, the answer emphasizes the candidate's commitment to mitigating the impact of the non-compliance and enhancing tax compliance awareness among teams. The only aspect that could be further improved is providing examples of the candidate's advisory skills and how they advised management on the tax impact of the non-compliance.

How to prepare for this question

Review tax compliance regulations and stay updated on changes in tax legislation to demonstrate knowledge and expertise.
Familiarize yourself with tax software and Microsoft Office Suite to efficiently analyze financial records and prepare accurate tax returns.
Develop effective communication and advisory skills to effectively communicate non-compliance issues to relevant stakeholders and provide recommendations for rectification.
Highlight experiences where you demonstrated strong project management and collaboration skills, as the role requires cross-functional collaboration and leadership in tax-related projects.
Share examples of implementing internal controls and conducting training sessions to promote tax compliance and reduce the risk of non-compliance.

What interviewers are evaluating

Risk analysis and decision-making
Tax compliance
Collaboration and teamwork