ADIT Paper 1 Top Tips: 15 Minute Reading Time
ADIT Paper 1 Top Tips: 15 Minute Reading Time
ADIT Paper 1 Top Tips: 15 Minute Reading Time
Paper 1 ‐ Top Tips
Last minute hints and things to remember for your exam!
15 minute reading time
Make sure you use this wisely!
You can write on the exam paper itself, but do not start to type or write anything else as it will look like you are writing
an answer!
Use this time to read through all the questions and then decide on the four you will attempt. You need to answer at
least one of the practical questions in Part B of the paper. You may find you are only happy with three questions – but
you must do four. So, for your final question pick one where you can have a go at saying something basic (even if it is
not your best subject). Don’t forget you can always look up some points in your KVR, or the Model Treaty.
Once you have chosen the four questions then, if you still have some time left, you can start to plan your questions
(by writing on the exam paper – there is usually some space in the margins, for example).
Question planning
The best answers are ones which have structure – so it will help you to plan your answer for a few minutes beforehand.
We would say up to five minutes could be used for planning. You can even jot down your plan – just head it up ‘PLAN’
and make sure you put a line below it – to show when the plan ends and your answer starts.
You need to make sure you have an ‘Introduction’, a ‘Middle Section’ with your analysis, and a ‘Conclusion’ or
‘Summary’ at the end. The examiner thinks that providing an analysis is very important. You can see this in the question
itself – look out for words such as ‘discuss’, ‘analyse’, ‘interpret’, ‘do you agree’, ‘opinion’ etc.
This means you need to provide a description of the rules/ theory in the question, but also provide an assessment of
such rules/ theory. So, after your description you need to consider the pros and cons of the matter, so the advantages
and disadvantages, the positives and negatives. This will then allow you to come up with an opinion/ viewpoint/ show
analysis in your final conclusion. In your conclusion you will probably want to say “on balance I think” or “taking the
above into consideration, I am of the opinion that …”.
The Questions
As you know the Part A questions are theory based. You must answer at least two questions from this part (and you
might answer three, if you decide to only do one practical question).
Hopefully there will be at least two questions on topics that you feel happy with in Part A and can answer. If you find
you are looking for a final question, then remember that you can look issues up in your KVR book. For example, if there
is a question which relates to an article in the OECD Model Treaty that you are perhaps not very familiar with, but you
need a final (fourth) question, you can always use the Model Treaty and the commentary to the Model Treaty (in KVR
or the 2017 Model text) to give you some basic points for your essay.
In addition, your KVR has other materials that you can use to add more detail to your answers – to get more marks.
You need to be typing between 1.5 to 2 sides of A4 to get enough down to pass, which is around 3 to 4 sides of
handwritten pages. So, you probably need to write around 700 words or more. If your answer looks a bit short, then
remember to put in some examples (from the UK or other countries you are familiar with – the KVR book has country
overviews at the start) and some case law if this is relevant – this will get extra marks. You can also use the material in
your KVR to help you add more detail (so maybe the commentary to the Treaty, or a point from one of the other
conventions, such as the OECD/ Council of Europe Administrative Assistance Convention, or the Vienna Convention if
the question is on interpretation). You can now tag your KVR.
You should also try to add in a reference to the BEPS project and the MLI (where this is relevant). There are 15 Action
Points and so it is likely the BEPS project will have at least one action point which is relevant to your discussions.
If the question is on any anti‐avoidance type provision, then in addition you could mention the 2016 EU Anti‐Tax
Avoidance Directive in your conclusion or summary (as this contains five anti‐avoidance provisions, based originally
on the work of the OECD as part of the BEPS project, which have been implemented by the EU Member States). If you
are discussing dispute resolution, the MAP and arbitration, then refer to the EU Dispute Resolution Directive.
If the question is on information exchange, then in addition to the work of the OECD (such as the Common Reporting
Standard (CRS)), in your conclusion don’t forget to bring in the latest EU approach – the EU Directive on Administrative
Cooperation has been amended to make sure it covers exchange per the CRS, but also automatic exchange of tax
rulings, automatic exchange of country‐ by‐country reports, access to money laundering information, and exchange
of information on planning schemes. If you are commenting on the Arm’s Length Principle, then don’t forget the EU
proposals (from Oct 2016) for a CCCTB – a move away from the ALP approach!
So in summary, there are four extra matters you can include to get more marks: examples (from your own and other
jurisdictions); case law (see Appendix 3 in the manual); BEPS Action Points (very likely to find one which is relevant);
and any EU angle – the main EU Directives (re tax) can be found in Appendix 2.
PART B – practical scenarios questions
The key point to note is that in a practical scenario you will need to apply your knowledge of the theory to the facts
provided (in whatever format they provide them to you).
Planning will be important – make sure you give the examiner the format asked for (so letter, memo, report) – but
also an introduction, analysis, and conclusion.
In a practical question you need to state what the theory or rule is first, then you need to apply this theory or rule to
the facts provided (and make it clear this is what you are doing!), then you need to come up with a conclusion (it may
be in the form of advice to the client). If you are given a group or company structure, then consider each transaction
in turn and advise on the different transactions separately (use appropriate headings). An overall comment might be
needed in the conclusion (perhaps if the structure is a tax avoidance arrangement, a comment about anti‐avoidance
provisions would be appropriate).
You must do one of these, so if you don’t like the look of either of the practical questions then you should choose the
one which you think you can say something about, however basic. Give yourself a few minutes to ‘brainstorm’ possible
issues and jot them down. You don’t need to have a perfect answer, so long as you can put down something even if it
is relatively simple – there will always be some basic aspect of the structure/ facts which can be commented on.
It may be the question is on a point that you can look up in the OECD Model Treaty, or in the OECD Transfer Pricing
Guidelines (any transaction between group companies would require a comment about transfer pricing!), or in the
Vienna Convention (on interpretation) – so a point you can find in the material in your KVR / permitted texts. If this is
the case, then use your KVR as it will help you put something down in your answer.
If you stick with a good structure to your essay, and bring in any relevant points on BEPS, or on the EU Anti‐Tax
Avoidance Directive (if relevant) then this could help get you some basic marks (and hopefully enough to get a pass).
Timing
Don’t forget the timing – try to stick to 45 minutes for each question. Write the times down at the beginning, so you
know when you need to move on to the next question. Be careful about leaving enough time for your final (fourth)
question!
If you are running out of time, then as a last resort go to bullet points, to get in as much as possible (bullet points won’t
score as much as fully argued paragraphs, but it would allow you to get some information down quickly).
If you can still put in a conclusion, to close your essay, then do.
Most importantly – GOOD LUCK !