Cracking Interviews for M&A Tax at KPMG
Introduction
For CA Freshers, landing a role in M&A Tax can be a game-changer. It offers exposure to high-stakes transactions and positions you at the forefront of corporate strategy. However, securing such a role requires more than just technical knowledge; it demands a strategic approach to job applications, interview preparation, and networking.
In this blog, we dive into the journey of a successful candidate, CA Srijan Agarwal who cracked a coveted M&A Tax and Private Equity profile at KPMG. From the initial application process to completing multiple rounds of interviews, we’ll uncover insights and strategies that can help you achieve your career aspirations in this challenging domain.
What is M&A Taxation?
Mergers & Acquisitions (M&A) transactions are the processes undertaken when companies decide to join forces and become one single company. M&A Taxa is a specialized field within taxation that deals with the financial, legal, and regulatory implications of corporate transactions. It involves advising businesses on the most tax-efficient ways to structure these transactions while ensuring compliance with tax laws.
Job Role of an M&A Tax Professional
Every M&A deal has tax implications; M&A tax professionals assist with deal negotiations and help manage the entire process from a tax perspective. They guide companies through the possible implications of a potential transaction and structure the transaction to minimise tax liability and ensure compliance.
They also carry out the necessary tax due diligence; input into sales and purchase agreements and financing documents; and complete the tax-related and post-deal activities.
Key Aspects of M&A Tax
- Transactional Structuring: M&A Tax professionals analyze and design deal structures to minimize tax liabilities while maximizing post-transaction value. This involves understanding the implications of direct and indirect taxes, capital gains tax, and tax treaties.
- Due Diligence: Conducting tax due diligence is critical in evaluating potential risks or liabilities associated with the target company’s tax position. This process ensures the buyer understands the tax implications and uncovers hidden liabilities.
- Compliance: Professionals ensure that transactions comply with tax laws and involve preparation and review of tax filings.
- Tax Optimization: M&A tax planning focuses on utilizing exemptions, deductions, and credits under applicable laws. For example, provisions such as Section 47 of the Income Tax Act in India allow exemptions for specific transfers, such as mergers and demergers, under defined conditions.
How to Apply for a M&A Tax Role?
Landing a role in M&A tax requires a proactive and well-structured approach to the job application process. Here are a few ways you can apply for job opportunities which have worked well for CA Srijan Agarwal as mentioned in his interview with us.
Cold Emailing: Cold emailing is one of the best ways to find off-campus job opportunities at any company. Here are some of the benefits of sending cold emails:
- They reach an inbox that users frequently check. Most professionals look at their email inboxes multiple times a day. It is more likely that they are going to read your email instead of listening to a voicemail message.
- They are persistent. You may send follow-up emails along with your original cold email but don’t overdo it.
- They are noninvasive. Cold emails are noninvasive and can help the potential employer feel as though they have the space and option for how and when to respond.
- Replying is quick and easy. Recipients of your cold email can reply quickly and easily.
Online Job Portal: You can also apply through online job portals like LinkedIn, and Naukri. You can start by making connections with HR or other senior professionals in the company.
Social Media Platforms: You can also join relevant WhatsApp or Telegram channels to find out about the vacancy.
Referral: Employee referral is another way to apply not only at KPMG but also at other top companies. For that, you can refer to your friends or acquaintances currently employed in a firm.
Interview Process for KPMG for M&A Tax
For CA Srijan Agarwal, the KPMG interview process involved three rounds. It started with the HR round, then the Manager Round and the final Partner round. All these rounds evaluate your skills and knowledge so that you can contribute to the company’s objective. Now, let’s take a look at the detailed breakdown of KPMG interview rounds:
Round 1: HR Round
It’s usually a screening round to assess how you fit the job profile. In this round, you will have to introduce yourself and share your articleship experience. Based on this, you will be shortlisted for the next round. This round could be telephonic or face-to-face. Some HR interview questions you can expect are:
- Introduce yourself
- Number of attempts taken for your CA Final exam
- Tell me about your articleship experience
- Why are you interested in M&A Tax?
Do thorough research on the job profile: Before appearing for this round, you need to go through the job profile and understand M&A Tax professionals’ operations. Based on that, you must share your concept and exposure on that particular profile.
Three focus areas: In this round, HR generally evaluates three things – communication skills, articleship background and your area of interest.
Round 2: Manager Round or Technical Round
KPMG’s 2nd round interview also starts with a personal introduction. But it mainly focuses on the articleship experience and what knowledge you have gained in your articleship. Here are some common questions that you can expect at the technical round for M&A Tax:
- What do you know about debt?
- Is debt applicable to Goodwill?
- What is GAAR (General Anti-Avoidance Rule)?
- What is the Specific Anti-Avoidance Rule?
- What is capital gain?
- Which type of tax applies to capital gain?
- What is Indexation?
- How can we save on capital gains tax?
Present your articleship right: It’s evident from the questions this technical grilling round is very domain-specific. So, describing your articleship experience precisely is important. If you are applying for the M&A Tax job profile, it should reflect in your articleship experience.
Gain in-depth process knowledge: To deal with the questions in this round, you will have to gain a very in-depth knowledge of the process. For example, if they ask you about debt, you can’t limit yourself to the definition only. You will have to let them know that you know the whole concept. Explaining types of debt, depreciation, and block of assets will help the interviewer understand that the candidate is aware of the concept as a whole.
Round 3: Partner Round
The Partner Round is the final round in the interview process and the interviewer will be someone from the senior managerial level. The partner may also ask you questions that are specific to the role and the job description. It may be similar to the technical round and the duration of the interview depends on the person taking the interview.
Here are some questions that you can expect in this round:
- In Section 47, which capital transfers don’t count?
- What is a Corpus Donation?
- When demerger will not be considered a capital transfer?
- In income tax, when is amalgamation not considered amalgamation?
- What is slump sale under section 50B of the Income-Tax Act? Tell us its provisions.
Things to Remember for the Interview
- Master the Basics: A strong grasp of fundamental tax concepts is essential. Interviewers will often test your understanding of core principles like depreciation, capital gains, and block of assets. Be ready to explain key provisions, such as Section 47: Exemptions for certain transactions like mergers and demergers & Section 54 Series: Capital gains tax exemptions.
- Leverage Articleship Experience: Highlight specific projects or cases where you dealt with taxation. Using examples from your work experience will help reinforce the concepts better.
- Focus on Communication Skills: Practice explaining technical concepts in layman’s terms, as this demonstrates both your understanding and ability to simplify complex information.
Conclusion
Embarking on a career in M&A taxation is a journey filled with opportunities. Securing a role in this domain requires more than just knowledge of tax laws—it demands a proactive mindset and a clear understanding of your strengths.
Remember, each step you take—whether it’s sending out applications, networking with industry professionals, or practising for interviews—brings you closer to your goals. With focus, determination, and the right preparation, the dynamic world of M&A taxation is yours to explore and thrive in.
Join our Getting Interview Ready Workshop now to learn more on interview prep.
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