NCM - Project Monitoring

Question 1

Why is NCM Monitoring important for Siemens?

Answer 1

Compliance with tax laws and regulations + efficient claim resolution enhances quality of Siemens financial statements

Question 2

Three Key Documents for NCM, Sales Phase

Answer 2

1) MoU
2) Jointly signed calculation sheet
3) standard contracts

Question 3

NCM onshore profit - check arms length

Answer 3

On a quarterly basis

Question 4

If onshore profit is out of margin range

Answer 4

WPC has to check reasons for deviations, take into account claims + has to prepare documentation if and why the deviating profit of onshore has to remain with RU (2 consecutive quarters)

Question 5

Roles involved in project monitoring

Answer 5

1) WPC
2) Project Managers
3) Steering Committee

Question 6

NCM Dispute Resolution

Answer 6

1) Notification of claim within 30 days
2) Project managers try to agree within 14 days after notification
3) no solution after 14 days: Steering committee within 4 weeks
4) no resolution found in 4 weeks - involvement of senior management

Question 7

True or False - The RU must assume a minimum non-transferable responsibility to demonstrate economic substance

Answer 7

True