PRELIM QUIZ!!
3. Ana, Filipina, died in Syria leaving the following properties:
House and Lot in Syria, P1,000,000
Vacant Lot in Manila, P2,000,000
Shares of stock in domestic corp., 60% of the business is located in the Philippines,
P100,000
Shares of stock in a foreign corp., 70% of the business is loacted in the Philippines,
P200,000
Car in Manila, P500,000
How much is the gross estate?
P2,000,000
P2,500,000
P2,600,000
P3,800,000 – ALL PROPERTY
Explanation: anna is a citizen, her property (real or personal) is included in the
gross estate wherever situated.
10. The following are general rules on situs. Which one is not?
The situs of real property is place or country where it is situated.
The situs of tangible personal property is the place or country where such is actually
located at the time of decedent's death
The situs of intangible personal property is the place or country where such is
actually located at the time of the decedent's death.
The situs of intangible personal property is the domicile or residence of the owner.
EXPLANATION: The situs of intangible personal property is the place or
country where it is exercised regardless of where the corresponding certificate
is stored.
28. Part of the estate left by A are preference share of MERALCO. The shares are
listed and traded in the Philippine Stock Exchange. Which of the following rules of
valuation is correct?
The preference shares will be valued using the arithmetic mean between the
highest and lowest quotation at the date nearest the date of death, if none is
available on the date of death itself.
The preference will be valued based on their book value.
The preference shares will be value based on their par value.
The preference shares will be valued based on their fair market value as determined
by the Commissioner of Internal Revenue
EXPLANATION: THE GIVEN PREFERENCE SHARE IS TRADED AND LISTED
BECAUSE OF THAT The preference shares will be valued using the arithmetic
mean between the highest and lowest quotation at the date nearest the date of
death, if none is available on the date of death itself SHOULD BE USED.
29. Statement 1: The making of a will is strictly a personal act. It cannot be left in
whole or in part of the discretion of a third person, or accomplished through the
instrumentality of an agent or attorney.
Statement 2: The burden of proof that the testator was not of sound mind at the time
of making his dispositions is on the person who opposes the probate of the will; but if
the testator, one month, or less, before making his will was publicly known to be
insane, the person who maintains the validity of the will must prove that the testator
made it during a lucid interval.
Only statement 1 is correct.
Only statement 2 is correct.
Both statements are correct. (26)
Both statements are incorrect.
EXPLANATION: ACCORDING TO ARTICLE 783 OF THE NEW CIVIL CODE The
making of a will is strictly a personal act. It cannot be left in whole or in part of
the discretion of a third person, or accomplished through the instrumentality of
an agent or attorney AND The burden of proof that the testator was not of
sound mind at the time of making his dispositions is on the person who
opposes the probate of the will; but if the testator, one month, or less, before
making his will was publicly known to be insane, the person who maintains the
validity of the will must prove that the testator made it during a lucid interval.
38. Statement 1: Gratuitous transfer is subject to transfer tax.
Statement 2: A donation which takes effect at the time of death of the donor is a
donation mortis causa subject to estate while a donation which takes effect during
the lifetime of both of both the donor and the donee is a donation inter-vivos subject
to donor's tax.
Only statement 1 is correct.
Only statement 2 is correct.
Both statements are correct.
Both statements are incorrect.
EXPLANATION: ACCORDING TO THE NEW CIVIL CODE TRANSFER TAXES
ARE IMPOSED UPON THE GRAUITOUS DISPOSITION OF PRIVATE
PROPERTIES OR RIGHTS THUS, GRATUITOUS TRANSFER IS SUBJECT TO
TRANSFER TAXES. IN ADDITION, GRATUITOUS TRANSFER MAY TAKE
EFFECT AT THE TIME OF THE DEATH OF THE DONOR OR DURING THE
LIFETIME ALSO CALLED DONATION INTER VIVOS.
39. Ana, Filipina, died in Syria leaving the following properties:
House and Lot in Syria, P1,000,000
Vacant Lot in Manila, P2,000,000
Shares of stock in domestic corp., 60% of the business is located in the Philippines,
P100,000
Shares of stock in a foreign corp., 70% of the business is loacted in the Philippines,
P200,000
Car in Manila, P500,000
How much is the gross estate if the rule on reciprocity applies?
P2,000,000
P2,500,000
P2,600,000
P3,800,000
EXPLANATION: INTANGIBLE PROPERTIES WITH SITUS WITHIN THE PHILS
ARE EXCLUDED IN THE DETERMINATION OF GROSS ESTATE IF THERE IS
RECIPROCITY.
44.
Statement 1: A sale is a form of transfer transaction that requires payment of transfer
tax.
Statement 2: Transfer tax accrues at the time of transfer of the decedent's property
or rights to the heir.
Only statement 1 is correct.
Only statement 2 is correct
Both statements are correct.
Both statements are incorrect
EXPLANATION: SALE IS NOT SUBJECT TO TRANSFER TAX AS IF IT THERE IS
NO TRANSFER EXIST ON THE OTHER HAND, TRANSFERTAX ACCRUES
FROM THE MOMENT OF THE DEATH OF THE DECEDENT.
Transfer tax is applicable only to gratuitous transfers.
A sale in general is an onerous transfer, hence not subject to transfer tax.
Transfer tax accrues from the effectivity of the gratuitous transfer.
1. An act whereby a person is permitted, with the formalities prescribed by law, to
control to a certain degree the disposition of his estate, to take effect after his death.
Contract
Trust
Will
Legacy
EXPLANATION:
2. Mortis causa transfer of property is effected:
When the property is received by the heir.
When the court awarded the ownership of property to a particular heir.
Upon the death of the decedent.
Upon payment of estate tax.
4. An executor or administrator, after paying the estate tax, and to escape a future
liability for deficiency estate tax, must secure a written discharge from personal
liability from:
The heirs
The Commissioner of Internal Revenue
The court where the estate was being settled.
Need not secure a written discharge as long as he has a receipt on payment of the
estate tax.
5. Which among the following statements is correct?
Estate taxation is governed by the statute in force at the time of death of the
decedent.
Estate tax accrues as of the death of the decedent.
Succession takes place and the right of the State to tax the privilege to transmit the
estate vests instantly upon death.
All of the above
6. The subject matter or object of transfer taxes is
Right to transmit
Decedent
Properties of the decedent
Beneficiaries
Excise tax
7. A decedent left 10,000 PLDT shares. The shares were traded in the local stock
exchange. At the time of death, the following were available:
Fair market value P400/share
Mean between the highest and lowest quotation P500/share
Book value P350/share
What was the value included in the decedent's gross estate?
P3,500,000
P4,000,000
P5,000,000
Whichever was the highest among the fair market value, mean and book value
EXPLANATION: THE SHARES WERE LISTED AND TRADED SO WE SHOULD
USE ITS FAIR MARKET VALUE AS A GENERAL RULE. LISTED SHARE: FMV
SHALL BE THE ARITHMETIC MEAN IF NONE IS AVAILABLE ON THE DATE OF
DEATH ITSELF, HOWEVER, THERE IS A FAIR MARKET VALUE GIVEN.
8. Which is not a test of situs?
Residence of the debtor in case of accounts receivable.
Place of storage in case of shares of stocks.
Location of depository bank in case of bank deposit.
Place of exercise in case of copyright.
EXPLANATION: WHERE THE INTANGIBLE IS EXERCISED REGARDLESS OF
WHERE THE CORRESPONDING CERTIFICATE IS STORED.
9. The tax imposed on the transfer of property without consideration between two or
more persons who are living at the time the transfer is made.
Donor's tax
Estate tax
Business tax
Income tax
11. A person who inherits specific personal property thru a will:
Devisee
Legatee
Heir
Successor
12. The portion of the decedent's estate which the law reserves to his compulsory
heir is called:
Legitimate (30)
Free portion
Legacy
Bequest
13. Which of the following statements is false?
Transfer tax is
Imposed upon gratuitous transfer of property
Of two kinds: estate tax and donor's tax
Classified as national tax
None of the above
14. Ana, Filipina, died in Syria leaving the following properties:
House and Lot in Syria, P1,000,000
Vacant Lot in Manila, P2,000,000
Shares of stock in domestic corp., 60% of the business is located in the Philippines,
P100,000
Shares of stock in a foreign corp., 70% of the business is loacted in the Philippines,
P200,000
Car in Manila, P500,000
How much is the gross estate if Ana is a non-resident alien?
P2,000,000
P2,500,000
P2,600,000
P3,800,000
EXPLANATION: ONLY THE PROPERTY WITH THE SITUS WITHIN THE
PHILIPPINES SHOULD BE CONSIDERED IN GROSS ESTATE.
15. A person who inherits specific real property thru a will:
Devisee
Legatee
Heir
Successor
16. The taxpayer in estate tax is:
The decedent
The estate as a juridical entity
The heirs or succession
The administrator or executor
Taxpayer shall pertain only to a person, natural or juridical
17. The following are the elements of succession, except:
Decedent
Estate
Heir
Executor
18. Statement 1: For estate tax computation, real estate shall be valued at fair
market value at the date of death of the decedent.
Statement 2: If zonal value is available at date of death, and this is higher than the
fair market value per assessor's listing of values, then the amount to be reported in
the gross estate is the zonal value.
Only statement 1 is correct.
Only statement 2 is correct.
Both statement are correct.
Both statement are incorrect.
EXPLANATION:
19. The personal properties of a non-resident, not citizen of the Philippines, would
not be included in the gross estate if:
The intangible personal property in the Philippines
The intangible personal property is in the Philippines and the reciprocity
clause of the estate tax law applies
The tangible personal property is in the Philippines
The personal property is hares of stock of a domestic corporation 90% of whose
business is in the Philippines
20. Which of the following is incorrect?
Estate tax is an excise tax. It is a tax on the right to transfer property at death and on
certain transfers which are made by law the equivalent of testamentary disposition.
Excise tax is an ad valorem tax. It is assessed on the net value of the estate
transferred.
Upon effectivity of the TRAIN Law, estate tax is a proportional tax. It is no longer
based on a graduated tax rate but to a fixed rate of 6% on the net taxable estate of a
decedent.
Estate tax is a specific tax.
EXPLANATION: ESTATE TAX IS AN EXCISE TAX.
21. Which of the following is not compulsory heir?
Legitimate children and descendants, with respect to their legitimate or ascendants
In default of letter "a", legitimate parents or ascendants, with respect to their
legitimate children or descendants
Widow or widower
Relatives by affinity
22. Statement 1: The rights to the succession are transmitted from the moment of
death of the decedent, notwithstanding the postponement of the actual possession or
enjoyment of the estate by the beneficiary.
Statement 2: The heirs succeed immediately to all the property of the deceased
ancestor at the moment of death as completely as if the ancestor had executed and
delivered to them a deed for the same before his death.
Only statement 1 is correct.
Only statement 2 is correct.
Both statements are correct.
Both statements are incorrect.
23. Is a written will which must be entirely written, dated and signed by the hand of
the testator himself. If subject to no other form and it may be made in or out of the
Philippines and need not be witnessed.
Ordinary will
Notarial will
Holographic will
Codicil
24. Succession which results from the designation of an heir, made a will executed
in the form prescribed by law is known as:
Legal or intestate succession
Testamentary succession
Mixed succession
Ordinary succession
25. The persons prohibited by law to make a will are:
I. Those below 18 years of age.
II. Those who are not of sound mind at the time of its execution.
I only
II only
Both I and II
Neither I nor II
26. Who has the personal liability to pay estate tax?
The decedent
The estate as a juridical entity
The heirs or successors
The administrator or executor
15
27. All of the following are considered intangible in the Philippines, except:
Franchise which must be exercised in the Philippines
Shares, obligations or bonds issued by any corporation or sociedad anonima
organized or constituted in the Philippines in accordance with its laws
Shares, obligations or bonds by any foreign corporation 75% of the business
of which is located in the Philippines
Shares, obligations of bonds issued by any foreign corporation if such shares,
obligations or bonds have acquired a business situs in the Philippines.
EXPLANATION: ACCORDING TO SECTION 104 OF THE TAX CODE Shares,
obligations or bonds by any foreign corporation MUST BE 85% of the business
of which is located in the Philippines.
30. Pedro died on March 1, 2018. The following data were available in connection
with the property.
Assessed value, six (6) months before death, P2,500,000
Fair market value at time of filing estate tax return on February 28, 2019, P3,000,000
Zonal value, March 1, 2018, P2,000,000
What would be the value of the piece of land in the gross estate?
P2,000,000
P2,500,000
P3,000,000
P5,000,000
EXPLANATION: Whichever is higher between FMV and zonal value at the time
of death of the decedent.
31. Which of the following item is considered situated outside the Philippines?
Franchise in the name of the decedent which is exercised in the Philippines
Shares of stock holdings of decedent in a foreign corporation whose business is 90%
done in the Philippines
Bond certificate issued by a domestic corporation owned by a non-resident decedent
Foreign currency deposited in bank outside the Philippines
32. Which property is valued using the book value?
Bonds being traded in the bond market
Annuity
Shares of stock not traded in the stock exchange
Usufruct
EXPLANATION: WHENEVER THE COMMON SHARES ARE NOT LISTED OR
TRADED BOOK VALUE SHOULD BE USED .
33. Inheritance received is construed as unequal distribution of wealth resulting to
the imposition of estate tax describes:
redistribution of wealth theory
benefit-received theory
state partnership theory
ability to pay theory
34. Statement 1: As a general rule, the situs of tangible personal property is the
place or country where such is actually located at the time of the decedent's death.
Statement 2: The rule that the situs of intangible personal property is the domicile or
residence of the owner does not apply when the property has a situs elsewhere.
Only statement 1 is correct.
Only statement 2 is correct
Both statements are correct
Both statements are incorrect
35. Which of the following could legally effect transfer of properties through
succession?
I. By virtue of a will
Ii. By operations of law
III. By onerous transfer
I only
I and II only (23) The question is specifically pertaining through succession
only. A gratuitous transfer.
I and III only
I, II and III
36. Statement 1: Decedent is the general term applied to the person whose property
is transmitted through succession, whether or not he left a will.
Statement 2: An heir is a person called to succession either by provision of a will or
by operation of law.
Only statement 1 is correct.
Only statement 2 is correct.
Both statements are correct.
Both statements are incorrect.
37. It is a mode of acquisition by virtue of which, the property, rights and obligations,
to the extent of the value of the inheritance, of a person are transmitted through his
death to another either by his will or by operation of law.
Succession
Donation
Prescription
Exchanges
40. One of the following is subject to estate tax on properties situated within the
Philippines only
resident citizen
resident alien
nonresident citizen
nonresident alien (35)
41. Justification for the imposition of transfer tax
Redistribution of wealth theory
Benefit received theory
State partnership theory
All of the above
42. Which statement is false about succession:
The successor inherits all the transmissible property of a decedent including his
liabilities.
The successor can be made liable for the obligations of the decedent beyond
the value of the asset he received.
In succession, fruits and credits maturing after the death of the decedent pass to the
heirs even if they were not subjected to estate tax.
In succession, the successor can refuse the inheritance.
EXPLANATION: THE OBLIGATIONS OF successor is limited only to the value
of the asset he received
43. Shares are not deemed property within the Philippines when
The shares are issued by a domestic corporation.
The shares are issued by a foreign corporation with no business situs in the
Philippines.
The shares are issued by a foreign corporation with 85% business in the Philippines.
The shares are issued by a corporation organized under Philippine laws.
45. Estate tax is
A property tax because it is imposed on the property transmitted by the decedent to
his heirs.
An indirect tax because the burden of paying the tax is shifted on the executor or any
of the heirs of the decdent.
An excise tax because the object of which is the shifting of economic benefits
and enjoyment of property from the dead of the living.
A poll tax because it is also imposed on residents of the Philippines whether Filipino
citizens or not.
46. Pedro died on Nov. 2, 2018, leaving the following properties:
Common stocks of Sunchamp Corporation (2,000 shares) - listed in the Philippine
Stock Exchange (highest - P40; lowest - P39)
Common stocks of AgriNurture Corporation (1,500 shares) - not listed in the stock
exchange. Cost - P50/share; book value - P45 per share.
Preferred stocks of Greenergy Inc. (3,000 shares) - not listed in the stock exchange.
Cost - P70 per share; book value - P60/share; par value - P50/share
Car (cost - P600,000; book value P350,000; market value - P400,000)
Real properties (zonal value - P120,000; assessed value - P72,000)
The gross estate of Pedro is:
816,500
817,500
824,000
846,500
EXPLANATION: SUNCHAMP (40/39)= 39.5*2000= 79000
AGRINURTURE (45*1500)= 67500
GREENERGY (3000*50)= 150000
CAR 400000
REAL PROPERTY = 120000
TOTAL: 816500
LISTED COMMON STOCKS- ARITHMETIC MEAN
UNLISTED COMMON SHARE- BOOK VALUE
UNLISTED PREFERENCE SHARES- PAR VALUE
REAL PROPERTY- HIGHER BETWEEN FMV AND ZONAL VALUE
PERSONAL PROPERTY- FMV AT THE TIME OF THE DECEDENT;S DEATH
47. It is a well settled rule that estate taxation is governed by the statute in force at
the time of:
Creation of the last will testament or death of the death in case of intestate
succession
Death of the decedent
Filing of estate tax return
Either letter b or c whichever will result to higher estate tax liability
48. Estate tax accrues from:
The moment of death of the decedent
The moment the notice of death is filed
The moment the estate tax return is filed
The moment the properties are delivered to the heirs
Succession takes palce and the right of the state to tax the privilege to transmit the
estate vest instantly upon death
49. The tax imposed on the right to transmit property at death is known as:
Donor's tax
Estate tax
Business tax
Income tax
50. Which of the following is valid will?
That which reduces the legitime of compulsory heirs
That which increase the share of one heir without impairing the legitime of the
other heirs.
That which transfer the legitime of one heir to the other heir
That which impair the legitime of compulsory heir.
3.
Ana, Filipina, died in Syria leaving the following properties:
House and Lot in Syria, P1,000,000
Vacant Lot in Manila, P2,000,000
Shares of stock in domestic corp., 60% of the business is located in the
Philippines, P100,000
Shares of stock in a foreign corp., 70% of the business is loacted in the
Philippines, P200,000
Car in Manila, P500,000
How much is the gross estate?
P2,000,000
P2,500,000
P2,600,000
P3,800,000
10.
The following are general rules on situs. Which one is not?
The situs of real property is place or country where it is situated.
The situs of tangible personal property is the place or country where such is
actually located at the time of decedent's death
The situs of intangible personal property is the place or country where
such is actually located at the time of the decedent's death.
The situs of intangible personal property is the domicile or residence of the
owner.
28.
Part of the estate left by A are preference share of MERALCO. The shares
are listed and traded in the Philippine Stock Exchange. Which of the following
rules of valuation is correct?
The preference shares will be valued using the arithmetic mean between
the highest and lowest quotation at the date nearest the date of death, if
none is available on the date of death itself.
The preference will be valued based on their book value.
The preference shares will be value based on their par value.
The preference shares will be valued based on their fair market value as
determined by the Commissioner of Internal Revenue
29.
Statement 1: The making of a will is strictly a personal act. It cannot be left in
whole or in part of the discretion of a third person, or accomplished through
the instrumentality of an agent or attorney.
Statement 2: The burden of proof that the testator was not of sound mind at
the time of making his dispositions is on the person who opposes the probate
of the will; but if the testator, one month, or less, before making his will was
publicly known to be insane, the person who maintains the validity of the will
must prove that the testator made it during a lucid interval.
Only statement 1 is correct.
Only statement 2 is correct.
Both statements are correct.
Both statements are incorrect.
38.
Statement 1: Gratuitous transfer is subject to transfer tax.
Statement 2: A donation which takes effect at the time of death of the donor is
a donation mortis causa subject to estate while a donation which takes effect
during the lifetime of both of both the donor and the donee is a donation intervivos subject to donor's tax.
Only statement 1 is correct.
Only statement 2 is correct.
Both statements are correct.
Both statements are incorrect.
39.
Ana, Filipina, died in Syria leaving the following properties:
House and Lot in Syria, P1,000,000
Vacant Lot in Manila, P2,000,000
Shares of stock in domestic corp., 60% of the business is located in the
Philippines, P100,000
Shares of stock in a foreign corp., 70% of the business is loacted in the
Philippines, P200,000
Car in Manila, P500,000
How much is the gross estate if the rule on reciprocity applies?
P2,000,000
P2,500,000
P2,600,000
P3,800,000
44.
Statement 1: A sale is a form of transfer transaction that requires payment of
transfer tax.
Statement 2: Transfer tax accrues at the time of transfer of the decedent's
property or rights to the heir.
Only statement 1 is correct.
Only statement 2 is correct
Both statements are correct.
Both statements are incorrect
1.
An act whereby a person is permitted, with the formalities prescribed by law,
to control to a certain degree the disposition of his estate, to take effect after
his death.
Contract
Trust
Will (24)
Legacy
2.
Mortis causa transfer of property is effected:
When the property is received by the heir.
When the court awarded the ownership of property to a particular heir.
Upon the death of the decedent.
Upon payment of estate tax.
4.
An executor or administrator, after paying the estate tax, and to escape a
future liability for deficiency estate tax, must secure a written discharge from
personal liability from:
The heirs
The Commissioner of Internal Revenue
The court where the estate was being settled.
Need not secure a written discharge as long as he has a receipt on payment
of the estate tax.
5.
Which among the following statements is correct?
Estate taxation is governed by the statute in force at the time of death of the
decedent.
Estate tax accrues as of the death of the decedent.
Succession takes place and the right of the State to tax the privilege to
transmit the estate vests instantly upon death.
All of the above
6.
The subject matter or object of transfer taxes is
Right to transmit
Decedent
Properties of the decedent
Beneficiaries
7.
A decedent left 10,000 PLDT shares. The shares were traded in the local
stock exchange. At the time of death, the following were available:
Fair market value P400/share
Mean between the highest and lowest quotation P500/share
Book value P350/share
What was the value included in the decedent's gross estate?
P3,500,000
P4,000,000
P5,000,000
Whichever was the highest among the fair market value, mean and book
value
8.
Which is not a test of situs?
Residence of the debtor in case of accounts receivable.
Place of storage in case of shares of stocks.
Location of depository bank in case of bank deposit.
Place of exercise in case of copyright.
9.
The tax imposed on the transfer of property without consideration between
two or more persons who are living at the time the transfer is made.
Donor's tax
Estate tax
Business tax
Income tax
11.
A person who inherits specific personal property thru a will:
Devisee
Legatee
Heir
Successor
12.
The portion of the decedent's estate which the law reserves to his compulsory
heir is called:
Legitimate
Free portion
Legacy
Bequest
13.
Which of the following statements is false? Transfer tax is
Imposed upon gratuitous transfer of property
Of two kinds: estate tax and donor's tax
Classified as national tax
None of the above
14.
Ana, Filipina, died in Syria leaving the following properties:
House and Lot in Syria, P1,000,000
Vacant Lot in Manila, P2,000,000
Shares of stock in domestic corp., 60% of the business is located in the
Philippines, P100,000
Shares of stock in a foreign corp., 70% of the business is loacted in the
Philippines, P200,000
Car in Manila, P500,000
How much is the gross estate if Ana is a non-resident alien?
P2,000,000
P2,500,000
P2,600,000
P3,800,000
15.
A person who inherits specific real property thru a will:
Devisee
Legatee
Heir
Successor
16.
The taxpayer in estate tax is:
The decedent
The estate as a juridical entity
The heirs or succession
The administrator or executor
17.
The following are the elements of succession, except:
Decedent
Estate
Heir
Executor
18.
Statement 1: For estate tax computation, real estate shall be valued at fair
market value at the date of death of the decedent.
Statement 2: If zonal value is available at date of death, and this is higher
than the fair market value per assessor's listing of values, then the amount to
be reported in the gross estate is the zonal value.
Only statement 1 is correct.
Only statement 2 is correct.
Both statement are correct.
Both statement are incorrect.
19.
The personal properties of a non-resident, not citizen of the Philippines, would
not be included in the gross estate if:
The intangible personal property in the Philippines
The intangible personal property is in the Philippines and the reciprocity
clause of the estate tax law applies
The tangible personal property is in the Philippines
The personal property is hares of stock of a domestic corporation 90% of
whose business is in the Philippines
20.
Which of the following is incorrect?
Estate tax is an excise tax. It is a tax on the right to transfer property at death
and on certain transfers which are made by law the equivalent of
testamentary disposition.
Excise tax is an ad valorem tax. It is assessed on the net value of the estate
transferred.
Upon effectivity of the TRAIN Law, estate tax is a proportional tax. It is no
longer based on a graduated tax rate but to a fixed rate of 6% on the net
taxable estate of a decedent.
Estate tax is a specific tax.
21.
Which of the following is not compulsory heir?
Legitimate children and descendants, with respect to their legitimate or
ascendants
In default of letter "a", legitimate parents or ascendants, with respect to their
legitimate children or descendants
Widow or widower
Relatives by affinity
22.
Statement 1: The rights to the succession are transmitted from the moment of
death of the decedent, notwithstanding the postponement of the actual
possession or enjoyment of the estate by the beneficiary.
Statement 2: The heirs succeed immediately to all the property of the
deceased ancestor at the moment of death as completely as if the ancestor
had executed and delivered to them a deed for the same before his death.
Only statement 1 is correct.
Only statement 2 is correct.
Both statements are correct.
Both statements are incorrect.
23.
Is a written will which must be entirely written, dated and signed by the hand
of the testator himself. If subject to no other form and it may be made in or out
of the Philippines and need not be witnessed.
Ordinary will
Notarial will
Holographic will
Codicil
24.
Succession which results from the designation of an heir, made i a will
executed in the form prescribed by law is known as:
Legal or intestate succession
Testamentary succession
Mixed succession
Ordinary succession
25.
The persons prohibited by law to make a will are:
I. Those below 18 years of age.
II. Those who are not of sound mind at the time of its execution.
I only
II only
Both I and II
Neither I nor II
26.
Who has the personal liability to pay estate tax?
The decedent
The estate as a juridical entity
The heirs or successors
The administrator or executor
27.
All of the following are considered intangible in the Philippines, except:
Franchise which must be exercised in the Philippines
Shares, obligations or bonds issued by any corporation or sociedad anonima
organized or constituted in the Philippines in accordance with its laws
Shares, obligations or bonds by any foreign corporation 75% of the
business of which is located in the Philippines
Shares, obligations of bonds issued by any foreign corporation if such shares,
obligations or bonds have acquired a business situs in the Philippines.
30.
Pedro died on March 1, 2018. The following data were available in connection
with the property.
Assessed value, six (6) months before death, P2,500,000
Fair market value at time of filing estate tax return on February 28, 2019,
P3,000,000
Zonal value, March 1, 2018, P2,000,000
What would be the value of the piece of land in the gross estate?
P2,000,000
P2,500,000
P3,000,000
P5,000,000
31.
Which of the following item is considered situated outside the Philippines?
Franchise in the name of the decedent which is exercised in the Philippines
Shares of stock holdings of decedent in a foreign corporation whose business
is 90% done in the Philippines
Bond certificate issued by a domestic corporation owned by a non-resident
decedent
Foreign currency deposited in bank outside the Philippines
32.
Which property is valued using the book value?
Bonds being traded in the bond market
Annuity
Shares of stock not traded in the stock exchange
Usufruct
33.
Inheritance received is construed as unequal distribution of wealth resulting to
the imposition of estate tax describes:
redistribution of wealth theory
benefit-received theory
state partnership theory
ability to pay theory
34.
Statement 1: As a general rule, the situs of tangible personal property is the
place or country where such is actually located at the time of the decedent's
death.
Statement 2: The rule that the situs of intangible personal property is the
domicile or residence of the owner does not apply when the property has a
situs elsewhere.
Only statement 1 is correct.
Only statement 2 is correct
Both statements are correct
Both statements are incorrect
35.
Which of the following could legally effect transfer of properties through
succession?
I. By virtue of a will
Ii. By operations of law
III. By onerous transfer
I only
I and II only
I and III only
I, II and III
36.
Statement 1: Decedent is the general term applied to the person whose
property is transmitted through succession, whether or not he left a will.
Statement 2: An heir is a person called to succession either by provision of a
will or by operation of law.
Only statement 1 is correct.
Only statement 2 is correct.
Both statements are correct.
Both statements are incorrect.
37.
It is a mode of acquisition by virtue of which, the property, rights and
obligations, to the extent of the value of the inheritance, of a person are
transmitted through his death to another either by his will or by operation of
law.
Succession (20)
Donation
Prescription
Exchanges
40.
One of the following is subject to estate tax on properties situated within the
Philippines only
resident citizen
resident alien
nonresident citizen
nonresident alien
41.
Justification for the imposition of transfer tax
Redistribution of wealth theory
Benefit received theory
State partnership theory
All of the above
42.
Which statement is false about succession:
The successor inherits all the transmissible property of a decedent including
his liabilities.
The successor can be made liable for the obligations of the decedent
beyond the value of the asset he received. (22) the amount of obligation
shall not exceed the aggaragte values of properties and rights to be
inherited.
In succession, fruits and credits maturing after the death of the decedent pass
to the heirs even if they were not subjected to estate tax.
In succession, the successor can refuse the inheritance.
43.
Shares are not deemed property within the Philippines when
The shares are issued by a domestic corporation.
The shares are issued by a foreign corporation with no business situs in the
Philippines.
The shares are issued by a foreign corporation with 85% business in the
Philippines.
The shares are issued by a corporation organized under Philippine laws.
45.
Estate tax is
A property tax because it is imposed on the property transmitted by the
decedent to his heirs.
An indirect tax because the burden of paying the tax is shifted on the executor
or any of the heirs of the decdent.
An excise tax because the object of which is the shifting of economic
benefits and enjoyment of property from the dead of the living.
A poll tax because it is also imposed on residents of the Philippines whether
Filipino citizens or not.
46.
Pedro died on Nov. 2, 2018, leaving the following properties:





Common stocks of Sunchamp Corporation (2,000 shares) - listed in the
Philippine Stock Exchange (highest - P40; lowest - P39)
Common stocks of AgriNurture Corporation (1,500 shares) - not listed
in the stock exchange. Cost - P50/share; book value - P45 per share.
Preferred stocks of Greenergy Inc. (3,000 shares) - not listed in the
stock exchange. Cost - P70 per share; book value - P60/share; par value P50/share
Car (cost - P600,000; book value P350,000; market value - P400,000)
Real properties (zonal value - P120,000; assessed value - P72,000)
The gross estate of Pedro is:
816,500
817,500
824,000
846,500
47.
It is a well settled rule that estate taxation is governed by the statute in force
at the time of:
Creation of the last will testament or death of the death in case of intestate
succession
Death of the decedent
Filing of estate tax return
Either letter b or c whichever will result to higher estate tax liability
48.
Estate tax accrues from:
The moment of death of the decedent
The moment the notice of death is filed
The moment the estate tax return is filed
The moment the properties are delivered to the heirs
49.
The tax imposed on the right to transmit property at death is known as:
Donor's tax
Estate tax
Business tax
Income tax
50.
Which of the following is valid will?
That which reduces the legitime of compulsory heirs
That which increase the share of one heir without impairing the legitime of the
other heirs.
That which transfer the legitime of one heir to the other heir
That which impair the legitime of compulsory heir.
6.
In 2016, a married, nonresident citizen decedent has the following common
properties, obligations, and expenses
Real property, PH P4M
Real property, US P5M
Funeral Expenses, P250K
Judicial Expenses, P150K
Unpaid Taxes, P50K
Medical Expenses, P650K
The real property in th PH includes the family home valued at P1.5M. How
much is the taxable net estate?
P6.35M
P3.05M
P2.05M
P2.3M
Explanation: Because the only real property included is the only located in the
Philippines which is 4M less funeral, judicial expenses and unpaid taxes
7.
Lolo Sot, 95 years old, was diagnosed of various ailments on January 1,
2018. Motivated by thought of death, he decided to disposed all his properties
to his children and relatives. He executed a last will and testament disposing
all his properties in the Philippines to his children. On the same day, he made
donations inter-vivos to his other relatives as to his properties in the United
States. Lolo Sot died a month after disposing all his properties. Should the
properties donated by Lolo Sot to his other relatives be included in his gross
estate upon his death?
No, because they were not his properties anymore at the time of death.
Yes, because the donations were donations morties cause and should
be governed by the rules on estate taxation. (60)
No, if the donor's tax had been paid already on the donations.
No, because they were not transfers in contemplation of death, since the
donations were not simultaneous with the execution of te last will and
testament.
11.
In filing the estate tax return of a decedent who died prior to the effectivity of
the TRAIN LAw, a CPA certificate is required when:
Gross estate exceeds P2,000,000
Gross estate exceeds P5,000,000
Gross estate exceeds P10,000,000
Gross estate reaches P2,000,000
Explanation: because that is the requirement before the train law has been
approved
14.
The following are transactions and acquisitions exempt from transfer tax,
except
Transmission from the first heir or donee in favor of another beneficiary in
accordance with the desire of the predecessor.
Transmission or delivery of the inheritance or legacy by the fiduciary heir or
legatee to the fideicommissary.
The merger of usufruct in the owner of the naked title.
All bequests, devises, legacies or transfers to social welfare, cultural
and charitable institutions (71)
15.
Sarah, a resident of China and a Chinese citizen died last July 4, 2017 leaving
the following properties:
Land in Davao, P2M
Rest house in China, P1M
Jewelries received from Leni, a week before her death, P500K
Family Home, P1.5M
Car, P800K
The descendants of Sarah claimed the following deductions:
Funeral Expenses, P300K
Claims against insolvent persons, P500K
Amount received under RA4917, P1M
Judicial Expenses, P100K
Medical Expenses in curred from Sep 2016 to July 4, 2017, P200K
Family Home, P1.5M
Standard Deductions, P1.2M
Total ELITe to be deducted from the gross estate
P300K
P604,911
P690,911
P800K
17.
Following are properties in the gross estate with their fair market value:
House and lot, family home Quezon City, P1,500,000
Deposit in the foreign branch of a domestic bank, P500,000
Shares of stock issued by a domestic corporation, certificate kept in the US,
P1,000,000
Pieces of jewelry, P800,000
Receivable, debtor in Cebu, P200,000
If the decedent was non-resident alien and there is reciprocity, property
excluded from gross estate is valued at
P4,000,000
P1,700,000 (54)
P700,000
P200,000
Explanation: because in terms of computing gross estate only House and lot,
family home Quezon City and Pieces of jewelry, must be included
19.
A non-resident alien left the following properties at the time of his death:
A. Bank deposit, Canada
B. Bank deposit, BDO-Manila
C. Car in Quezon City
D. Investment in bonds, PLDT
E. Investment in stocks, IBM, USA
F. House and lot, USA
The country of the non-resident alien decedent does not impose a transfer or
death tax of any character with respect to intangible personal property of
citizens of the Philippines not residing in that foreign country. Assuming the
decedent is a resident alien, and his country does not imposed transfer taxes
to Filipino not residing therein, the Philippine gross estate should include:
All the properties above (56)
Properties B, C and D
Property C only
Properties A and C
24.
Statement 1: Pedro died giving Juan the power to appoint a person who will
inherit his house and lot. Juan, however can only choose among Ana, Lorna
and Fe. Juan decided to transfer the property to Fe through the former's will.
The transfer from Juan to Fe is subject to estate tax.
Statement 2: During A's lifetime, he decided to give B as gift his (A) car
subject to the condition that if B does not become a CPA within 3 years, A
shall revoke the transfer. In the second year however, A died. The car should
form part of A's gross estate.
Only statement 1 is correct
Only statement 2 is correct (70)
Both statements are correct
Both statements are incorrect.
27.
Sarah, a resident of China and a Chinese citizen died last July 4, 2017 leaving
the following properties:
Land in Davao, P2M
Rest house in China, P1M
Jewelries received from Leni, a week before her death, P500K
Family Home, P1.5M
Car, P800K
The descendants of Sarah claimed the following deductions:
Funeral Expenses, P300K
Claims against insolvent persons, P500K
Amount received under RA4917, P1M
Judicial Expenses, P100K
Medical Expenses in curred from Sep 2016 to July 4, 2017, P200K
Family Home, P1.5M
Standard Deductions, P1.2M
The gross estate is
P4.8M
P5.3M
P5.8M
P6.3M
Explanation: because Land in Davao, Jewelries received from Leni, a week
before her death, Family Home, and car must be included in gross estate
29.
Aside from our professor in taxaion as being cute he is as well ______
hardworking
34.
A decedent who maintains a bank account died in March 12, 2018. Which of
the following statements is correct?
Statement 1: If a bank has knowledge of the death of a person, who
maintained a bank account alone, or jointly with another, it shall allow the
withdrawal from said deposit account, subject to a final withholding tax of 6%
of the amount to be withdrawn, provided, that the withdrawal shall only be
made within one year from the date of said decedent.
Statement 2: In all cases, the final tax withheld shall not be refunded, or
credited on the tax due, on the net taxable estate of the decedent.
Only statement 1 is correct
Only statement 2 is correct
Both statements are correct
Both statements are incorrect
36.
An estate tax return is not necessary in the following instance
Donation of P50,000 cash
Transfer of Motor Vehicle valued at P130,000
Both a and b
Neither a nor b
Explanation: because donation is subject to transfer taxes
39.
Bonifacio, head of the family died on January 15, 2018, leaving the following
properties and obligations:
Cash in bank,50%, donated mortis causa tp Natl Govt; 50% to QC
govt,P3,000,000
House and lot in Makati, F. Home, P15,000,000
Personal Properties, P15,000,000
Farm Lot, P8,250,000
Claim against an insolvent debtor, P2,250,000
Transfer in contemplation of death(gratuitous), P15,000,000
Transfer passing under SPA, P750,000
DEDUCTIONS CLAIMED:
Funeral Expenses, P5,750,000
Judicial Expenses, P675,000
Donation mortis causa to QC Govt, P1,500,000
Unpaid mortgage on the farm lot, P750,000
Medical Expenses (included in the funeral expenses incurred within the 1 year
period with receipts), P2,250,000
The farm lost was inherited 5 1/2 years by the decedent before his death with
a value then of P5,750,000 and a mortgage indebtedness of P1,500,000
The taxable net estate os
P26,720,000
P37,500,000
P41,500,000
P50,500,000
40.
The following information were from the estate of a married citizen decedent
who died on June 2017:
Property:
Family Home, P1.2M
Domestic shares inherited 6 years ago during marriage, P600K
Bank deposit, representing dividend earned during marriage, P100K
Expenses:
Funeral expenses, P100K
Judicial, P50K
Medical, P150K
The net taxable estate of the decedent is
P600K
P575K
P500K
P475K
48.
Sarah, a resident of China and a Chinese citizen died last July 4, 2017 leaving
the following properties:
Land in Davao, P2M
Rest house in China, P1M
Jewelries received from Leni, a week before her death, P500K
Family Home, P1.5M
Car, P800K
The descendants of Sarah claimed the following deductions:
Funeral Expenses, P300K
Claims against insolvent persons, P500K
Amount received under RA4917, P1M
Judicial Expenses, P100K
Medical Expenses in curred from Sep 2016 to July 4, 2017, P200K
Family Home, P1.5M
Standard Deductions, P1.2M
The net taxable estate is
P1,854,795
P2,049,884
P4,000,000
P5,164,384
56.
What is your professor’s age?
26
57.
If the decedent died before 2018, the estate tax return should be filed
At the time of death
Within 30 days after death
Within six months after death
Within one (1) year after death
76.
The fruits received during marriage from gratuitous transfer will be classified
as:
ACoP - Community; CPG - Conjugal
ACoP - Exclusive; CPG - Exclusive
ACoP - Community; CPG - Exclusive
ACoP - Exclusive; CPG – Conjugal (101)
79.
Vlad died on October 20, 2018. During his lifetime, upon knowing that he had
Stage 4 cancer, sold his Lamborghini car to his son for P4,000,000. The fair
market value of the car at the time of sale is P3,000,000 while it is already
valued at P5,000,000 at the time of death. If the consideration is fictitious, how
much will form part of gross estate?
P1,000,000
P2,000,000
P5,000,000 (74)
nil
83.
Teh Pok died on November 20, 2018. Some of the properties he left are the
following:
Purchase-Land,Acquired on 7/3/14, FMV on 7/3/14 P500,000, FMV at date of
death, P350,000
Donated-Car,Donated on 10/2/17, FMV on 10/2/17 P800,000, FMV at date of
death, P980,000
Other information:
a. The gross estate of the decedent amounts to P3,000,000.
b. The car was mortgage for P50,000 when it was acquired and Teh Pok paid
the same before he died.
c. The allowable deductions totaled P325,000, which includes judicial
expenses of P30,000 and funeral expenses of P150,000.
Vanishing deduction isP581,000
P571,000
P648,783
P637,617
96.
A NRA died in 2018 with the following data:
PH - GE, P14.2M, AD (excl SD), P6.4M; ET, P0.00
US - GE, P4.4M, AD (excl SD), P2.2M; ET, P150K
How much is the estate tax payable in the Philippines assuming the decedent
is NRA?
P150,000
P168,000
P300,000
P438,000
98.
Properties received from gratuitous transfer during marriage where the donor
or testator expressly provides that it shall form art of the common property of
the spouses shall be classified as:
ACoP - Community; CPG - Conjugal
ACoP - Exclusive; CPG - Exclusive
ACoP - Community; CPG - Exclusive
ACoP - Exclusive; CPG - Conjugal
100.
In filing the estate tax return under the TRAIN Law, a CPA certificate is
required when:
Gross estate exceeds P2,000,000
Gross estate exceeds P5,000,000
Gross estate exceeds P10,000,000
Gross estate reaches P2,000,000
1.
Statement 1: Estate tax credit refers to the taxpayer's right to deduct from the
tax due the amount of tax it has paid to a foreign country.
Statement 2: Estate Tax credit could be claimed as a deduction if such taxes
pertain to properties which are included in the gross estate for PH estate tax
computation
Only statement 1 is correct.
Only statement 2 is correct
Both statement are correct
Both statement are incorrect.
2.
Statement 1: In the absence of marriage settlements executed before the
marriage, the property relationship between husband and wife shall be
governed by local custom and by the provision of law respectively.
Statement 2: Claims against insolvent persons may be charged against
exclusive property
Only statement 1 is correct
Only statement 2 is correct (88)
Both statements are correct
Both statements are incorrect
3.
Under the law, the property relationship between husband and wife shall be
governed in what order?
I. By marriage settlements executed before the marriage.
II. By the provision of this Code
III. By the local custom.
I, II, III
I,III, II
II, III, I
III, II, I
4.
Which of the following is exclusive property under the system of conjugal
partnership of gains?
Property before marriage
Inheritance during marriage
Property acquired during marriage out of exclusive money
All of the above
5.
Statement 1: If an extension for payment of estate tax is granted, the
Commissioner of his duly authorized representative may require the executor,
or administrator, or beneficiary, as the case may be, to furnish a bond in such
amount, not exceeding double the amount of the tax.
Statement 2: Any amount paid after the statutory due date of the estate tax,
but within the extension period, shall be subject to interest but not to
surcharge.
Only statement 1 is correct.
Only statement 2 is correct.
Both statements are correct
Both statements are incorrect.
8.
If the decedent died on or after January 1, 2018, the estate tax return should
be filed.
At the time of death
Within 30 days after death
Within six months after death
Within on (1) year after death
9.
Amounts receivable by the estate of the deceased, his executor or
administrator as an insurance under policy taken by the decedent upon his
own life is:
Excluded from the gross estate
Part of the gross estate whether the beneficiary is revocable or
irrevocable (77)
Part of the gross estate if the beneficiary is revocable
Part of the gross estate if the beneficiary is irrevocable
10.
The fruits on properties owned by the spouses before and brought into the
marriage shall be classified as:
ACoP - Community; CPG - Conjugal
ACoP - Exclusive; CPG - Exclusive
ACoP - Community; CPG - Exclusive
ACoP - Exclusive; CPG - Conjugal
12.
The gross estate of a decedent who was married at the time of death will be
composed of:
His capital property, the wife's paraphernal property and the common property
His capital property and the common property (87)
Common property
His capital property
13.
Proceeds of life insurance where the beneficiary of the decedent is not his
estate, executor or administrator is:
Part of gross income if the beneficiary is revocable
Part of gross income regardless whether the beneficiary is revocable or
irrevocable
Not part of gross estate if the beneficiary is irrevocable
Part of gross estate regardless whether the beneficiary is revocable
16.
Which of the following is not a characteristics of donation mortis causa?
The transfer to the donee is irrevocable while donor is alive.
There is no conveyance of title or ownership to the donee before the death of
the donor.
The transferor retains the full or naked ownership and control of the property
while alive.
The transfer should be void if the donor should survive the donee.
18.
Statement 1: Aguinaldo devised in his will a piece of land; naked title to
Bonifacio and usufruct to Rizal as long as Rizal lives, thereafter to Bonifacio.
The transmission from Aguinaldo to Bonifacio and Rizal is subject to estate
tax but the merger of the usufruct and the naked title to Bonifacio upon the
death of Rizal is exempt.
Statement 2: Erap devised in his will real property to his brother Fidel who is
entrusted with the obligation to preserve and transmit the property to JDV, a
son of Fidel, when JDV becomes of age. The transmission from Fidel to his
son JDV is ubject to tax.
Only statement 1 is correct. (67)
Only statement 2 is correct.
Both statements are correct.
Both statements are incorrect.
20.
A citizen-decendent died in 2018 with the following data:
PH - GE, P14.2M, AD (excl SD), P6.4M; ET, P0.00
US - GE, P4.4M, AD (excl SD), P2.2M; ET, P150K
How much is the estate tax payable in the Philippines assuming the decedent
is not-resident citizen?
P132,000
P150,000
P168,000
P300,000
21.
The Commissioner, on meritorious cases, may extend the time for payment of
estate tax:
In case the estate is settled judicially - 5 years; In case the estate is settled
extra-judicially - 5 years
In case the estate is settled judicially - 2 years; In case the estate is settled
extra-judicially - 2 years
In case the estate is settled judicially - 5 years; In case the estate is
settled extra-judicially - 2 years
In case the estate is settled judicially - 2 years; In case the estate is settled
extra-judicially - 5 years
22.
One of the following donations is not included as part of gross estate
Revocable transfers
Transfers with reservation of certain rights
Transfer under special power of appointment
Transfer in contemplation of death
23.
One of the following is not a content of the statement certified to by a CPA:
Itemized assets of the decedent with their corresponding gross value at the
time of his death or in case of non-resident alien of that part of his gross
estate situated in the Philippines
Itemized deductions from gross estate
The amount of tax due whether paid or still due and outstanding
Certified copy of partition
25.
Can the estate tax be paid in installment?
Yes, in case the available cash of the estate is not sufficient to pay its
estate tax liability.
Yes, at the option of the heirs with corresponding interest charges.
No tax is the lifeblood of the State, hence collection cannot be delayed under
any circumstance.
None of the above
26.
In the absence of marriage settlement, or when the regime agreed upon was
void, the property relations of the spouses who were married on or after
August 3, 1998 would be:
Absolute community of property
Conjugal partnership of gains
Absolute separation of property
Either absolute community of property or conjugal partnership of gains
28.
Which of the following statements is incorrect?
A general power of appointment authorizes the donee of the power to appoint
any person to possess or enjoy the property.
A general power of appointment makes the donee of the power the owner of
the property.
The appointed property passing under a general power of appointment
is not includible in the gross estate of the donee-decedent.
None of the above.
30.
What are you going to practice?
Academe
Government
Public Practice
Commerce and Industry
31.
The following are exclusive property of each spouse. Which one is not?
That which each acquires during the marriage by lucrative title.
That which is purchased with the exclusive money of either spouse.
That which is acquired by exchange with other property belonging to the
spouses.
That which is brought to the marriage as his or her own.
32.
Which of the following is exclusive property under the system of absolute
community of property?
Property before the nmarriage
Inheritance during marriage
Property acquired during marriage
All of the above
33.
To prevent undue avoidance of tax, inter-vivos diposition in contemplation of
death is subject to
Donor;s tax
Estate tax
Income tax
Excise tax
35.
What would you like to tell your professor in tax 2?
Stay cute and kind
37.
Vanishing deduction on properties received from gratuitous transfer before
marriage shall be classified as:
ACoP - Community; CPG - Conjugal
ACoP - Exclusive; CPG - Exclusive
ACoP - Community; CPG - Exclusive
ACoP - Exclusive; CPG - Conjugal
38.
One of the following is a conjugal property of the spouses
That which is brought to the marriage as his or her own
That which each acquires during the marriage by inheritance
The fruits of an exclusive property (92)
That which is purchased with the exclusive property of the wife.
41.
Following are deemed transfers in contemplation of death, except
While still alive, the decedent donated property where the donation will take
effect at the time of his death.
The decedent transferred a property in the regular course of the
business operation.
The decedent donated a property with the condition that he/she will enjoy the
fruits of such while he/she is still alive.
The decedent transferred a property to take effect after his/her death
42.
Sarah, a resident of China and a Chinese citizen died last July 4, 2017 leaving
the following properties:
Land in Davao, P2M
Rest house in China, P1M
Jewelries received from Leni, a week before her death, P500K
Family Home, P1.5M
Car, P800K
The descendants of Sarah claimed the following deductions:
Funeral Expenses, P300K
Claims against insolvent persons, P500K
Amount received under RA4917, P1M
Judicial Expenses, P100K
Medical Expenses in curred from Sep 2016 to July 4, 2017, P200K
Family Home, P1.5M
Standard Deductions, P1.2M
Deductible vanishing deduction shall be
P0
P335,205
P445,205
P545,205
43.
Which of the following statements is correct?
There shall not be transferred to any new owner in the books of any
corporation, sociedad anonima, partnership, business, or industry organized
or established in the Philippines andy share, obligation, bond or right by way
of gift inter-vivos or mortis causa, legacy or inheritance, unless an eCAR is
issued by the Commissioner or his duly authorized representative.
In instances where the deposit accounts have been duly included in the gross
estate of the decedent and the estate tax due thereon paid, the executor,
administrator, or any of the legal heirs shall present the eCAR issued for the
said estate prior to withdrawing from the bank deposit account.
The withdrawal described in letter b shall no longer be suject to the 6%
withholding tax by the bank.
All of the above
44.
The following information were from the estate of a married citizen decedent
who died on June 2017:
Property:
Family Home, P1.2M
Domestic shares inherited 6 years ago during marriage, P600K
Bank deposit, representing dividend earned during marriage, P100K
Expenses:
Funeral expenses, P100K
Judicial, P50K
Medical, P150K
The 1/2 share of the surviving spouse is
P600K
P575K
P500K
P300K
45.
Property owned by the spouses before and brought into the marriage shall be
classified as
ACoP - Community; CPG - Conjugal
ACoP - Exclusive; CPG - Exclusive
ACoP - Community; CPG - Exclusive
ACoP - Exclusive; CPG - Conjugal
46.
Which is not an exclusive property of a spouse?
That which is brought to the marriage as his or her own.
That which each acquired during the marriage by gratuitous title.
That which is acquired by right of redemption.
That which is purchased with the spouses common fund
47.
Who shall file the estate tax return?
Executor, or administrator, or any of the legal heirs
Creditors of the decedent
Personal secretary of the decedent
Debtors of the decedent
49.
Which of the following shall be included in the decedent's gross estate?
I. Share in common properties of the surviving spouse
II. Capital or paraphernal property of the surviving spouse
III. Properties outside the Philippines of a non-resident citizen decedent
IV. Intangible personal property in the Philippines of a non-resident alien
I only
I and III only
I, III and IV only
I, II, III and IV
50.
Extension for the payment of the estate tax shall be allowed on the ground of
undue hardship upon the estate or any of the heirs
negligence
intentional disregard of rules and regulations
fraud
51.
The following information were from the estate of a married citizen decedent
who died on June 2017:
Property:
Family Home, P1.2M
Domestic shares inherited 6 years ago during marriage, P600K
Bank deposit, representing dividend earned during marriage, P100K
Expenses:
Funeral expenses, P100K
Judicial, P50K
Medical, P150K
Under CPG, gross conjugal property is
P1.3M
P1.2M
P800K
P600K
52.
A decedent died on Nov. 1, 2017 leaving a family home composed of the
following: Conjugal house worth P800K and land which he exclusively owned
valued at P400K. He also owns a vacation house in Baguio worth P700K. The
deductible amount of family home is:
P800K
P1M
P1.2M
P1.9M
53.
Which of the following transfer is not included in the gross estate?
Transfer with reservation of certain rights
Transfer for insufficient consideration
Transfer for an adequate and full consideration in money or money's
worth (69)
Transfer in contemplation of death.
54.
Which of the following statements is incorrect?
Marriage settlements may fix the property relations of spouses during the
marriage within the limits provided by the family code.
The purpose of system of property relationship is to distinguish a conjugal or
community property from an exclusive property.
Modification or amendments in the marriage settlements may only be
allowed after the celebration of the marriage. (82)
None of the above.
55.
When an estate is settled extra-judicially, the estate tax return may be filed
and the estate tax paid
By any of the heirs, with a right of reimbursement from the other heirs
Only by the heir with authority from the other heirs
By each of the heirs, the payment being for his distributive share in the estate
tax.
The eldest of the heirs and closest in relationship to the decedent.
58.
Which of the following statements is incorrect?
In a revocable transfer, the decedent during his lifetime may revoke, alter,
amend, or terminate the terms of enjoyment or ownership of the property.
A revocable transfer is always includible in the gross estate of the decedenttransferor.
A revocable transfer shall be included in the gross estate of the decedenrtransferor even though the power to revoke was not exercised.
The power of the decedent-transferor to revoke terms may be exercised
just once.
59.
In case of a resident decedent, the administrator of executor shall register the
estate of the decedent and secure new TIN from the
Office of the Commissioner.
RDO where the administrator or executor is registered.
RDO where the decedent was domiciled at the time of his death
Duly authorized treasurer of the city or municipality where the decedent is
domiciled at the time of his death.
60.
A decedent died in 2018 leaving properties he inherited 2 1/2 years ago which
had fair market value of P8,000,000 at the time of his death (P6,500,000 at
the time of inheritance, and unpaid mortgage of P500,000 paid by the present
decedent). After inheritance, the decedent mortgages the property for
P500,000 and paid the same before his death. Other properties in his gross
estate had fair market value of P10,000,000. The total expenses, losses,
indebtedness, taxes and transfer for public purpose amounted to P3,000,000.
How much is the vanishing deduction?
P2,000,000
P2,750,000
P3,000,000
P3,120,000
61.
Statement 1: Any amount paid beyond the statutory due date of the tax, but
within the extension period, shall be subject to interest but not to surcharge.
Statement 2: No extension for payment of tax shall be granted where the
request for extension is by reason of negligence, intentional disregard of rules
and regulations, or fraud on the part of the taxpayer.
Only statement 1 is correct
Only statement 2 is correct
Both statements are correct
Both statements are incorrect.
62.
Properties received from gratuitous transfer during marriage shall be
classified as:
ACoP - Community; CPG - Conjugal
ACoP - Exclusive; CPG - Exclusive
ACoP - Community; CPG - Exclusive
ACoP - Exclusive; CPG - Conjugal
63.
A non-resident alien left the following properties at the time of his death:
A. Bank deposit, Canada
B. Bank deposit, BDO-Manila
C. Car in Quezon City
D. Investment in bonds, PLDT
E. Investment in stocks, IBM, USA
F. House and lot, USA
The country of the non-resident alien decedent does not impose a transfer or
death tax of any character with respect to intangible personal property of
citizens of the Philippines not residing in that foreign country. What properties
will be included in the Philippine gross estate of the non-resident alient
decedent?
All the properties above
Properties B, C and D
Property C only (55)
Properties A and C
64.
Vlad died on October 20, 2018. During his lifetime, upon knowing that he had
Stage 4 cancer, sold his Lamborghini car to his son for P4,000,000. The fair
market value of the car at the time of sale is P3,000,000 while it is already
valued at P5,000,000 at the time of death. The amount that will be added to
gross estate is
P0 (73)
P500,000
P800,000
P1,200,000
65.
I will be a Certified Public Accountant.
Certain
Contemplating
Negative
66.
Statement: The Commissioner or any of the Revenue Officer authorized by
him pursuant to the tax code shall have the authority to grant, in meritorious
cases, a reasonable extension not exceeding thirty (30) days for filing the
return.
Statement 2: The application for the extension of time to file the estate tax
return must be filed with the RDO where the estate is required to secure its
TIN and file tax return of the estate.
Only statement 1 is correct
Only statement 2 is correct
Both statements are correct
Both statements are incorrect
67.
In the absence of a marriage settlement, or when the regime agreed upon
was void, the property relations of the spouses who were married on or after
August 3, 1988 would be:
Absolute community of property
Conjugal partnership of gains
Absolute separation of property
Either absolute community of property or conjugal partnership of gains
68.
A resident died September 3, 2017. An administrator was appointed on
September 15, 2017. The inventory taking of the decedent's properties was
completed on October 10, 2017.
When should the estate tax return be filed?
Nov 3, 2017
Mar 3, 2018
Mar 15, 2018
Sep 2, 2018
69.
One of the following is not a community property of the spouses
Property inherited by the husband before marriage
Winnings in gambling
Fruits of property inherited during the marriage (C)
Fruits of property inherited before the marriage
70.
Statement 1: A special power of appointment authorizes the donee of the
power to appoint only from among a designated class or group of persons
other than himself.
Statement 2: The donee-decedent of a special power of appointment only
holds the property in trust, hence, the property shall form part of the doneedecedent;s gross estate.
Only statement 1 is correct (63)
Only statement 2 is correct
Both statements are correct
Both statements are incorrect
71.
Exclusive property of the husband is called?
income
capital
paraphernal
equity
72.
Which of the following is not included in the gross estate?
Revocable transfer where the consideration is not sufficient.
Revocable transfer where the power of revocation was not exercised.
Proceeds of life insurance where the beneficiary designated is the estate and
the designation is irrevocable.
Proceeds of life insurance where the beneficiary designated is the
mother and the designation is irrevocable
73.
Would you like to pursue graduate studies in the future?
Yes
No
Not yet decided
74.
Which is correct?
The person who creates the power is the donor of the power (donordecedent)
The person who is given the right to exercise the power of appointment is the
donee (donee-decedent)
The property being transferred and the subject of the power of appointment is
the appointed property.
All of the above. (64)
75.
What other certifications will you take?
Certified Management Accountant
Certified Financial Analyst
Certified Internal Auditor
Certified Fraud Examiner
Certified Information System Auditor
77.
On the belief that Pedro is about to die, he sold to his daughter a parcel of
land valued at P3,000,000 for the same amount. One (1) year later, Pedro
died of a car accident. At that time, the property had already a value of
P3,500,000. For Philippine estate tax purposes, the amount includible in the
gross estate is
P500,000
P3,000,000
P3,500,000
Nil (72)
78.
Which of the following is not correct?
When a compulsory heir is given by will less than his legitime, the provisions
of the will should be modified in such a way that he will receive his legitime.
The CIR may examine the bank deposit of a decedent for the purpose of
determining his gross estate even if the estate did not request for a
compromise on the ground of financial incapacity.
The sharing of heirs in testamentary succession must satisfy the rules on
legitime.
If an extension to pay the estate tax is granted, the Commissioner or his
duly authorized representative may require the administrator, or
executor, or beneficiary, to furnish a bond in such amount exceeding
double the amount of the tax and with such sureties as the
Commissioner deems necessary, conditioned upon the payment of said
tax in accordance with the terms of the extension.
80.
Statement 1: Estate tax credit refers to the taxpayer's right to deduct from the
tax due the amount of tax it has paid to a foreign country.
Statement 2: Estate Tax credit could be claimed as a deduction if such taxes
pertain to properties which are included in the gross estate for PH estate tax
computation.
Only statement 1 is correct.
Only statement 2 is correct.
Both statements are correct
Both statements are incorrect.
81.
Statement 1: The power of appointment is "general" when the power of
appointment authorizes the donee of the power to appoint only from a
restricted or designated class of persons other than himself.
Statement 2: Special power of appointment exists when the power of
appointment authorizes the donee of the power to appoint any person he
pleases.
Only statement 1 is correct.
Only statement 2 is correct.
Both statements are correct.
Both statements are incorrect. (66)
82.
Mr. Bombo, Filipino died on April 10, 2016 with the following date:
PH - Gross Estate, P1,875,000; Allowable Deductions, P1,575,000; Estate
Tax Paid, P0.00
CH - Gross Estate,300,000; Allowable Deductions, P150,000; Estate Tax
Paid, P3,750
JP - Gross Estate, P450,000; Allowable Deductions, P525,000; Estate Tax
Paid, P0.00
US- Gross Estate, P600,000; Allowable Deductions, P225,000; Estate Tax
Paid, P18,000
The estate tax payable in the PH is
P9,000
P13,500
P13,250
P14,000
84.
A died leaving a house and lot to B on March 31, 2012 which was questioned
by C and it is under litigation but, subsequently, the parties executed an extrajudicial settlement. The last day for filing the estate tax return is:
April 30, 2013
April 30, 2016
September 30, 2012
October 30, 2012
85.
I ____ you.
love
86.
Which of the following is not correct regarding the estate of a decedent who
died before 2018?
No judge shall order a distribution of any part of the estate to an heir without a
certification from the BIR that the tax has been paid.
A bank shall not allow the co-depositor of a deceased to withdraw from the
joint bank account without a certification from the BIR that the tax has been
paid.
No Register of Deeds shall transfer to any heir the title of a decedent to real
property without certification from the BIR that the tax has been paid.
None of the above
87.
When are you going to be a CPA?
October 2022
May 2023
October 2023
May 2024
88.
In computing the estate tax, which of the following shall not be allowed tax
credit for taxes paid abroad?
Resident alien decedent
Non-resident alien decedent
Resident Citizen decedent
Non-resident citizen decedent
89.
Proceeds of life insurance where the beneficiary of the decedent is not his
estate, executor or administrator is
Part of gross income if the beneficiary is revocable
Part of gross income regardless whether the beneficiary is revocable or
irrevocable
Not part of gross estate if the beneficiary is irrevocable
Part of gross estate regardless whether the beneficiary is revocable or
irrevocable.
90.
Pedro, decedent, owns a property valued at P1,500,000 at the time of his
death. The said property sold was sold by Pedro during his lifetime to Juan for
P700,000 when its value was P1,200,000. It was agreed by Pedro and Juan
that the former will enjoy the income of the property as long as he lives. If the
fair market value of the property at the time of death is only P600,000, how
much will form part of gross estate?
P0
P500,000
P800,000 (75)
P1,200,000
91.
Which of the following is exclusive property under the system of conjugal
partnership of gains?
Property before marriage
Inheritance during marriage
Property acquired during marriage out of exclusive money
All of the above
92.
Statement 1: Conjugal partnership of gains, absolute community of property
and complete separation are all valid regimes that may govern property
relations between spouses,
Statement 2: Under the regime of absolute community of property, the
husband and the wife place in a common fund the proceeds, products, fruits
and income from their separate property and those acquired by either or both
spouses through their efforts or by chance.
Only statement 1 is correct
Only statement 2 is correct
Both statements are correct
Both statements are incorrect
93.
Pedro, decedent, owns a property valued at P1,500,000 at the time of his
death. The said property sold was sold by Pedro during his lifetime to Juan for
P700,000 when its value was P1,200,000. It was agreed by Pedro and Juan
that the former will enjoy the income of the property as long as he lives. For
the Philippine estate tax purposes, how much will be included in determining
gross estate?
P0
P500,000
P800,000 (75)
P1,200,000
94.
Personal property for personal and exclusive use shall be classified as:
ACoP - Community; CPG - Conjugal
ACoP - Exclusive; CPG – Exclusive (102)
ACoP - Community; CPG - Exclusive
ACoP - Exclusive; CPG - Conjugal
95.
Exclusive property of the wife is called?
income
capital
paraphernal
equity
97.
Proceeds of life insurance to the extent of the amount receivable by the estate
of the deceased, his executor or administrator under policies taken out by the
decedent upon his own life shall be
I. Part of the gross estate irrespective of whether or not the insured retained
the power of revocation
II. Not part of the gross estate if the beneficiary is irrevocable
III. Part of the gross income if the designation of the beneficiary is revocable
IV. Not part of the gross income irrespective of whether or not the insured
retained the power of revocation
I and II
I and III
I and IV
only I
99.
Do you find your instructor cute?
Yes
He is absolutely cute.
That stament is factual.
No doubt, he is cute