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Mr. Legazpi sold his residential lot with a fair value of P 6,000,000 for only P 3,000,000. The property was acquired for P 500,000 last year 2014. Compute for the amount subject for donor's tax. A. P 0 B. P 3,000,000 C. P 2, 750,000 D. P 2, 500, 000

A. P 0

Which is a purpose or objective for levying the estate tax? 1. Estate tax is a more effective agent for bringing about a more equitable distribution of wealth. 2. It is the most appropriate and effective method for taxingthe "privilege" which the decedent enjoys of controlling the disposition at death of property accumulated during life. 3 It is the only method of collecting the share which is properly due to the State as a "partner" in the accumulation of property which was Which is a purpose or objective for levying the estate tax?1. Estate tax is a more effective agent for bringing about a more equitable distribution of wealth. 2. It is the most appropriate and effective method for taxingthe "privilege" which the decedent enjoys of controlling the disposition at death of property accumulated during life. 3 It is the only method of collecting the share which is properly due to the State as a "partner" in the accumulation of property which was a. 1,2 and 3 b. 3 0nly c. 1 only d. 2 0nly

a. 1,2 and 3

Mario made the following donations/transactions: Date Donations/Transactions January 1 Gave his sister who is getting married a watch that is recently purchased for P150,000. March 1 Sold his personal car valued at P500,000 for P200,000 to brother April 1 Sold his residential house to his brother for P1,500,000. The fair market value of the residential house at the time of sale was P2,000,000. June 1 Donated sports equipment P100,000 to Binan City, Laguna for public use and a bicycle valued at P50,000 to his father who is already a senior citizen. How much was the donor's tax for the gift made on January 1? a. 0 b. P30,000 c. None of the choices d. P20,000

a. 0

Which subject to donor's tax? 1. Gifts made to or for the use of the National Government or any entity created by any of its agencies which is not conducted for profit, or to any political subdivision of the said Government; and 2. Gifts in favor of an educational and/or charitable, religious, cultural or social welfare corporation, institution, accredited nongovernment organization, trust or philanthropic organization or research institution or organization a. 1 and 2 b. Neither 1 nor 2 c. 2 only d. 1 only

a. 1 and 2

A donation was made by Mr. Angeles, a citizen and resident of the Philippines, to Brisney Co., of property in a foreign country with a fair market You Answered value of P300,000. Foreign donor's tax of P7,500 was paid. There was a donation earlier in the year of P150,000 cash to Mr. Charlie, a legitimate child. How much was the donor's tax on the donation to Brisney Co. before foreign donor's tax credit? a. 12,000 b. 3,000 c. 0 d. 27,000

a. 12,000

Mr. Bean, a citizen and resident of the Philippines, made the following donations on February 14, 2019:To Mr. Carlos, a legitimate child, on account of marriage on the same day, property in Malaysia, which paid the Malaysian donor's tax of P52,000 and with a fair market value of P610,000.To Mr. Dimalabanan, a friend, ordinary donation of property in the Philippines, subject to a mortgage of P60,000, which was assumed by the donee, and fair market value equals 160,000 How much was the tax credit allowed? a. 23,712.67 b. 52,000 c. 26,805.63 d. 21,691.27

a. 23,712.67

The following are donations with defect at execution except a. Donation by a person who has legal title to the property. b. Oral or written donation of real property or intangible property. c. Donation refused by the done. d. All of the above are donations with defect at execution.

a. Donation by a person who has legal title to the property.

Mr. Riano made the following gifts in 2018: Phils. USA UK Italy Gross gift P750,000 P500,000 P250,000 P500,000 Deductions 250,000 200,000 150,000 150,000 Tax paid — 25,000 12,000 10,000 The donor's tax payable is: a. P 30,800 b. P 26,000 c. P 25,600 d. P 33,520

a. P 30,800

Harry had the following donations/transactions: Date Donations January 1 Donated a P150,000 diamond ring to her sister who was getting married in March 15 of the same year. March 1 Sold her personal car valued at P500,000 for P200,000 to his uncle. April 1 Sold his residential house to his brother for P1,500,000. The fair market value of the residential house at the time of sale was P2,000,000. June 1 Donated P100,000 to Binan City for public purpose and P50,000 to her brother who graduated from De La Salle University. How much is the deduction in March 1 a. 500,000 b. 300,000 c. 200,000 d. 0 a. P75,000 b. P150,000 c. P10,000 d. 0

d. 0

b. P150,000

Baby Len, a non-resident alien died in Syria leaving the following properties: House and Lot in Syria 1,000,000 Vacant Lot in Manila 2,000,000 Shares of stock in a domestic corp., 60% of the business is located in the Philippines 100,000 Shares of stock in a foreign corp., 70% of the business is located in the Philippines 200,000 Car in Manila 500,000 how much is the gross estate? a. P2,600,000 b. P3,800.000 c. P2,500,000 d. P2,000,000

b. P3,800.000

Under conjugal partnership of gains, which of the following is an exclusive property? a. Properties acquired through occupation such as fishing or hunting b. Properties acquired during the marriage by gratuitous title c. Properties acquired by chance, such as winning from gambling or betting d. Property acquired during the marriage using common fund for the exclusive use of one of the spouses

b. Properties acquired during the marriage by gratuitous title

The amount of all bequests, legacies, devises or transfers to or for the use of the Government of the Republic of the Philippines or any political subdivision thereof, for exclusively public purposes. a. Family home b. Transfers for public use c. Property previously taxed d. Vanishing deduction

b. Transfers for public use

Statement I - Estate tax returns showing a gross value exceeding Five million pesos (P5,000,000) shall be supported with a statement duly certified to by a Certified Public Accountant. Statement II - Estate tax returns showing a gross value exceeding Twomillion pesos (P2,000,000) shall be supported with a statement duly certified to by a certified Public Accountant Under the TRAIN Law a. False; False b. True; False c. True; True d. False; True

b. True; False

Statement 1 - Husband and wife are considered as separate and distinct taxpayer's for purposes of the donor's tax. Statement 2 - if what was donated is a conjugal or community property and only the husband signed the deed of donation, there is only one donor for donor's tax purposes, without prejudice to the right of the wife to question the validity of the donation without her consent pursuant to the pertinent provisions of the Civil Code of the Philippines and the Family Code of the Philippines a. True; False b. True; True c. False; False d. False; True

b. True; True

Statement 1 - Republic Act No. 10963 pertains to the "Tax Reform for Acceleration and Inclusion (TRAIN) Law" Statement 2 - The net estate of every decedent, whether resident or non-resident of the Philippines, as determined in accordance with the NIRC, shall be subject to an estate tax at the rate of six percent (6%) a. True; False b. True; True c. False; True d. False; False

b. True; True

Statement 1 - Unlisted common shares are valued based on their book value while unlisted preferred shares are valued at par value. Statement 2 - In determining the book value of common shares, appraisal surplus shall not be considered as well as the value assigned to preferred shares, if there are any. a. False; True b. True; True c. False; False d. True; False

b. True; True

Statement I - As a general rule, the estate tax imposed under the NIRC shall be paid at the time the return is filed by the executor, administrator or the heirs. Statement II - The estate tax imposed under the NIRC shall be paid by the executor or administrator before the delivery of the distributive share in the inheritance to any heir or beneficiary. a. False; False b. True; True c. False; True d. True; Falase

b. True; True

Who shall file the estate tax return? a. executor, b. administrator c. any of the legal heirs d. Commissioner of the BIR a. d only b. a or b or c c. a or b d. c only

b. a or b or c

The community properties shall consist of all property owned by the spouses at the time of the celebration of the marriage or acquired thereafter. One of the following, however, is not a community property. a. Properties inherited by the spouses before the marriage b. Properties acquired by the spouses as donation during the marriage c. Properties acquired using the salary earned by either spouse before the marriage a. c only b. b only c. a,b and c d. a only

b. b only

Which of the following must be done by the donor in order to be exempt from donor's tax and to claim full deduction of the donation given to qualified-donee institutions duly accredited? a. The donor engaged in business shall give a notice of donation on every donation worth at least Fifty Thousand Pesos (P250,000) to the Revenue District Office (RDO) which has jurisdiction over his place of business mustwithin thirty (30) days after receipt of the qualified donee institution's duly issued Certificate of Donation. b. The donor shall attach to the said Notice of Donation the donee institution's duly issued Certificate of Donation which shall state that not more than thirty percent (30%) of the said donation/gifts for the taxable year shall be used by such accredited non-stock, non-profit corporation/NGO institution (qualified-donee institution) for administration purposes pursuant to the provisions of Section 101(A)(3) and (B)(2) of the NIRC. a. neither a nor b b. b only c. and b d. a only

b. b only

Which transaction is subject to donor's tax? a. Property, other than real property referred to in Section 24(D), is transferred for less than an adequate and full consideration in money or money's worth. b. Sale, exchange, or other transfer of property made in the ordinary course of business. c. Real property referred to in Section 24(D), is transferred for less than an adequate and full consideration in money or money's worth. d. Sale, exchange, or other transfer of property made which is a bona fide, at arm's length, and free from any donative intent. a. a,b,c and d b. c and d c. b only d. a only

b. c and d

Statement 1 - Estate taxation is governed by the statute in force at the time of death of the decedent. Statement 2 - The estate tax accrues as of the death of the decedent and the accrual of the tax is distinct from the obligation to pay the same. Answers: a. S1 -False, S2 -False b. S1 -True, S2 -False c. S1 -True, S2 -True d. S1 -False, S2 - True

c. S1 -True, S2 -True

c. 0

Analyze the following:I - In any cases, void donations are not subject to donor's tax.II - Every donation between the spouses during the marriage shall be void. You Answered As such, you can conclude that: a. Only I is correct b. Only II is correct c. Both are correct d. Both are incorrect e. None of the choices

c. Both are correct

The following data were taken from the estate of Oslo: § Claims against Juan (insolvent), P 100,000, fully uncollectible. § Claims against Manuel (insolvent), P 200,000, 50% collectible. § Claims against a person who absconded, P 300,000. §Based on the data provided, how much should be deducted from Pedro's gross estate? a. P 600,000 b. P 500,000 c. P 200,000 d. 0

c. P 200,000

Rody, a resident citizen made the following donations. a. To Mar, a land worth P 450,000 in Manila. b. To Leni, jewelry worth P 100,000 in Japan. c. To Miriam, PLDT shares amounting to P 150,000. d. To Jojo, a building in Italy P 1,600,000 mortgaged for P 50,000 assumed by the donee. e. To Allan, land in Davao worth P 300,000. f. To Antonio, P 300,000 cash, PNB New York g. P 200,000 receivable to Joy, 50% condoned by Rody Rody also transferred the following properties: Selling Price FMV Car, Makati P 200,000 P 300,000 Car, Malaysia 300,000 200,000 Rest House, Tagaytay 1,000,000 2,000,000 Rest House, Malaysia 1,500,000 2,500,000 How much is the gross gift? a. P5,200,000 b. P4,200,000 c. P4,100,000 d. P3,200,000

c. P4,100,000

Statement 1 - Estate tax is a tax on the privilege to transfer property upon one's death and the privilege to receive property from the deceased. Statement 2 - Estate tax is paid by the estate represented by the administrator or executor or paid paid by the recipients of the properties of the estate. a. False; True b. False; False c. True; True d. True; False

c. True; True

Statement 1 - Only donations made on or after January 1, 2018 shall be subject to the donor's tax rate provided under the TRAIN Law as implemented by these Regulations Statement 2 - The computation of the donor's tax is on a cumulative basis over a period of one calendar year. a. False; False b. True; False c. True; True d. False; True

c. True; True

Statement I - Any amount received by the heirs from the decedent's employer as a consequence of the death of the decedent-employee in accordance with Republic Act No. 4917 is allowed as a deduction provided that the amount of the separation benefit is included as part of the gross estate of the decedent. Statement II - After deducting the allowable deductions appertaining to the conjugal or community properties included in the gross estate, the share of the surviving spouse must be removed to ensure that only the decedent's interest in the estate is taxed. a. False; False b. False; True c. True; True d. True; False

c. True; True

When the Commissioner finds that the payment of the estate tax or of any part thereof would impose undue hardship upon the estate or any of the heirs, he may extend the time for payment of such tax or any part thereof not to exceed I - five (5) years in case the estate is settled through the courts, II - two (2) years in case the estate is settled extrajudicially. a. False; True b. True; False c. True; True d. False; False

c. True; True

Which of the following transfers is considered in contemplation of death? a. Transfers to reduce annual income tax liability. b. Transfer to relieve taxpayer from burden of management. c. Transfers to provide independent income for dependents. d. Transfers where the transferor "retained for his life or for any period which does not in fact end before his death the possession or enjoyment of, or the right to the income from the property. a. b and c b. d only c. c and d d. a only

c. c and d

During their last anniversary, the wife bought an expensive coat for her husband using salary she earned during the marriage. Shortly thereafter, the husband died. For Philippine estate tax purposes, the expensive coat shall be classified as: a. exclusion from the gross estate. b. exclusive property of the wife-surviving spouse. c. exclusive property of the husband-decedent. d. common property

c. exclusive property of the husband-decedent.

d. 0

Under the TRAIN Law, Statement 1 Standard deduction is a deduction in the amount of One Million Pesos (P1,000,000) and shall be allowed without need of substantiation. Statement 2 The full amount of P5,000,000 shall be allowed as deduction for the benefit of the non-resident alien decedent. a. True; True b. False; True c. True; False d. False; False

d. False; False

Statement 1 In Claims against the estate. the word "claims" is generally construed to mean debts or demands of a pecuniary nature which could have been enforced by the deceased in his lifetime and could have been reduced to simple money judgements. Statement 2 In Claims against the estate. The indebtedness must not have been condoned by the creditor or the action to collect from the decedent must not have prescribed. a. True; True b. True; False c. False; False d. False; True

d. False; True

Which is not subject to donor's tax? a. Renunciation by the surviving spouse of his/her share in the conjugal partnership or absolute community after the dissolution of the marriage in favor of the heirs of the deceased spouse or any other person/s. b. Property, other than a real property that has been subjected to the final capital gains tax, is transferred for less than an adequate and full consideration in money or money's worth. c. Specific renunciation by an heir, including the surviving spouse, of his/her share in the hereditary estate left by the decedent d. General renunciation by an heir, including the surviving spouse, of his/her share in the hereditary estate left by the decedent

d. General renunciation by an heir, including the surviving spouse, of his/her share in the hereditary estate left by the decedent

Baby Em, a non-resident alien died in Syria leaving the following properties: House and Lot in Syria 1,000,000 Vacant Lot in Manila 2,000,000 Shares of stock in a domestic corp., 60% of the business is located in the Philippines 100,000 Shares of stock in a foreign corp., 70% of the business is located in the Philippines 200,000 Car in Manila 500,000 assuming the rule on reciprocity applies, how much is the gross estate? a. P3,800.000 b. P2,000,000 c. P2,600,000 d. P2,500,000

d. P2,500,000

Ping, is a non-resident alien, and there is reciprocity law, made the following donations. a. To Mar, a land worth P 450,000 in Manila. b. To Leni, jewelry worth P 100,000 in Japan. c. To Baby M, PLDT shares amounting to P 150,000. d. To Maney, a building in Italy P 1,600,000 mortgaged for P 50,000 assumed by the donee. e. To Sara, land in Davao worth P 300,000. f. To Antonio, P 300,000 cash, PNB New York g. P 200,000 receivable to Joy, 50% condoned by Rody Ping also transferred the following properties: Selling Price FMV Car, Makati P 200,000 P 300,000 Car, Malaysia 300,000 200,000 Rest House, Tagaytay 1,000,000 2,000,000 Rest House, Malaysia 1,500,000 2,500,000 How much is his gross gift is: a. P950,000 b. P3,200,000 c. P4,100,000 d. P850,000

d. P850,000

Under conjugal partnership of gains, which of the following is an exclusive property? a. Properties acquired by chance, such as winning from gambling or betting b. Property acquired during the marriage using common fund for the exclusive use of one of the spouses c. Properties acquired through occupation such as fishing or hunting d. Properties acquired during the marriage by gratuitous title

d. Properties acquired during the marriage by gratuitous title

Under conjugal partnership of gains, which of the following is an exclusive property? a. Property acquired during the marriage using common fund for the exclusive use of one of the spouses b. Properties acquired by chance, such as winning from gambling or betting c. Properties acquired through occupation such as fishing or hunting d. Properties acquired during the marriage by gratuitous title

d. Properties acquired during the marriage by gratuitous title

The amount of all bequests, legacies, devises or transfers to or for the use of the Government of the Republic of the Philippines or any political subdivision thereof, for exclusively public purposes. a. Property previously taxed b. Family home c. Vanishing deduction d. Transfers for public use

d. Transfers for public use

Statement 1 - For purposes of prescribing real property values, the Commissioner is authorized to divide the Philippines into different zones or areas and shall, upon consultation with competent appraisers, both from the private and public sectors, determine the fair market value of real properties located in each zone or area. Statement 2 - In the case of shares of stocks, the fair market value shall depend on whether the shares are listed or unlisted in the stock exchanges. a. True; False b. False; True c. False; False d. True; True

d. True; True

Which is false? a. Family home is the dwelling house, including the land on which it is situated, where the husband and wife, or a head of the family, or ingle person and members of their family reside, as certified to by the Barangay Captain of the locality. b. The family home is deemed constituted on the house and lot from the time it is actually occupied as a family residence and is considered as such for as long as any of its beneficiaries actually resides therein. c. Actual occupancy of the family home as the family residence shall not be considered interrupted or abandoned in such cases as the temporary absence from the constituted family home due to travel or studies or work abroad, etc. d. Family home deduction is an amount equivalent to the current fair market value of the decedent's family home: Provided, however, that if the said current fair market value exceeds Ten million pesos (P10,000,000), the excess shall be subject to estate tax. a. a only b. a and b c. b and c d. d only

d. d only

Rody, a non-resident alien made the following donations. a. To Mar, a land worth P 450,000 in Manila. b. To Leni, jewelry worth P 100,000 in Japan. c. To Miriam, PLDT shares amounting to P 150,000. d. To Jojo, a building in Italy P 1,600,000 mortgaged for P 50,000 assumed by the donee. e. To Allan, land in Davao worth P 300,000. f. To Antonio, P 300,000 cash, PNB New York g. P 200,000 receivable to Joy, 50% condoned by Rody Rody also transferred the following properties: Selling Price FMV Car, Makati P 200,000 P 300,000 Car, Malaysia 300,000 200,000 Rest House, Tagaytay 1,000,000 2,000,000 Rest House, Malaysia 1,500,000 2,500,000 Compute the gross gift. a. P1,100,000 b. P3,200,000 c. P3,200,000 d. P1,200,000

a. P1,100,000

Statement I - Any amount received by the heirs from the decedent's employer as a consequence of the death of the decedent-employee in accordance with Republic Act No. 4917 is allowed as a deduction provided that the amount of the separation benefit is included as part of the gross estate of the decedent. Statement II - After deducting the allowable deductions appertaining to the conjugal or community properties included in the gross estate, the share of the surviving spouse must be removed to ensure that only the decedent's interest in the estate is taxed. a. True; True b. False; True c. True; False d. False; False

a. True; True

Who shall file the estate tax return? a. executor, b. administrator c. any of the legal heirs d. Commissioner of the BIR a. a or b or c b. c only c. d only d. a or b

a. a or b or c

Registered or registrable includes a. real property, b. motor vehicle, c. shares of stock or other similar property d. Checks a. a,b and c b. d only c. b only d. a only

a. a,b and c

a. b and c

Jennifer is the only daughter of Janina, an American and a a resident in Los Angeles, California, U.S.A. Janina died in the U.S. leaving Jennifer one million shares of Sun Life (Philippines), Inc., a corporation organized and existing under the laws of the Republic of the Philippines. Said shares were held in trust for Janina by the Corporate Secretary of Sun Life and the latter can vote the shares and receive dividends for Janina. The Internal Revenue Service (IRS) of the U.S. taxed the shares on the ground that Janina was domiciled in the U.S. at the time of her death. Question: Can the CIR of the Philippines also tax the same shares? Which choice will answer the question correctly? a. b only b. c only c. a,b and c d. a only

a. b only

A statement duly certified by a Certified Public Accountant does not contain a. the amount of tax due and outstanding. b. itemized deductions from gross estate c. itemized assets of the a nonresident, not a citizen of the Philippines decedent with their corresponding gross value at the time of his death, of his gross estate wherever situated d. the amount of tax due and already paid

a. the amount of tax due and outstanding.

Which is not a kind of succession under estate taxation? Answers: a. Intestate b. Joint c. Mixed d. Testate

b. Joint

Which is a transfer in contemplation of death? 1. A father donated all his property to his only son but he reserved to himself the usufruct of three parcels of land. 2. Where a donor donated a property and after a short time executed a will instituting the donee as one of the legatees in his will. It is clear that the donation was made in contemplation of death. a. 1 and 2 b. 2 only c. none d. 1 only

b. 2 only

Properties acquired before marriage by either spouse who had legitimate descendants by a former marriage During the engagement ceremony before their marriage, the man gifted his woman an expensive diamond necklace. The necklace was for the exclusive use of the woman. How would this necklace be classified for Philippine estate tax purpose, assuming the man died and was survived by the woman and they were under absolute community of properties? a. Exclusive property of the surviving spouse b. Communal property c. Excluded from the gross estate d. Exclusive property of the decedent

b. Communal property

Mr. Mani, resident decedent, married, died, leaving the following properties: Real and personal properties acquired during the marriageP 3,000,000 House and lot inherited from his father one year and 3 months before he died (fair market value when inherited, P 1,500,000) used as the decedent's family home2,000,000 Car purchased with cash received as gift from his mother during the year he died500,000 Cash (inclusive of P 500,000 received as inheritance from the father)1,500,000 The following obligations and expenses were also made available: Claims against conjugal properties600,000 Unpaid mortgage on the inherited house and lot (original mortgage was for P 600,000)100,000 How much is the vanishing deduction? a. P 1,0000,000 b. P 1,530,000 c. 0 d. P 1,080,000

b. P 1,530,000

The following donations were made by Mr. Brian Villaldos: Date Donee Amount January 30, 2018 Mother P2,000,000 March 30, 2018 Girlfriend P1,000,000 August 15, 2018 Lead Review Center P500,000 How much is the donor's tax due on January 30, 2018 donation? a. P 120,000 b. P 105,000 c. P 250,000 d. P 1,750,000

b. P 105,000

A citizen-decedent died in 2018 with the following data: Philippines USA Gross Estate P 14,200,000 P4 ,400,000 Allowable Deductions (excluding standard deduction) 6,400,000 2,200,000 Estate tax paid - 150,000 How much is the estate tax payable in the Philippines assuming the decedent is a non-resident citizen? a. P 300,000 b. P 168,000 c. P 150,000 d. P 132,000

b. P 168,000

The following donations were made by Mr. Brian Villaldos: Date Donee Amount January 30, 2018 Mother P2,000,000 March 30, 2018 Girlfriend P1,000,000 August 15, 2018 Lead Review Center P500,000 How much is the donor's payable on March 30, 2018 donation? a. P 265,000 b. P 60,000 c. P 250,000 d. P 120,000

b. P 60,000

Pedro died on Nov. 1, 2018 leaving a family home composed of the following: Conjugal house worth P 8,000,000, and the land which he exclusively owned valued at P 4,000,000. He also owns a vacation house in Baguio worth P 7,000,000. The deductible amount of family home is: a. P 12,000,000 b. P 8,000,000 c. P 4,000,000 d. P 10,000,000

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