Tax Compre 1 PDF

Question 1 1.43 out of 1.
43 points
The fruits received during marriage from gratuitous transfer will be classified as:
Selected
Answer: Absolute Community Property, Exclusive; Conjugal Partnership of Gains,
Conjugal.
Answers: Absolute Community Property, Community; Conjugal Partnership of Gains,
Conjugal.
Absolute Community Property, Exclusive; Conjugal Partnership of Gains,
Exclusive.
Absolute Community Property, Community; Conjugal Partnership of Gains,
Exclusive.

Conjugal.
Question 2 1.43 out of 1.43 points

In January 2021, Joshua sold his 2021 Ferrari 458 Italia with fair market value of
Php22,000,000.00 to his best friend, Patrick for only Php5,000,000.00. In their deed of sale, they
agreed for revocable transfer and Patrick can only acquire absolute ownership upon demise of
Joshua. Unfortunately, Joshua died of vehicular accident in Cavite City on August 26, 2021. At
that time, the Ferrari has fair market value of Php20,000,000.00. Is the Ferrari to be included in
Joshua's gross estate and if yes, how much?
Selected Yes, Php15,000,000.00 shall be included in the gross estate.
Answer:
Answers: No, since there was a sale for insufficient consideration subject to donor's tax.
Yes, Php17,000,000.00 shall be included in the gross estate.
No, because the transaction is subject to income tax.
Yes, Php15,000,000.00 shall be included in the gross estate.

Pedro, head of the family, died intestate on August 20, 2021 leaving the following properties:
Land and house (family home), P8,000,000; Agricultural land inherited from his father who died 2
½ years before his death, 800,000; Other real properties, 11,000,000; Other tangible personal
properties, 200,000; Bank deposit, PNB-Manila representing amount received by heirs under
R.A. No. 4917, 500,000. Obligations of and charges against certain properties follow: Claims
against the estate other than unpaid mortgage, 270,000; Unpaid mortgage on inherited
agricultural land, 30,000; Claims against insolvent persons, 100,000. The value of the agricultural
land at the time of inheritance was P500,000. It had an unpaid mortgage of P80,000. How much
was the vanishing deduction?
Selected Answer: P264,757
Answers: P264,757
P253,443
P159,107
P318,214

Which of the following statements is wrong?
Selected
Answer: The power of taxation may be exercised by the government, its political
subdivision, and public utilities;
Answers:
The power of taxation may be exercised by the government, its political
subdivision, and public utilities;
Generally, there is no limit on the amount of tax that may be imposed;
The money contributed as tax becomes part of the public funds;
The power of tax is subject to certain constitutional limitations.

Which of the following statements is incorrect?
Selected
Answer: The power of the decedent-transferor to revoke terms may be exercised just once.
Answers: 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 decedent-
transferor.
A revocable transfer shall be included in the gross estate of the decedent-transferor
even though the power to revoke was not exercised.

The power of the decedent-transferor to revoke terms may be exercised just once.

Properties owned by the spouses before and brought into the marriage shall be classified as:
Selected
Answer: Absolute Community Property, Community; Conjugal Partnership of Gains,
Exclusive.
Conjugal.
Exclusive.

Exclusive.
Conjugal.
Question 7 0 out of 1.43 points

Which of the following is not a legislative function?
Selected
Answer: Selecting the kind of tax, True; Prescribing rules of taxation, True; Fixing tax
rates, True.
Answers: Selecting the kind of tax, True; Prescribing rules of taxation, True; Fixing tax
rates, True.
Selecting the kind of tax, False; Prescribing rules of taxation, False; Fixing tax
rates, True.

Selecting the kind of tax, False; Prescribing rules of taxation, False; Fixing tax
rates, False.
Selecting the kind of tax, False; Prescribing rules of taxation, True; Fixing tax
rates, False.

Mr. Bill Morgan, a Canadian citizen but resident of El Nido, Palawan, donated in 2021 his car in
Canada to his future daughter in-law who is to be married to his only son in Canada. His son and
future daughter in law are both citizens and residents of Canada. What is the tax implication of
the above donation?
Selected The donation is taxable at 6% in excess of P250,000.
Answer:
Answers: The donation is not subject to donor's tax since the donee is a non-resident alien
and the donated property is located in Canada.
The donation is taxable at 6% in excess of P250,000.
The donation is subject to graduated rates.

None of the above

Willie, decedent, is a Malaysian residing in Kyoto, Japan with taxable gross estate in the
Philippines. How much can his estate claimed as standard deduction, if any?
Selected Answer: Php500,000.00
Answers: Php10,000,000.00
Php5,000,000.00
Php2,000,000.00
Php500,000.00

The following expenses and obligations were left by Boning upon his death: Notes payable, not
notarized, Php30,000.00; Loans payable, Metrobank, 300,000.00; Accounts receivable, debtor is
not insolvent,40,000.00; Accounts receivable, debtor is insolvent, 60,000.00; Amount received by
heirs under R.A. 4917, 200,000.00; Income taxes on income of the estate of decedent during
settlement of estate, 7,500.00. How much is the total deductible from the gross estate (include
standard deduction)?
Selected Answer: Php5,560,000.00
Php5,560,000.00
Php560,000.00
Php10,560,000.00

Statement 1: The constitution is the source of the State's taxing power.; Statement 2: The police
power of the government may be exercised through taxation.
Selected Answer: Statement 1 is false but statement 2 is true
Answers: Statements 1 and 2 are false
Statement 1 is true but statement 2 is false
Statement 1 is false but statement 2 is true
Statements 1 and 2 are true

Which of the following properties of Namayapa Nha who died December 1, 2021 is subject to
vanishing deduction? Property 1: Rest House in Tagaytay purchased in 2019; Property 2:
Commercial lot and building inherited from her mother in 2019 where the estate tax thereon had
not been paid.; Property 3: Donation from a friend in 2019; Property 4: Property won in a lottery
six (6) months before death.
Selected Answer: Property 1, No; Property 2, No; Property 3, Yes; Property 4, Yes.
Answers: Property 1, No; Property 2, No; Property 3, Yes; Property 4, Yes.
Property 1, Yes; Property 2, No; Property 3, Yes; Property 4, No.
Property 1, Yes; Property 2, No; Property 3, No; Property 4, Yes.

Property 1, Yes; Property 2, Yes; Property 3, No; Property 4, No.

Mr. and Mrs. Pinagpala donated the following in 2021. March 30: Land valued at P620,000 to
Ana, legitimate daughter, on account of marriage; Cash of P100,000 to Juan, legitimate son, for
successfully passing the CPA Licensure exam; Second hand car (capital property) valued at
P400,000 to Mr. Pinagpala's long-time friend, Pedro. May 15: Cash of P200,000 to Melda, mother
of Mrs. Pinagpala; Jewelry (paraphernal property) worth P100,000 to Emma, Mrs. Pinagpala's
best friend. December 25: Cash of P250,000 to Quezon City government for public use. The
donor's tax due on the March 30 donation should be:
Selected Answer: P30,600 for Mr.; P6,600 for Mrs.
Answers: P0 for Mr. & Mrs.

P18,600 each for Mr. & Mrs.
P30,600 for Mr.; P6,600 for Mrs.

Which of the following allowable deductions of a non-resident alien decedent should be prorated?
Selected Answer: Net share of the surviving spouse
Answers: Net share of the surviving spouse

Transfers for public use
Unpaid mortgage
Property previously taxed

The nature of the power of taxation
Selected Answer: It is an attribute of sovereignty
Answers: It is founded on the obligation of the individual to the State.

It is for the protection of the State
It is about the safety of the State as an institution
It is an attribute of sovereignty

Proceeds of life insurance is included in the gross estate, except –
Selected The beneficiary is third person and designation is irrevocable.
Answer:
Answers: The beneficiary is the estate or executor/administrator and the designation is
revocable.
The beneficiary is third person and designation is revocable.
The beneficiary is third person and designation is irrevocable.
The beneficiary is the estate or executor/administrator and the designation is

silent.

The following are subject to estate tax, except –
Selected
Answer: Bona fide sale for an adequate and full consideration in money or money's
worth
Answers: Transfer in contemplation of death
Revocable transfers
Transfer under general power of appointment

Bona fide sale for an adequate and full consideration in money or money's
worth

The following expenses and obligations were left by Boning upon his death: Notes payable, not
notarized, Php30,000.00; Loans payable, Metrobank, 300,000.00; Accounts receivable, debtor is
not insolvent, 40,000.00; Accounts receivable, debtor is insolvent, 60,000.00; Amount received
by heirs under R.A. 4917, 200,000.00; Income taxes on income of the estate of decedent during
settlement of estate, 7,500.00. How much is the total deductible from the gross estate (include
standard deduction)?
Php5,560,000.00
Php560,000.00
Php10,560,000.00

Estate tax return is required to be filed when the estate is taxable or it consists of registrable
properties. It is also required to be accompanied by Certified Statement of Certified Public
Accountant when the gross value of the estate –
Selected Exceeds Php5,000,000.00
Answer:
Answers: Exceeds Php2,000,000.00
Exceeds Php5,000,000.00
Exceeds Php10,000,000.00
Regardless of the value, the estate tax return shall always be accompanied by
CPA certification

Mr. Hamas, knowing fully well that he is to die within six (6) months due to brain cancer, sold its
residential property to his only son for P 5,500,000. The fair market value of the said property at
the time of sale is P 5,000,000. Which of the following statements is correct?
Selected The property should no longer be included in the gross estate.
Answer:
Answers: The property should be included as part of the gross estate since it falls under
"Transfer in contemplation of death", the purpose of which is paying capital gains tax
of 6% which is cheaper than estate tax.
The property should no longer be included in the gross estate.
The sale should be subject to value-added tax and capital gains tax.
The sale should be subject to percentage tax and capital gains tax.

The power of taxation can be used for sumptuary purpose. It is used as an incentive or a
discouraging factor for the improvement of social and economic conditions affecting the
community at large and collectively with a view of bringing about the greatest good to the
greatest number. The following are examples of sumptuary purpose, except:
Selected Answer: Control inflation
Answers: Encourage growth of local industries

Reduce social inequalities
Control inflation
To single out business harmful to Philippine Society.

Which is intangible personal property with situs in the Philippines?
Selected
Answer: Patent on the Prime Mobile's Innotech Phone, registered in Philippines' IPO.
Answers: A Ford Mustang V8 GT parked in decedent's residence in White Plains,
Quezon City

Patent on the Prime Mobile's Innotech Phone, registered in Philippines' IPO.
Shares of stock of US-based, Kowitt Corporation
Shares of stock of Lauderdale Company, 60% of its business in the
Philippines.
Question 23
Decedent died leaving behind properties which include a Toyota FJ Cruiser 1.43 out worth
vehicle of 1.43 points
Php2,000,000.00. The same was declared in the gross estate. Unfortunately, on the third month
and during settlement of estate, said vehicle was carnapped and could no longer be located by
authorities. The estate received insurance proceeds equivalent to its value of Php2,000,000.00.
How much can be claimed as allowable deduction by the estate on the loss of the vehicle?
Selected Answer: Zero
Php1,000,000.00
Php500,000.00
Zero

In his will, Lolo Juanito devised a real property in Cebu City in favor of his son, Juan, with a
proviso that that the devise shall only be transferred to his grandson, John (son of Juan). At the
time of Lolo Juanito's death, the said real property has zonal value of Php2,000,000.00 and
assessed value of Php1,800,000.00. While, upon death of Juan, the same real property has
zonal value of Php3,000,000.00 and assessed value of Php2,500,000.00. John is tasked to
process the estate tax compliance of his father, Juan. Granting arguendo that the estate of Juan
has several properties that are also taxable, how much value of the said real property in Cebu
City is to be included in the gross estate of Juan?
Php3,000,000.00
Php2,500,000.00
Zero

The following properties will be classified uniformly under Conjugal Partnership of Gains and
Absolute Community of Property, except:
Selected
Answer: Fruits or income due or derived during the marriage coming from exclusive
properties
Answers: Property inherited or received as donation during the marriage
Property acquired from labor, industry, work or profession of spouses
Fruits or income due or derived during the marriage coming from common
properties

Fruits or income due or derived during the marriage coming from exclusive
properties

Mr. Hinada, a Japanese citizen residing in Osaka, sold his shares of stock in UCC Corp. to Ms.
Japlos, a Filipina, for P700,000 at the time when its fair market value was P1,000,000. It was
agreed between the parties that as long as the seller lives, he shall be entitled to the dividends.
After two years from the date of sale, Mr. Hinada died. The fair market value of the shares at that
time is already P1,500,000. Other than Japan (Head Office), UCC Corp. also operates in
Singapore, Korea, France, United Kingdom and USA. Based on the above data, which of the
following statements is correct?
Selected
Answer: The estate of Mr. Hinada will include P800,000 in the computation of gross estate.
Answers: The sum of P300,000 shall be subject to donor's tax.
The estate of Mr. Hinada will include P800,000 in the computation of gross estate.
The above transaction may be subject to donor's tax or estate tax upon the election
of Mr. Hinada or the executor or administrator of his estate.
The above transaction is neither subject to donor's tax nor estate tax.

For the donation to be considered valid, acceptance of the donation must be made:
Selected Answer: During the lifetime of the donor and the donee.
Answers: During the lifetime of the donor only.

During the lifetime of the donee only.
During the lifetime of the donor and the donee.
None of the choices.

Alpha Corporation is transferring its office from Makati to Manila. It sold to Omega Corporation its
existing lot and office building valued at P80M for P60M. What tax should be imposed and
collected from Alpha Corporation as a result of the transaction?
Selected Answer: Donor's Tax
Answers: Capital gains tax
Donor's Tax
Real property Tax

Capital gains tax and Donor's Tax

Statement 1: Resident alien would be subject to donor's tax only on their donations of property
located in the Philippines.; Statement 2: A donation by a foreign corporation of its own shares of
stock to resident employees is not subject to gift tax but may be subjected to income tax.
Selected Answer: Only the second statement is correct.
Answers: Only the first statement is correct
Only the second statement is correct.
Both statements are correct.

Both statements are incorrect.

The appointment which may be exercised only in favor of a certain person or persons designated
by the prior decedent which is excluded in the gross estate of the present decedent.
Selected Answer: Special power of appointment
Answers: Special power of appointment
General power of appointment

Special power of attorney
General power of attorney

A conjugal parcel of land in Zamboanga Del Sur is declared in the gross estate of Teofilo for
Php10,000,000.00. However, during his lifetime, Teofilo contracted a loan in the amount of
Php2,000,000.00 secured by said parcel of land. The proceeds of loan intended for the medical
school of his son, James. He was able to pay Php500,000.00 before he died. How much can be
claimed as allowable deduction from Teofilo's gross estate?
Php2,000,000.00
Php1,500,000.00
Php1,500,000.00

The following are the requisites in order that claims against the decedent's estate may be
deductible except:
Selected Answer: The debt is defective and unenforceable contract.
Answers: The debt represents valid obligation of the decedent.

The debt was contracted in good faith.
The debt must not have been prescribed.
The debt is defective and unenforceable contract.

The following are similarities among the Fundamental Powers of the State, except:
Selected They can be abolished by the Constitution.
Answer:
Answers: They can be abolished by the Constitution.
They constitute the three methods by which the State interfered with private
property rights.
Each presupposes an equivalent compensation to the inhabitants.
The emergence of the State carries with it these fundamental powers.

Renz, a Japanese residing in California, USA, out of his love to Filipinos devised in his will to the
Philippine Government a real property located in Japan to be used for public purpose, amounting
to Php4,000,000.00 (converted to peso). How much can be claimed as allowable deduction
arising from the said devise from Renz' gross estate (excluding standard deduction)?
Php2,000,000.00
Php500,000.00
Zero

On January 15, 2021, Daisy gave a piece of land to her brother-in-law who is getting married on
February 14, 2021. The assessed value and zonal value of the land were P750,000 and
P1,000,000 respectively. The land had an unpaid mortgage of P200,000, which was not assumed
by the donee and an unpaid realty tax of P10,000 which was assumed by the donee. How much
was the donor's tax due?
Answers: P297,000
P237,000
P59,400
P44,400

On June 13, 2021, Mumoy died leaving 2,000 shares of stock of Edsa Corporation listed in the
Philippine Stock Exchange (PSE). The following are the quotations of Edsa shares in the PSE:
June 1 to June 13, 2021, Price/Quotation of Shares - No available quotation; June 14, 2021,
Price/Quotation of Shares -Lowest = Php39.00; Highest = Php40.00; June 15, 2021,
Price/Quotation of Shares - Php40.00. How much is the value to be included in the gross estate
of Mumoy?
Answers: P20,000
P80,000
P79,000
P78,000

Ronald, a nonresident citizen, made the following donations: a. To Pedro, a land worth P450,000
in Manila; b. To Ana, jewelry worth P100,000 in Japan.
Selected P850,000
Answer:
Answers: To Lorna, PLDT shares amounting to P150,000; d. To Juan, a building in Italy
P1,600,000 mortgaged for P50,000 assumed by the donee; e. To Ben, land in Davao
worth P300,000; f. To Antonio, P300,000 cash, PNB New York; g. P200,000
receivable to Joy, 50% condoned by Ronald. Ronald also transferred the following
properties.: Car, Makati - Selling Price P200,000; FMV P300,000: Car, Malaysia -
Selling Price 300,000; FMV 200,000: Rest House, Tagaytay - Selling Price
1,000,000; FMV 2,000,000: Rest House, Malaysia - Selling Price 1,500,000; FMV
2,500,000. How much is the gross gift if there is reciprocity?
P850,000
P950,000
P1,050,000
P700,000

Who among the following transferors is not liable for estate tax on the property transferred during
his lifetime?
Selected
Answer: The donee of an appointed property who is required under a power of appointment
to transfer such property upon death to his eldest child.
Answers: The testator who bequeaths property to his heirs in a last will and testament
executed and probated during his lifetime.
The donor who reserves his right to amend or revoke the donation of property in
favor of the donee.

The donee of an appointed property who is required under a power of appointment
to transfer such property upon death to his eldest child.
The transferor of personal property who sold it for insufficient consideration.

Cardo, Filipino decedent who was married to Lia. He left a community residential property (family
home) the spouses acquired for Php8,000,000.00 but with fair market value at the time of death
of Php12,000,000.00. How much is the amount to be included in the gross estate?
Php8,000,000.00
Php10,000,000.00
Php12,000,000.00

The scope of the police power of the State
Selected Answer: Greatest good for the greatest number of people
Answers: Security of the State

Improvement of a community
Greatest good for the greatest number of people
Foundation of social existence.

Pedro, head of the family, died intestate on August 20, 2021 leaving the following properties:
Land and house (family home), P8,000,000; Agricultural land inherited from his father who died 2
½ years before his death, 800,000; Other real properties, 11,000,000; Other tangible personal
properties, 200,000; Bank deposit, PNB-Manila representing amount received by heirs under
R.A. No. 4917, 500,000. Obligations of and charges against certain properties follow: Claims
against the estate other than unpaid mortgage, 270,000; Unpaid mortgage on inherited
agricultural land, 30,000; Claims against insolvent persons, 100,000. The value of the agricultural
land at the time of inheritance was P500,000. It had an unpaid mortgage of P80,000. How much
was the taxable net estate?
Selected Answer: P6,435,243
Answers: P6,684,822
P6,696,557
P6,435,243
P6,631,786

Losses arising from fires, storms, shipwreck, or other casualties, or from robbery, theft or
embezzlement may be deductible. Which of the following is not a prerequisite for its deductibility?
Selected Incurred prior to the death of the decedent.
Answer:
Answers: Incurred prior to the death of the decedent.
Such losses are not compensated for by insurance or otherwise.

At the time of the filing of the return such losses have not been claimed as a
deduction for income tax purposes in an income tax return.
Such losses were incurred not later than the last day for the payment of the estate
tax.

Which of the following distinguishes license fee from tax?
Selected Answer: Non-payment does not necessarily render the business illegal
Answers: Non-payment does not necessarily render the business illegal

A regulatory measure
Imposed in the exercise of police power
Limited to cover cost of regulation

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
Selected Answer: nil
Answers: nil
P500,000
P3,000,000
P3,500,000

Art Gomez, a Malaysian bachelor based in Wuhan, China died in August 2020. The information
of his estate follows: House and Lot, Pasay City, Php5,000,000.00; House and Lot, Kuala
Lumpur, Php12,000,000.00; Accounts Receivable, debtor is located in Manila, Php1,000,000.00;
Shares of stock, GKlix Corp. (foreign share with situs in the Phils), Php500,000.00; Shares of
stock of Belize, LLC. (foreign corp., 80% of business in Phils), Php200,000.00; Car, Land Rover
Sport, Manila, Php 8,000,000.00. Total of Php 26,700,000.00 Assuming there is no reciprocity,
how much is to be included in the gross estate of Art Gomez?
Php14,500,000.00
Php13,000,000.00
Zero; Exempt

Given the following information: Real property, Manila devised to the City of Manila,
Php1,500,000.00; Family home (Masbate), 2,000,000.00; Amount received by heirs under R.A.
4917, 800,000.00; Standard deduction, 500,000.00. How much can be claimed as allowable
deduction if the decedent is a non-resident alien?
Php3,500,000.00
Php2,000,000.00
Php1,500,000.00

Which of the following is not deductible from the gross estate of a decedent who died on
September 16, 2020?
Selected Income tax on income earned during the last quarter of 2020.
Answer:
Answers: Income tax on income earned from January 1 to September 15, 2020.
Gift taxes on donations given on June 12, 2020.
Real property tax for 2020 where the tax declarant avails of instalment
payment.
Income tax on income earned during the last quarter of 2020.

Which of the following is subject to donor's tax?
Selected
Answer: 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.
Answers: General renunciation by an heir of his/her share in the hereditary estate left by the
decedent.

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.
General renunciation by the surviving spouse of his/her share in the hereditary
estate left by the decedent.
Gift through creation of a trust.

The fruits on properties owned by the spouses before and brought into the marriage shall be
classified as:
Selected
Answer:
Conjugal.
Answers:
Conjugal.
Exclusive.
Exclusive.
Conjugal.

Willie, decedent, is a Filipino citizen residing in Kyoto, Japan with taxable gross estate in the
Philippines. How much can his estate claimed as standard deduction, if any?
Php5,000,000.00
Php2,000,000.00
Php500,000.00

One of the properties left by a decedent was gutted by fire during the settlement of the estate.
The executor decided to claim the losses in computing income tax of the estate. One of the heirs
objected to the executor since even before deducting the said losses, the taxable income of the
estate is already zero. However, the executor stood his ground and insisted on claiming the
losses as deduction in computing income tax. Which of the following statements is correct?
Selected The losses can no longer be deducted in computing the estate tax.
Answer:
Answers: The losses can no longer be deducted in computing the estate tax.
The losses can still be claimed as deduction in computing the estate tax since there
is no prohibition against it under the tax laws, rules and regulations.
The losses can still be claimed as deduction in computing the estate tax since there
was no tax benefit resulted in the deduction in the computation of income tax.
The losses cannot be claimed as deduction both in the computation of estate tax and
income tax since it occurred during the settlement of the estate.

When Xavier sustained pneumonia in 2020, she immediately proposed marriage to Rachelle and
they got married on December 12, 2020. Subsequently, Xavier tested positive of Covid-19 in
2021 and subsequently died with complications. His widow went to you and presented their
properties, to wit: Real property in Cotabato City, Xavier brought to marriage, FMV at the time of
Death - Php3,000,000.00; Condominium unit in Makati City, brought to marriage by Rachelle,
FMV at the time of Death - Php5,000,000.00; A farm land in Davao del Sur acquired by spouses
during marriage, FMV at the time of Death - Php7,000,000.00; A sugar plantation in Cagayan de
Oro, inherited by Xavier during marriage, FMV at the time of Death - Php6,000,000.00; A
townhouse in Quezon City, donated to Rachelle during marriage, FMV at the time of Death -
Php12,000,000.00. What amount is to be excluded in the gross estate of Xavier?
Php5,000,000.00
Php6,000,000.00
Php3,000,000.00

Bentu inherited from his father, Benjuan, a commercial lot in Quezon City on March 10, 2015,
with value of Php4,000,000.00. The estate tax on said transfer was paid and no previous
deduction on the property was claimed. However, upon knowing of the declaration of ECQ on
March 13, 2020, Bentu suffered heart attack and instantaneously died. The fair market value of
the commercial lot at time of his death was Php5,000,000.00. Additional information: Mortgage
paid, Php200,000.00; Value of gross estate, Php15,200,000.00; Total losses, indebtedness,
taxes and TPU, Php500,000.00. How much can be claimed as vanishing deduction?
Selected Answer: None
Answers: None
Php735,000.00
Php773,684.21
Php1,470,000.00

The following deductions are also part of the gross estate, except:
Selected Answer: Death benefits under Republic Act 4917
Answers: Claims against the estate
Claims against insolvent persons

Transfer for public use
Death benefits under Republic Act 4917

X, a multinational corporation not doing business in the Philippines, donated 100 shares of stock
of said corporation to Mr. "Y", a Filipino citizen. What is the tax liability, if any, of "X" corporation?
Selected Answer: The donation is not subject to donor's tax.
Answers: The donation is not subject to donor's tax.
The donation is subject to 30% donor's tax based on net gift.

The donation is subject to graduated rates based on net gift.
The donation is subject to 30% donor's tax based on gross gift.

What is the tax implication if a corporation condones the debt of a shareholder because of a good
thing done by the latter to the corporation?
Selected
Answer: It is tantamount to a declaration of dividend. Therefore, it is an income which is
subject to 10% final withholding tax on the shareholder. However, it is not subject to
donor's tax on the corporation.
Answers: The condonation is based on the liberality of the corporation, therefore, it is subject
to donor's tax.
The condonation is subject to donor's tax on the corporation because it is based on
its liberality. Moreover, it is equivalent to a payment of dividend income on the
shareholder, which is therefore, subject to a final withholding tax on income of 10%.

It is tantamount to a declaration of dividend. Therefore, it is an income which is
subject to 10% final withholding tax on the shareholder. However, it is not subject to
donor's tax on the corporation.
It is just a simple case of extinguishment of an obligation which is neither subject to
income tax on the part of the shareholder nor a donor's tax on the corporation.

A decedent taxable only on properties located in the Philippines
Selected Answer: Non-resident alien decedent
Answers: Resident citizen decedent

Non-resident citizen decedent
Resident alien decedent
Non-resident alien decedent

Bentu inherited from his father, Benjuan, a commercial lot in Quezon City on March 10, 2015,
with value of Php4,000,000.00. The estate tax on said transfer was paid and no previous
deduction on the property was claim. However, upon knowing of the declaration of ECQ on
March 13, 2019, Bentu suffered heart attack and instantaneously died. The fair market value of
the commercial lot at time of his death was Php5,000,000.00. Additional information: Mortgage
paid, Php200,000.00; Value of gross estate, Php15,200,000.00; Total losses, indebtedness,
taxes and TPU, Php500,000.00. How much can be claimed as vanishing deduction?
Selected Answer: Php773,684.21
Answers: None
Php735,000.00
Php773,684.21
Php1,470,000.00

Which theory in taxation states that without taxes, a government would be paralyzed for lack of
power to activate and operate it, resulting in its destruction?
Selected Answer: Lifeblood theory
Answers: Power to destroy theory
Lifeblood theory
Sumptuary theory
Symbiotic doctrine

Ronald, a resident citizen, made the following donations: a. To Pedro, a land worth P450,000 in
Manila; b. To Ana, jewelry worth P100,000 in Japan.
Selected P4,100,000
Answer:
2,500,000. How much is the gross gift?
P5,200,000
P4,200,000
P4,100,000
P3,200,000

Ronald, a nonresident citizen, made the following donations: a. To Pedro, a land worth P450,000
in Manila; b. To Ana, jewelry worth P100,000 in Japan.
Selected P1,100,000
Answer:
2,500,000. How much is the gross gift?
P3,200,000
P1,200,000
P1,100,000
P850,000

Claims against insolvent debtor should be included in the decedent's gross estate
Selected Answer: For the full amount of the receivable
Answers: For the full amount of the receivable
For the uncollectible portion of the receivable

For the collectible portion of the receivable
For the net amount of the receivable

On June 13, 2021, Simone died leaving the following properties: 2019 Honda civic car, Cost =
P1M; FMV (2020) = P900,000; FMV (Death) = P800,000; House and Lot, Cotabato City, Zonal
value = P1M; Assessed value = P700,000 (Valuations at Death). How much is the value to be
included in the gross estate of Simone?
Selected Answer: P1,500,000.00
Answers: P1,900,000.00
P1,800,000.00
P1,700,000.00
P1,500,000.00

Mr. and Mrs. Pinagpala donated the following in 2021. March 30: Land valued at P620,000 to
donor's tax due on the December 25 donation should be:
Selected Answer: P0 for Mr. and Mrs.
Answers: P0 for Mr. and Mrs.

P36,600 for Mr.; P18,600 for Mrs.
P40,000 for Mr. and Mrs.

Erick is a single Filipino decedent leaving behind a family dwelling house for his parents and
siblings (certified by the barangay chairman as family home), which he acquired for
Php8,000,000.00 but with fair market value at time of death of Php12,000,000.00. How much can
be availed as allowable family home deduction?
Php8,000,000.00
Php10,000,000.00
Php12,000,000.00

Art Gomez, a Malaysian bachelor based in Wuhan, China died in August 2020. The information
of his estate follows: House and Lot, Pasay City, Php5,000,000.00; House and Lot, Kuala
Lumpur, Php12,000,000.00; Accounts Receivable, debtor is located in Manila, Php1,000,000.00;
Shares of stock, GKlix Corp. (foreign share with situs in the Phils), Php500,000.00; Shares of
stock of Belize, LLC. (foreign corp., 80% of business in Phils), Php200,000.00; Car, Land Rover
Sport, Manila, Php 8,000,000.00. Total of Php 26,700,000.00 Assuming there is reciprocity, how
much is to be included in the gross estate of Art Gomez?
Php14,500,000.00
Php13,000,000.00
Zero; Exempt
Mr. and Mrs. Pinagpala donated the following in 2021. March 30 Land valued at P620,000 to
donor's tax due on the May 15 donation should be:
Selected Answer: P6,000 for Mr.; P12,000 for Mrs.
Answers: P6,000 for Mr.; P6,600 for Mrs.
P36,600 for Mr.; P18,600 for Mrs.

P40,000 for Mr. and Mrs.

If an individual performs services for a creditor who in consideration thereof cancels the debt, the
cancellation of indebtedness may amount to a
Selected Answer: Payment of income
Answers: Gift
Capital contribution
Donation inter vivos
Payment of income

Steve, decedent, is a resident and citizen of Monaco owning 10,000.00 listed shares of San
Miguel Corporation (domestic corp.) with quotation of Php1,500/share; and par value of
Php1,400.00/share, at the time of his death. Monaco is a tax-free country and does not impose
estate tax on properties located therein. How much is subject to Philippine estate tax?
Selected Answer: Zero; Exempt
Php14,000,000.00
Php1,000,000.00
Zero; Exempt

Properties received from gratuitous transfer during marriage shall be classified as:
Selected
Answer: Absolute Community Property, Exclusive; Conjugal Partnership of Gains,
Exclusive.
Conjugal.

Exclusive.
Exclusive.
Conjugal.

Tax Compre 1 PDF

Uploaded by

Copyright:

Available Formats

You might also like

Tax Compre 1 PDF

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Tax Compre 1 PDF

Uploaded by

Copyright:

Available Formats

Question 1 1.43 out of 1.

Question 2 1.43 out of 1.43 points

Yes, Php15,000,000.00 shall be included in the gross estate.

Question 3 1.43 out of 1.43 points

Question 4 1.43 out of 1.43 points

Question 5 1.43 out of 1.43 points

Question 6 1.43 out of 1.43 points

Question 7 0 out of 1.43 points

Question 8 1.43 out of 1.43 points

The donation is taxable at 6% in excess of P250,000.

The donation is subject to graduated rates.

Question 9 1.43 out of 1.43 points

Question 10 1.43 out of 1.43 points

Question 11 1.43 out of 1.43 points

Statement 1 is false but statement 2 is true

Statements 1 and 2 are true

Question 12 0 out of 1.43 points

Answers: Property 1, No; Property 2, No; Property 3, Yes; Property 4, Yes.

Property 1, Yes; Property 2, No; Property 3, Yes; Property 4, No.

Property 1, Yes; Property 2, No; Property 3, No; Property 4, Yes.

Question 13 1.43 out of 1.43 points

Answers: P0 for Mr. & Mrs.

P30,600 for Mr.; P6,600 for Mrs.

P30,000 for Mr.; P6,000 for Mrs.

Question 14 0 out of 1.43 points

Answers: Net share of the surviving spouse

Property previously taxed

Question 15 1.43 out of 1.43 points

Answers: It is founded on the obligation of the individual to the State.

It is an attribute of sovereignty

Question 16 1.43 out of 1.43 points

The beneficiary is third person and designation is irrevocable.

The beneficiary is the estate or executor/administrator and the designation is

Question 17 1.43 out of 1.43 points

Question 18 1.43 out of 1.43 points

Question 19 1.43 out of 1.43 points

Question 20 1.43 out of 1.43 points

The property should no longer be included in the gross estate.

Question 21 0 out of 1.43 points

Answers: Encourage growth of local industries

To single out business harmful to Philippine Society.

Question 22 1.43 out of 1.43 points

Question 24 1.43 out of 1.43 points

Question 25 1.43 out of 1.43 points

Question 26 0 out of 1.43 points

Question 27 1.43 out of 1.43 points

Answers: During the lifetime of the donor only.

During the lifetime of the donor and the donee.

None of the choices.

Question 28 1.43 out of 1.43 points

Answers: Capital gains tax

Real property Tax

Question 29 1.43 out of 1.43 points

Answers: Only the first statement is correct

Only the second statement is correct.

Both statements are correct.

Question 30 1.43 out of 1.43 points