NAME:
SECTION:
GENERAL INSTRUCTION: PLEASE HAVE A SUMMARY
OF YOUR ANSWERS IN A SEPARATE SHEET OF
PAPER. STRICTLY FOLLOW INSTRUCTIONS.
MULTIPLE CHOICE: Choose the best answer. Use
capital letters. (1pt)
1. Which is false about succession:
A. The successor inherits all the transmissible
property of a decedent including his liabilities.
B. The successor can be made liable for the
obligations of the decedent beyond the value of
the asset he received.
C. In succession, fruits and credits maturing
after death of the decedent pass to the heirs
even if they were not subject to estate tax.
D. In succession, the successor can refuse the
inheritance.
2. Which of the following forms of non-taxable
transfers may be subject to transfer tax in the
future?
A. Void transfer
B. Quasi-transfer
C. Incomplete transfer
D. All of these
3. The following are transactions and acquisitions
exempt from transfer tax except:
A. Transmission from the first heir or donee in
favor of another beneficiary in accordance with
the desire of the predecessor.
B. Transmission or delivery of the inheritance or
legacy by the fiduciary heir or legatee to the
fideicommissary.
C. The merger of usufruct in the owner of the
naked title.
D. All bequests, devises, legacies, or transfers
to social welfare, cultural and charitable
institutions.
4. One of the following is a conjugal property of the
spouses under CPG:
A. That which is brought to the marriage as his
or her own.
B. That which each acquires during the marriage
by inheritance.
C. The fruits of an exclusive property
received during the marriage
D. That which is purchased with the exclusive
property of the wife.
5. Which is not an exclusion in gross estate?
A. Private retirement benefits
B. Accruals from SSS
C. GSIS benefits
D. War damage payments
6. Mrs. A appointed Ms. B as fiduciary heir over an
agricultural land which Ms. B shall turn over to Mr.
C upon Ms. B’s death. Which is incorrect?
A. The land must be included in Mrs. A’s gross
estate upon her death.
XTAX2 – TRANSFER TAXES - QUIZ
DATE:
B. The land must be excluded in Ms. B’s
gross estate upon her death.
C. The land must be excluded in Mr.
C’s gross estate upon his death.
D. None of these
7. If a loan is found to be merely an accommodation
loan where the loan proceeds went to another
person, which of the following is incorrect?
A. The value of the unpaid loan must be included
as a receivable of the estate.
B. If there is a legal impediment to recognize the
same as receivable of the estate, said unpaid
obligation shall not be allowed as a deduction
from gross estate.
C. In all instances, the mortgaged property to the
extent of the decedent’s interest therein, should
always form part of the gross estate.
D. None of the choices
8. In filing the estate tax return of a decedent under
TRAIN law, a CPA certificate is required when:
A. Gross estate exceeds P2,000,000.00
B. Gross estate exceeds P5,000,000.00
C. Gross estate exceeds P10,000,000.00
D. Gross estate reaches P2,000,000.00
9. Which of the following is not a deduction of gross
gifts?
A. Unpaid mortgage on the donated property
assumed by the donee.
B. Unpaid real estate tax on the property donated
and assumed by the donee.
C. Unpaid donor’s tax on the donated property
assumed by the donee.
D. Diminution on the donated property specifically
provided by the donor.
10. All of the following, except one, are exempt from
donor’s tax
A. Donation directly given to the victims of the
typhoon Yolanda.
B. Donation to Philippine Normal University
C. Donations to the Tubbataha Reefs Natural Park
D. Donation to People’s Survival Fund
11. The income of donated properties before marriage
are
A. Exclusive properties under conjugal
partnership
B. Exclusive properties under absolute community
of property
C. Common properties under conjugal partnership
of gains.
D. A and C
12. The following are general principles of estate
deduction, except:
A. The substantiation rule
B. Matching principle
C. No double classification rule
D. None of the above
 13. Losses of separate properties of the surviving
spouse are deductible against
A. Separate property of the decedent
B. Common property of the spouses
C. Both A and B
D. Neither A nor B.
14. Which obligation is deductible against gross
estate?
A. Bank loans acquired for the medication of the
decedent
B. Obligations of the surviving spouse
C. Income tax of the decedent before death
D. Real property tax of the separate property of
the decedent accrued after death
15. Amounts receivable by the estate of the deceased, his
executor or administrator as an insurance under
the policy taken by the decedent upon his own life
is:
A. Excluded from the gross estate
B. Part of the gross estate regardless of
designation
C. Part of the gross estate if the beneficiary is
revocable
D. Part of the gross estate if the beneficiary is
irrevocable.
TRUE or FALSE: In capital letters, write A – if only
statement 1 is true; B – if only statement 2 is true; C –
if both statements are true; D – if both statements are
false. (2pts)
C 1. S1: Regardless of the relationship of the donee,
donations made by the donor shall be subject to
6% donor’s tax rate in excess of P250,000
exempt gifts.
S2: Donations made by or in favor of juridical
persons shall be subject to 6% donor’s tax rate in
excess of P250,000 exempt gifts.
A 2. S1: Tax credit for foreign estate tax is allowed to
minimize the effect of multiplicity of situs.
S2: Tax credit for foreign estate tax is allowed to
maximize the effect of indirect double taxation.
D 3. S1: The property regime of the spouses may be
agreed upon during the marriage.
S2: The properties of a spouse without any
descendant from a prior marriage are communal
properties.
B 4. S1: All forms of gratuitous transmission of property
while the donor is living is considered donation
inter-vivos.
S2: In taking inventory, properties are generally
presumed common unless proven as exclusive of
either spouse.
A 5. S1: Claims against insolvent persons may be
charged against exclusive properties.
S2: Non-resident alien decedents can claim only
a proportion of losses, indebtedness, taxes and
transfers for public purpose.
B 6. S1: Transfer tax accrues at the time of transfer of
the decedent’s property or rights to the heir.
S2: In default of compulsory heirs and relatives until
fifth consanguinity, the government shall inherit the
estate of the decedent.
B 7. S1: The donee-decedent of a special power of
attorney only holds the property in trust, hence,
the property shall be part of the donee-
decedent’s gross estate.
S2: A revocable transfer shall be included in the
gross estate of the decedent-transferor even
though the power to revoke was not exercised.
B 8. S1: The power of the decedent-transferor to
revoke terms may be exercised just once.
S2: Special deductions do not reduce the
hereditary estate of the heirs.
D 9. S1: The power of appointment is “general”
when the power of appointment authorizes the
donee of the power to appoint only from a
designated class of persons other than himself.
S2: Taxes and obligations accruing after death
are deductible from gross estate.
C 10. S1: Non-resident alien decedents can claim
deductions for losses, indebtedness, and taxes.
S2: Properties subject to mortgage are
presented in gross estate at an amount gross of
the mortgage.
A 11. S1: If either of the spouse did not consent to the
donation of a conjugal or communal property,
there is only one donor for purposes of donor’s
tax.
S2: A donation can be both part of the gross gift
of the donor and taxable income of the donee.
A 12. S1: In donor’s tax, no extension of time for filing
the donor’s tax return is allowed.
S2: If on any one date, there is a donation by
one donor to his relative and another one to a
stranger, there will be two separate donor’s tax
return to be filed.
D 13. S1: Properties received by way of gifts are
exclusive properties.
S2: All fruits accruing before or after the
marriage are conjugal properties.
C 14. S1: Non-listed common stocks are valued at
their book value.
S2: Transfers in contemplation of death are
donations made intervivos but are actually
donation mortis causa.
A 15. S1: As a rule, all properties of the donor existing
at the point of death constitute his donation
mortis causa.
S2: Donations to donees abroad are exempt
from donor’s tax.