Question 20

Based on the preceding number, if the consideration is consideration is fictitious, how much will form part
of gross estate?

a.
P1,000,000
b.
P2,000,00
c.
P5,000,000
d.
nil

Question 21
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:

a.
Excluded from the gross estate
b.
Part of the gross estate whether the beneficiary is revocable or irrevocable
c.
Part of the gross estate if the beneficiary is revocable
d.
Part of the gross estate if the beneficiary is irrevocable

Question 22
Which of the following is NOT included in the gross estate?

a.
Revocable transfer where the consideration is not sufficient
b.
Revocable transfer where the power of revocation was not exercised
c.
Proceeds of life insurance where the beneficiary designated is the estate and the designation
is revocable
d.
Proceeds of life insurance where the beneficiary designated is the mother and the designated
is irrevocable

Question 23
Pedro died in 2019. The following are the requisites in claiming casualty losses in the computation of
estate tax, except:

a.
Losses are not compensated by insurance
b.
Losses must not have been claimed as deduction in the computation of income tax
c.
Losses were incurred not later than one (1) year from the time of death
d.
None of the above

Question 24
Various types of losses incurred by a decedent's estate were as follows:

 Loss due to typhoon, a day before the decedent's death , P1,000,000

 Loss due to shipwreck, six (6) months after the decedent's death, P500,000

 Loss due to robbery, 1 1/2 years after the decedent's death, P2,000,000

 Gambling losses before death, P2,250,000

How much is the deductible "losses" from the gross estate of the decedent?

a.
P500,000
b.
P2,250,000
c.
P2,500,000
d.
P1,500,000

Question 25
Which of the following statements pertaining to the duly notarized certification from the creditor as to
the unpaid balance of debt by the decedent including interest as of the date is correct?

a.
If the creditor is a corporation, it shall be signed by President, or Vice-President or other principal officer
of the corporation
b.
If the creditor is a partnership, it shall be signed by any of the general partners
c.
If the creditor is a bank or other financial institutions, it shall be executed by the branch manager of
the bank/financial institution which monitors and manages the loan of the debtor-decedent
d.
All of the above

Question 26
Which of the following is not a requirement in claiming unpaid mortgage as deduction for estate tax purposes?

a.
The fair market value of the mortgaged property, net of the mortgage indebtedness, should be
included in the gross estate
b.
The fair market value of the mortgaged property undiminished by the mortgage indebtedness
should be included in the gross estate
c.
The loan must be contracted in good faith
d.
The loan must be for an adequate and full consideration

Question 27
Mr. Pobre is in need of money to start a small business. However, he has no property to secure a loan
from a bank so he sought the help of his good friend Mr. Rich. Mr. Rich then obtained a loan from Banco de Uro amounting to
1,000,000 secured by a real property worth 2,000,000 to accommodate the request of Mr. Pobre. If subsequent to securing the
loan and delivering to Mr. Pobre the proceeds, Mr. Rich died, how much gross estate should be reported?

a.
P1,000,000
b.
P2,000,000
c.
P3,000,000
d.
nil

Question 28
A piece of land with a fair market value of P10,000,000 at the time of the decedent's death was included
in the gross estate. Upon closer examination, you found out that the value used was net of P2,000,000 unpaid mortgage on the
same land. How much should have been included and deducted from the gross estate?

Amount to
amount to be included be
deducted
a. P12,000,000 P2,000,000
b. P10,000,000 2,000,000
c. P10,000,000 0
d. P8,000,000 0

a.
a
b.
b
c.
c
d.
d

Question 29
Which of the following properties of Namayapa Nha who died December 1, 2020 is subject to
vanishing deduction?

Property 1: Rest House in Tagaytay purchased in 2014

Property 2: Commercial lot and building inherited from her mother in 2013 where the estate tax thereon had not been paid
Property 3: Donation from a friend in 2015
Property 4: Property won in lottery six (6) months before death

Property 1 Property 2 Property 3 Property 4

a. No No Yes Yes
b. No No Yes No
c. Yes Yes No Yes
d. Yes Yes No No

a.
a
b.
b
c.
c
d.
d

Question 30
The following statements are correct regarding standard deduction under the TRAIN LAW, except:

a.
A deduction in the amount of P5,000,000 shall be allowed as an additional deduction without need of substantiation
b.
The full amount of P5,000,000 shall be allowed as deduction for the benefit of the decedent
c.
Standard deduction is not allowed to decedents who are nonresident aliens
d.
None of the above

Question 31
All of the following items are allowed as deductions against exclusive portion of the estate, except

a.
Taxes
b.
Claims against insolvent persons
c.
Share of the surviving spouse
d.
Family Home

Question 32
Which of the following statements is incorrect in connection with family home deduction under the
TRAIN Law?

a.
Family home deduction shall be allowed only if such family home is situated in the Philippines
b.
The total value of the family home must be included as part of the gross estate of the decedent
c.
For purposes of availing family home deduction, a person may constitute only one family home
d.
Family home deduction may not be lower than P10,000,000

Question 33
Allowable deduction for non-resident alien decedent who died on or after January 1, 2018:

a.
Funeral expenses
b.
Vanishing deduction
c.
family home
d.
all of the above

Question 34
Statement 1: The estate tax imposed under the Tax Code shall be paid by the executor or administrator
before the delivery of the distributive share in the inheritance to any heir or beneficiary.

Statement 2: The executor or administrator of an estate has the primary obligation to pay the estate tax but the heir or
beneficiary has subsidiary liability for paying that portion of the distributive share in the value of the total net estate.

a.
Only statement 1 is correct
b.
Only statement 2 is correct
c.
Both statements are correct
d.
Both statements are incorrect

Question 35
The Commissioner, on meritorious cases, may extend the time for payment of estate tax:

In case the
In case the estate is settled
estate is settled
Judicially extra-judicially
a. 5 years 5 years
b. 2 years 2 years
c. 5 years 2 years
d. 2 years 5 years

a.
a
b.
b
c.
c
d.
d

Question 36
A died leaving a house and lot to B on April 1, 2018 which was questioned by C and it is under litigation but,
subsequently, the parties executed an extra-judicial settlement. The last day for filing the estate tax return is:

a.
April 30, 2018
b.
April 30, 2019
c.
October 1, 2018
d.
March 31, 2019

Question 37
In filing the estate tax return under the TRAIN Law, a CPA certificate is required when:

a.
Gross estate exceeds P2,000,000
b.
Gross estate exceeds P5,000,000
c.
Gross estate exceeds P10,000,000
d.
Gross estate reaches P2,000,000

Question 38
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 estate tax shall be granted where the request for extension is by reason of
negligence, intentional disregard of rules and regulation, or fraud on the part of the taxpayer.

a.
Only statement 1 is correct
b.
Only statement 2 is correct
c.
Both statements are correct
d.
Both statements are incorrect

Question 39
Can the estate tax be paid in installment?

a.
Yes, in case the available cash of the estate is not sufficient to pay its estate tax liability
b.
Yes, at the option of the heirs with corresponding interest charges.
c.
No, tax is the lifeblood of the State, hence, collection cannot be delayed under any circumstance
d.
None of the above

Question 40
Which of the following statements is correct?

a.
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 any share, obligation, bond or right by way of gift
inter-vivos or mortis causa, legacy or inheritance, unless can eCAR is issued by the Commissioner or his duly authorize
representative.
b.
In instances where the deposit accounts have been duly inlcuded 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.
c.
The withdrawal describe in letter b shall no longer be subject to 6% withholding tax by the bank
d.
All of the above

Question 41
An act of liberality whereby one disposes gratuitously a thing or right in favor of another who accepts it

a.
succession
b.
occupation
c.
donation
d.
tradition

Question 42
Which of the following statements is correct?

a.
A transfer is gratuitous or without consideration and accordingly qualifies as a donation, if no economic
benefit measurable in money or money's worth flowed to the transferor from the transferee.
b.
A gratuitous transfer is always subject to donor's tax.
c.
A donation on which the donor's tax was not paid is not a valid donation.
d.
Title to the donated real property can be transferred to the donee in the Register of Deeds even if the
donor's tax on the donation had not been paid.

Question 43
Donor's tax is:
a.
A property tax
b.
A personal tax
c.
A business tax
d.
An excise tax

Question 44
Donor's tax is a _____

I. Excise tax
II. Direct Tax
Personal
III.
Tax
Property
IV.
tax

a.
I and II only
b.
I, II and III only
c.
I, II and IV only
d.
I, II, III and IV

Question 45
Statement 1: Donor's tax shall not apply unless and until there is a completed gift.
Statement 2: The transfer of property by gift is perfected from the moment the donor knows of the
acceptance by the donee; it is completed by delivery, either actually or constructively, of the donated property to the donee.

a.
Only statement 1 is correct
b.
Only statement 2 is correct
c.
Both statements are correct
d.
Both statements are incorrect

Question 46
Which of the following statements regarding donation of an immovable property is correct?

a.
The donation must be in a public document specifying therein the property donated.
b.
The acceptance may be made in the same Deed of Donation or in a separate public instrument, but it
shall not take effect unless it is done during the lifetime of the donor.
c.
If the acceptable is made in a separate instrument, the donor shall be notified thereon in an authentic
form, and this step shall be noted in both instruments.
d.
All of the above

Question 47
The following are the requisites of a donation for purposes of the donor's tax, except one.

a.
Capacity of the donor
b.
Capacity of the donee
c.
Delivery of the subject matter or gift
d.
Donative intent

Question 48
Statement 1: "Consideration" means money or equal value or some goods or service capable of being
evaluated in money.

Statement 2: Donative intent is required only in indirect gift.

a.
Only I is correct
b.
Only II is correct
c.
Both I and II are correct
d.
Both I and II are incorrect

Question 49
For donations made prior to 2018, where the donee or beneficiary is a stranger, the tax payable by the
donor shall be:

a.
30% of the gross gifts
b.
30% of the net gifts
c.
Based on the graduated rates with the first P100,000 net gift exempt or 30%
d.
Based on the graduated rates with the first P100,000 net gift exempt or 30% of the net gifts
whichever is higher.

Question 50
Which of the following is subject to donor's tax?
I. Condonation of debt due to rendition of service
II. Condonation of debt made by a corporation in favor of its shareholders

III. Contribution in cash or in kind to any candidate, political party or coalition of parties for campaign purposes.

a.
I only
b.
II only
c.
II and III only
d.
None of the above

Question 51
If an individual performs services for a creditor who in consideration thereof cancels the debt, the
cancellation of indebtedness may amount to a

a.
Gift
b.
Capital constribution
c.
Donation inter vivos
d.
Payment of income

Question 52
Statement 1: Where a 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, the amount by which the fair market value of the property
at the time of transfer exceeded the actual consideration shall be deemed gift and shall be included in the computaion of gifts
made during the calendar year.

Statement 2: A donation inter-vivos by the husband and the wife jointly during the marriage is a donation of each spouse to the
extent of one-half that will require separate computations for two donor's taxes, under whichever property relationship exists
between the spouses.

a.
Statement 1 & 2 are false
b.
Statement 1 is true but statement 2 is false
c.
Statement 1 is false but statement 2 is true
d.
Statements 1 & 2 are true

Question 53
On January 15, 2018, Jose Sold a vacant lot held as capital asset for P600,000 to his brother-in-law. The
fair market value per Tax Declaration and zonal value per BIR of the land were P750,000 and P1,000,000
repectively. respectively. The sale subject to:

a.
Subject to donor's tax only of P9,000
b.
Subject to capital gains tax only of P60,000
c.
Subject to donor's tax of P9,000 and capital gains tax of P60,000
d.
Subject to donor's tax of P9,000 or capital gains tax of P60,000 at the option of Jose

Question 54
On January 15, 2018, Jose Sold a real property used in business for P600,000 to his brother-in-law. The
fair market value per Tax Declaration and zonal value of the land per BIR were P750,000 and P1,000,000
repectively. respectively. The sale subject to:

a.
Subject to donor's tax only of P9,000
b.
Subject to capital gains tax only of P60,000
c.
Subject to donor's tax of P9,000 and capital gains tax of P60,000
d.
Subject to donor's tax of P9,000 or capital gains tax of P60,000 at the option of Jose

Question 55
Which of the following is subject to donor's tax?

a.
Those made between persons who were guilty of adultery or concubinage at the time of donation.
b.
Those made the conceived and unborn children
c.
Those made to a public officer by reason of his office
d.
Those made between husband and wife during their marriage

Question 56
In 2018, Caroline donated P500,000 to her friend Vicky who was getting married. Caroline gave no other
gift during the calendar year. What is the donor's tax implication on Caroline's donation?

a.
The P10,000 portion of the donation is exempt as dowry since it was given in consideration of marriage
b.
Caroline donated to a stranger, hence she shall pay a 30% donor's tax on herdonation in excess for P205,000
c.
Caroline shall pay a 6% donor's tax on her donation in excess of P250,000
d.
The donation is exempt under the TRAIN Law
Question 57
All of the following except one are exempt from gift tax under special laws.

a.
Donation to Integrated Bar of the Philippines
b.
Donation to Development Academy of the Philippines
c.
Donation to Philippine Institute of Certified Public Accountants
d.
Donation to International Rice Research Institute

Question 58
Donor's tax credit is not allowed to a donor who is a:

a.
Resident citizen
b.
Non-resident citizen
c.
Resident alien
d.
Non-resident alien

Question 59
Any person making a donation (whether direct or indirect), unless the donation is specifically exempt under
the Tax Code or other special laws, is required, for every donation, to accomplish under oath a donor's tax return. The return
shall set forth:

I. Each gift made during the calendar year which is to be included in gifts
II. The deductions claimed and allowable
III. Any previous net gifts made during the calendar year
IV.Name of the donee

a.
I and II only
b.
I, II and III only
c.
I, II and IV only
d.
All of the above

Question 60
For donations made on or after January 1, 2018, the donor's tax return shall be filed within:

a.
Six (6) months after the date the gift is made or completed
b.
two (2) months after the date the gift is made or completed
c.
thirty (30) days after the date the gifts is made or completed
d.
One year after the date the gift is made or completed

Question 61
Unless the commissioner otherwise permits, the donor's tax return shall be filed and the tax paid to the:

Authorized agent bank (AAB) under the jurisdiction of the RDO where the doctor is domiciled
I.
at the
time of the transfer
Revenue District Officer or Revenue Collection of Officer having jurisdiction over the place
II.
where
the donor is domiciled at the time of the transfer
III. Office of the Commissioner if the donor has no legal residence in the Philippines
Philippine Embassy or Consulate in the country where the donor is domiciled at the time of the
IV.
transfer
or the transfer or directly to the office of the Commissioner, in the case of gifts made by a
nonresident.

a.
I and II only
b.
I, II and III only
c.
I, II and IV only
d.
All of the above

Question 62
Manolo, a resident of Dagupan City donated to Arturo a Property in Laoag City. The donor's tax is P40,000.
The Deed of donation was signed in the residence of Arturo in Baguio City. The donor's tax return must be filed in

a.
Dagupan City
b.
Laoag City
c.
Baguio City
d.
Quezon City

Question 63
Statement 1: Only one return shall be filed for several gifts/donations) by a donor to the different donees
on the same date.

Statement 2: If the donation involves conjugal/community property, each spouse shall file separate return corresponding to
his/her respective share in the conjugal/community property.

a.
True, False
b.
False, True
c.
True, True
d.
False, False

Question 64
Statement 1: 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 (2) separate donor's tax return to be filled.

Statement 2: In donor's tax, no extension of time for filling the donor's tax return is allowed.

a.
Statement 1 is correct, while Statement 2 is wrong
b.
Statement 1 is wrong, while statement 2 is correct
c.
Both statements are correct
d.
Both statements are wrong