SET A a.

Properties located abroad

b. Properties in the Philippines
Multiple Choice: c. Properties transferred irrevocably
1. What is subject to transfer tax? d. Properties located abroad
a. Gratuitous transfers 11. What is included in the gross estate?
b. Onerous Transfers a. Income accruing after death
c. Merger of Usufruct in the owner of b. Income accruing before death
naked title c. Expenses paid after death
d. Transfer by way of bona fide sales d. Expenses paid before death
2. Transfer taxes are 12. Proceeds of life insurance where the child is
a. Regressive taxes the beneficiary is included in the gross
b. Indirect taxes estate if
c. Specific taxes a. Designation is revocable
d. Revenue taxes b. Designation is irrevocable
3. Statement 1: All Philippine transfers are c. In all circumstances
subject to transfer taxes 13. Which is not included in the gross estate
Statement 2: All foreign transfers are a. Revocable transfers
subject to transfer taxes b. Transfers in contemplation of death
Which statement is generally correct? c. Transfer under special power of
a. Statement 1 appointment
b. Statement 2 d. All of these
c. Both Statements 14. Proceeds of life insurance designated by the
d. Neither Statements decedent to his wife is excluded in the gross
4. S1: the amount of transfer tax is dependent estate if
upon the value of the thing transferred a. Designation is revocable
S2: Donor’s tax is imposed upon the b. Designation is irrevocable
properties of a decedent while estate tax is c. In all circumstances
imposed on a donor 15. Which of the following is not an element of
a. S1 is true succession?
b. S2 is true a. Decedent
c. Both S1 & S2 are true b. Estate
d. Neither statements are true c. Heir
5. Transfer tax on donation mortis causa d. Administrator
applies to a: 16. Inheritance does not include:
a. Natural person a. Property
b. Juridical person b. Rights not extinguished by death
c. Both a & b c. Public office
d. None of the above d. Obligations not extinguished by death
6. Which is taxable on all transfers regardless 17. Which of the following is an intangible
of location personal property within the Philippines?
a. Resident citizen A. Franchise exercised in the US
b. Resident alien B. Shares in a domestic business partnership
c. Non-resident citizen C. Bonds issued by an American corporation
d. All of the above D. Stocks issued by foreign corporation with
7. Who may be exempt on transfers based on business situs in the Philippines
reciprocity? a. B only
a. Resident alien b. B and D
b. Non-resident citizen c. All of the above
c. Non-resident alien d. None of the above
d. Both b and c 18. An act of liberality whereby one disposes
8. Which is an intangible personal property? gratuitously of a thing or right in favor of
a. Franchise another who accepts it
b. Stock a. Succession
c. Bonds b. Occupation
d. All of the above c. Donation
9. Which of these is a donation mortis causa d. Transmission
a. Donation in contemplation of death 19. A tax imposed on the gratuitous transfer of
b. Revocable donation pre-terminated by property between two or more persons
death who are living at the time the transfer was
c. Sale for an adequate consideration made
d. All of the above a. Estate tax
10. The gross estate of a resident citizen does b. Gift tax
not include c. Income tax
 d. Transfer tax d. Remission of debt where the debtor did
20. The gift tax is imposed on the transfer of not render services in favor of the
property and not on the property itself. creditor
Thus, it is classified as 27. S1: when the done is exempt from income
a. Privilege tax tax, the donation made by a taxable
b. Property tax individual is also tax-exempt
c. Donee’s tax S2: proceeds of life insurance policy on the
d. Ad valorem tax life of the decedent where designation is
21. Lai went to Sarah resort and was given a irrevocable is always subject to donor’s tax
prize of P50,000 by the resort for being its a. Both are true
1,000th guest. Is the prize subject to donor’s b. Only S1 is true
tax? c. Both are false
a. Yes, because it was given gratuitously by d. Only S2 is true
Sarah resort 28. S1: the agreement between the donor and
b. No, because it was given for business the done that the latter shall assume the tax
motives, thus not based on liberality of burden is binding on the gov’t
the donor S2: there is no donor’s tax in a donation on
22. The following are requisites of donation account of marriage if the marriage did not
except: actually take place
a. Capacity of the donor a. Both are true
b. Capacity of the done b. Only S1 is true
c. Delivery of the gift c. Both are false
d. Donative intent d. Only S2 is true
23. What constitutes a taxable gift? 29. Which is false? The gross gift of a non-
a. Creditor’s gratuitous discharge of a resident alien
debtor’s obligation a. Will include all intangible personal
b. One day rent free use of another’s properties regardless of location
property b. Will included all intangible personal
c. A gratuitous transfer by a minor properties situated in the Philippines
d. An agreement to make a future transfer c. With reciprocity, will not include all
not supported by a consideration intangible personal properties
24. Jennifer donated shares of stocks of Ruby regardless of location
Corporation to Richelle on April 20, 2019 d. Without reciprocity, will not include all
with a right to revoke it. The property was intangible personal properties situated
delivered on April 25, 2019. On June 20, outside the Philippines
2019, Jennifer relinquished the right to 30. All except one are exempt from donor’s tax
revoke. For purposes of donor’s tax, the a. Donating to the Philippine Red Cross
gross value of the property given should be b. Donating to an accredited NGO
its value on: c. Donating directly to the frontliners
a. April 20 d. Donation to the Vice President’s Office
b. April 25 for a public purpose
c. June 20
d. Median of values at April 20 and June 20 Annie donated the following properties:
25. Which is not taxable?
a. a Filipino donated a land located in the Land in the US P250,000
US to a nonresident alien Land & Bldg., Sulu 175,000
b. Dexter made a gift of P400,000 to his Car in the US 225,000
daughter on account of her marriage Jewelry in Manila 45,000
c. A multimillionaire giving his wife a Shares of stock, corporation based in the US
diamond ring worth Php300,000 as a 60,000
birthday gift Accounts Receivable, debtor is in Manila
d. Mondares, Harold and Roel are the heirs 25,000
of Joshua. Mondares renounced his 31. If Annie is a resident citizen, the gross gift is:
share in favor of no specific assignee a. P780,000
26. One of the following is subject to donor’s b. 295,000
tax: c. 245,000
a. Donation inter vivos to Iglesia ni Cristo d. 220,000
b. Donation Inter vivos to International 32. Gross gift if Annie is a nonresident alien
Rice Research Institute without reciprocity
c. Cash contribution to a political a. P780,000
candidate, duly reported to the b. 295,000
COMELEC c. 245,000
d. 220,000
33. Gross gift if Annie is a nonresident alien Kobe sold his car to his friend Covid for
with reciprocity: P600,000 when its value was P900,000. The
a. P780,000 property was acquired by Kobe for
b. 295,000 P1,100,000.
c. 245,000
d. 220,000 40. Compute for the gross gift, if any:
34. Which is false a. 500,000
a. Donor’s tax also applies to juridical b. 200,000
persons c. 300,000
b. Quasi transfers are exempt from d. 0
donor’s tax 41. Compute for the net gift, if any:
c. Encumbrances on the property donated, a. 300,000
when assumed by the donor, is b. 250,000
deductible for donor’s tax purposes c. 50,000
d. As a rule, donation between husband d. 0
and wife during marriage is void
35. Which is not a factor in determining taxable
gifts?
a. Identification of transfers included in
the gross gift
b. Application of exempt transfers
c. Subtraction of allowed deductions
d. Multiplying net gift by the applicable
rates
36. Relativo donated P500,000 to Heredero
Corp. The donor owns 80% of the stock of
the donee-corporaiton. The donor’s tax due
on the donation is:
a. 15,000
b. 45,000
c. 30,000
d. None

When Alcala’s son, Biscocho, was married

last 2018 to his childhood sweetheart,
Calalang, Alcala gave as wedding gift, a
residential lot worth P1.5Million to his son,
and a brand new car to Calalang worth
P700,000. At the time of donation, the lot
was mortgaged with Metrobank for
P200,000 which was assumed by Biscocho.

37. Compute for the gross gift of Alcala

a. 2,000,000
b. 2,200,000
c. 1,500,000
d. 1,750,000
38. Compute for the net gift of Alcala
a. 2,000,000
b. 2,200,000
c. 1,500,000
d. 1,750,000

39. In 2018, Otelo gave a cash gift of P220,00 to

his cousin, John. Otelo has not given any
other gifts or donation for the said year but
donated to his daughter the same amount
in 2019. Based on this, Otelo is
a. Liable to pay donor’s tax
b. Liable to pay donee’s tax
c. Exempted from paying donor’s tax
d. Exempted from paying donee’s tax