Taxation Exams

TAXATION EXAMS 5/25/20, 8:52 PM
TAXATION EXAMS
Email address *
keouhprosario@yahoo.com
What is subject to transfer tax? * 2 points
a. Gratuitous transfers
b. Onerous Transfers
c. Merger of Usufruct in the owner of naked title
d. Transfer by way of bona ?de sales
Transfer taxes are * 2 points
a. Regressive taxes
b. Indirect taxes
c. Speci?c taxes
d. Revenue taxes
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Statement 1: All Philippine transfers are subject to transfer taxes. Statement 2: All 2 points
foreign transfers are subject to transfer taxes. Which statement is generally correct?
*
a. Statement 1
b. Statement 2
c. Both statements
d. Neither statements are true
S1: the amount of transfer tax is dependent upon the value of the thing transferred. 2 points
S2: Donor’s tax is imposed upon the prope!ies of a decedent while estate tax is
imposed on a donor *
a. S1 is true
b. S2 is true
c. Both S1 & S2 are true
d. Neither statements are true
Transfer tax on donation mo!is causa applies to a: * 2 points
a. Natural person
b. Juridical person
c. Both a & b
d. None of the above
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Which is taxable on all transfers regardless of location * 2 points
a. Resident citizen
b. Resident alien
c. Non-resident citizen
d. All of the above
Who may be exempt on transfers based on reciprocity? * 2 points
a. Resident citizen
b. Resident alien
c. Non-resident citizen
d. All of the above
Which is an intangible personal prope!y? * 2 points
a. Franchise
b. Stock
c. Bonds
d. All of the above

Which of these is a donation mo!is causa * 2 points
a. Donation in contemplation of death
b. Revocable donation pre-terminated by death
c. Sale for an adequate consideration
d. All of the above
The gross estate of a resident citizen does not include * 2 points
a. Properties located abroad
b. Properties in the Philippines
c. Properties transferred irrevocably
d. Properties located abroad
What is included in the gross estate? * 2 points
a. Income accruing after death
b. Income accruing before death
c. Expenses paid after death
d. Expenses paid before death
Proceeds of life insurance where the child is the bene"ciary is included in the gross 2 points
estate if *
a. Designation is revocable
b. Designation is irrevocable
c. In all circumstances

Which is not included in the gross estate * 2 points
a. Revocable transfers
b. Transfers in contemplation of death
c. Transfer under special power of appointment
d. All of these
Proceeds of life insurance designated by the decedent to his wife is excluded in the 2 points
gross estate if *
a. Designation is revocable
b. Designation is irrevocable
c. In all circumstances
Which of the following is not an element of succession? * 2 points
a. Decedent
b. Estate
c. Heir
d. Administrator
Inheritance does not include: * 2 points
a. Property
b. Rights not extinguished by death
c. Public oSce

Which of the following is an intangible personal prope!y within the Philippines? A. 2 points
Franchise exercised in the US B. Shares in a domestic business pa!nership C. Bonds
issued by an American corporation D. Stocks issued by foreign corporation with
business situs in the Philippines *
a. B only
b. B and D
c. All of the above
d. None of the above
An act of liberality whereby one disposes gratuitously of a thing or right in favor of 2 points
another who accepts it *
a. Succession
b. Occupation
c. Donation
d. Transmission
A tax imposed on the gratuitous transfer of prope!y between two or more persons 2 points
who are living at the time the transfer was made *
a. Estate tax
b. Gift tax
c. Income tax
d. Transfer tax

The gi# tax is imposed on the transfer of prope!y and not on the prope!y itself. 2 points
Thus, it is classi"ed as *
a. Privilege tax
b. Property tax
c. Donee’s tax
d. Ad valorem tax
Lai went to Sarah reso! and was given a prize of P50,000 by the reso! for being its 2 points
1,000th guest. Is the prize subject to donor’s tax? *
a. Yes, because it was given gratuitously by Sarah resort
b. No, because it was given for business motives, thus not based on liberality of the donor
The following are requisites of donation except: * 2 points
a. Capacity of the donor
b. Capacity of the done
c. Delivery of the gift
d. Donative intent
What constitutes a taxable gi#? * 2 points
a. Creditor’s gratuitous discharge of a debtor’s obligation
b. One day rent free use of another’s property
c. A gratuitous transfer by a minor
d. An agreement to make a future transfer not supported by a consideration

Jennifer donated shares of stocks of Ruby Corporation to Richelle on April 20, 2019 2 points
with a right to revoke it. The prope!y was delivered on April 25, 2019. On June 20,
2019, Jennifer relinquished the right to revoke. For purposes of donor’s tax, the gross
value of the prope!y given should be its value on: *
a. April 20
b. April 25
c. June 20
d. Median of values at April 20 and June 20
Which is not taxable? * 2 points
a. a Filipino donated a land located in the US to a nonresident alien
b. Dexter made a gift of P400,000 to his daughter on account of her marriage
c. A multimillionaire giving his wife a diamond ring worth Php300,000 as a birthday gift
d. Mondares, Harold and Roel are the heirs of Joshua. Mondares renounced his share in favor of
no speci?c assignee
One of the following is subject to donor’s tax: * 2 points
a. Donation inter vivos to Iglesia ni Cristo
b. Donation Inter vivos to International Rice Research Institute
c. Cash contribution to a political candidate, duly reported to the COMELEC
d. Remission of debt where the debtor did not render services in favor of the creditor

S1: when the donee is exempt from income tax, the donation made by a taxable 2 points
individual is also tax-exempt. S2: proceeds of life insurance policy on the life of the
decedent where designation is irrevocable is always subject to donor’s tax *
a. Both are true
b. Only S1 is true
c. Both are false
d. Only S2 is true
S1: the agreement between the donor and the done that the la$er shall assume the 2 points
tax burden is binding on the gov’t. S2: there is no donor’s tax in a donation on account
of marriage if the marriage did not actually take place *
a. Both are true
b. Only S1 is true
c. Both are false
d. Only S2 is true
Which is false? The gross gi# of a non-resident alien * 2 points
a. Will include all intangible personal properties regardless of location
b. Will include all intangible personal properties situated in the Philippines
c. With reciprocity, will not include all intangible personal properties regardless of location
d. Without reciprocity, will not include all intangible personal properties situated outside the
Philippines

All except one are exempt from donor’s tax * 2 points
a. Donating to the Philippine Red Cross
b. Donating to an accredited NGO
c. Donating directly to the frontliners
d. Donation to the Vice President’s OSce for a public purpose
Annie donated the following prope!ies:Land in the US - P250,000;Land & Bldg., Sulu- 2 points
175,000;Car in the US- 225,000;Jewelry in Manila- 45,000;Shares of stock,

corporation based in the US - 60,000;Accounts Receivable, debtor is in Manila -
25,000. If Annie is a resident citizen, the gross gi# is: *
a. P780,000
b. 295,000
c. 245,000
d. 220,000
25,000. Gross gi# if Annie is a nonresident alien without reciprocity *
a. P780,000
b. 295,000
c. 245,000
d. 220,000
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25,000. Gross gi# if Annie is a nonresident alien with reciprocity: *
a. P780,000
b. 295,000
c. 245,000
d. 220,000
Which is not a factor in determining taxable gi#s? * 2 points
a. Identi?cation 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
Relativo donated P500,000 to Heredero Corp. The donor owns 80% of the stock of 2 points
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 sweethea!, 2 points
Calalang, Alcala gave as wedding gi#, a residential lot wo!h P1.5Million to his son, and
a brand new car to Calalang wo!h P700,000. At the time of donation, the lot was
mo!gaged with Metrobank for P200,000 which was assumed by Biscocho.
Compute for the gross gi# of Alcala *
a. 2,000,000
b. 2,200,000
c. 1,500,000
d. 1,750,000
When Alcala’s son, Biscocho, was married last 2018 to his childhood sweethea!, 2 points
Calalang, Alcala gave as wedding gi#, a residential lot wo!h P1.5Million to his son, and
a brand new car to Calalang wo!h P700,000. At the time of donation, the lot was
mo!gaged with Metrobank for P200,000 which was assumed by Biscocho.
Compute for the net gi# of Alcala *
a. 2,000,000
b. 2,200,000
c. 1,500,000
d. 1,750,000
In 2018, Otelo gave a cash gi# of P220,00 to his cousin, John. Otelo has not given any 2 points
other gi#s 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

Kobe sold his car to his friend Covid for P600,000 when its value was P900,000. The 2 points
prope!y was acquired by Kobe for P1,100,000. Compute for the gross gi#, if any: *
a. 500,000
b. 200,000
c. 300,000
d. 0
Kobe sold his car to his friend Covid for P600,000 when its value was P900,000. The 2 points
prope!y was acquired by Kobe for P1,100,000. Compute for the net gi#, if any: *
a. 500,000
b. 200,000
c. 300,000
d. 0
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TAXATION EXAMS 5/25/20, 8:52 PM

What is subject to transfer tax? * 2 points

c. Merger of Usufruct in the owner of naked title

d. Transfer by way of bona ?de sales

Transfer taxes are * 2 points

https://docs.google.com/forms/u/1/d/1C_ jfarOYsqPy4IZPS3yQzqt2F…nse?viewresponse=ACYDBNgNJ8KZQmZKxMX5zZQLzgfY6-LgDV-Q1SxX2IPe Page 1 of 13

d. Neither statements are true

c. Both S1 & S2 are true

d. Neither statements are true

Transfer tax on donation mo!is causa applies to a: * 2 points

d. None of the above

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Which is taxable on all transfers regardless of location * 2 points

d. All of the above

Who may be exempt on transfers based on reciprocity? * 2 points

d. All of the above

Which is an intangible personal prope!y? * 2 points

d. All of the above

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Which of these is a donation mo!is causa * 2 points

a. Donation in contemplation of death

b. Revocable donation pre-terminated by death

c. Sale for an adequate consideration

d. All of the above

The gross estate of a resident citizen does not include * 2 points

a. Properties located abroad

b. Properties in the Philippines

c. Properties transferred irrevocably

d. Properties located abroad

What is included in the gross estate? * 2 points

a. Income accruing after death

b. Income accruing before death

c. Expenses paid after death

d. Expenses paid before death

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Which is not included in the gross estate * 2 points

b. Transfers in contemplation of death

c. Transfer under special power of appointment

Which of the following is not an element of succession? * 2 points

Inheritance does not include: * 2 points

b. Rights not extinguished by death

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c. All of the above

d. None of the above

who are living at the time the transfer was made *

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a. Yes, because it was given gratuitously by Sarah resort

The following are requisites of donation except: * 2 points

a. Capacity of the donor

b. Capacity of the done

c. Delivery of the gift

What constitutes a taxable gi#? * 2 points

a. Creditor’s gratuitous discharge of a debtor’s obligation

b. One day rent free use of another’s property

c. A gratuitous transfer by a minor

d. An agreement to make a future transfer not supported by a consideration

https://docs.google.com/forms/u/1/d/1C_ jfarOYsqPy4IZPS3yQzqt2…nse?viewresponse=ACYDBNgNJ8KZQmZKxMX5zZQLzgfY6-LgDV-Q1SxX2IPe Page 7 of 13

d. Median of values at April 20 and June 20

Which is not taxable? * 2 points

a. a Filipino donated a land located in the US to a nonresident alien

b. Dexter made a gift of P400,000 to his daughter on account of her marriage

One of the following is subject to donor’s tax: * 2 points

a. Donation inter vivos to Iglesia ni Cristo