1.

Distinctions between donor’s tax and estate tax, except

a. Period for payment of tax
b. Attachments to the tax return
c. Cause of transfer
d. Tax rate
2. Which statement is false? Shares of stocks shall be valued
a. If unlisted common shares- using adjusted net asset method
b. If unlisted preferred shares- par value
c. If unlisted common shares- book value
d. If listed shares- arithmetic mean of highest and lowest quoted prices in the stock exchange
on the valuation date
3. Which of the following is subject to donor’s tax?
a. Sale on promo of Toyota Fortuner to B by Toyota North Edsa. The regular price is P1.9
million, sold at P1.6 million
b. Sale of a residential lot. Market value is P1.5 million but sold for P1 million only.
c. A dying man sold his brand new car worth P1.8 million for P800,000 only
d. D. sale of commercial building valued at P20 million for P12 million only
4. Mr. and Mrs. Bedonio gave the following donations on Juky 1, 2018: community property was
donated to Regine, sister of Mr. Bedonio. The fair market value of property is P650,000. To
Junior, legitimate son on account of marriage, exclusive property of Mr. Bedonio worth
P150,000. The donor’s tax due on Mr. Bedonio
a. 9,000
b. 12,900
c. 13,500
d. 8,400
5. The donor’s tax return shall contain the following, except
a. All previous net gifts made by the donor
b. The deduction claimed and allowable
c. Name of the donee
d. Tax identification number (TIN) of donee
6. Donation o non-profit institution is tax exempt if the following requisites are complied, except
a. The institution is accredited by the Philippine Council for NGO Certification (PCNC)
b. Not more than 30% of the gift is used for administration purposes
c. The donor must inform the RDO of the donation whenever the amount at least P500,00
d. Devoting all income to the accomplishment of its purpose
7. Which of the following changes is not introduced on donor’s taxation by TRAIN Law?
a. Provides extension for the filing of tax return
b. Removes the exemption on dowries or gifts made on account of marriage
c. Simplification of the tax rate
d. Elimination of distinction on tax rate between relative and stranger donee.
8. Which of the following statement is false? If the decedent died in 2018
a. Filing of the estate tax return must be made within one year from decedent’s death
b. Notice of death is required
c. Estate tax may be paid on installment but within 2 years from decedent’s death
 d. A CPA certificate is required if the gross value of the estate is more than P5,000,000
9. In case of insufficiency of cash for the immediate payment of the estate tax due, the following
options are allowed, except
a. Cash installment within one year from the date of decedent’s death
b. Cash installment within two years from the date of decedent’s death
c. Cash installment within two years from the date of decedent’s death but subject to
penalties and interest on payments made after one year
d. Partial disposition of estate and application of the proceeds to the estate tax due
10. All of the following items, except one, are deductible in computing the net taxable estate of a
nonresident alien
a. Vanishing deduction
b. Share of the surviving spouse in the community property
c. Transfer for public use
d. Funeral expense incurred in the Philippines
11. The following conditions must be complied in order that a vanishing deduction shall be allowed
as deduction shall be allowed as deduction from gross estate, except
a. The property can be identified as having been received from a donor or prior decedent
b. The property can be identified as having been acquired in exchange for property so received
from a donor or prior decedent
c. The transfer tax on the previous transfer has been finally determined and paid
d. The prior transfer must have been either thru onerous or gratuitous transfer
12. If the decedent was a resident of Australia, the standard deduction is
a. 5,000,000
b. 500,000
c. 1,000,000
d. None
13. Requisites for deductibility of “claims against the estate” except
a. The liability represents a personal obligation of the deceased existing at the time of his
death
b. The liability must have been contracted by the deceased in good faith and for an adequate
consideration in money or money’s worth
c. The debt may or may not have been condoned
d. The claim must be a debt or claim which is valid in law and enforceable in court
14. A citizen-decedent died in 2018 with the following data: Gross Estate-Philippines; P14,200,000
Gross Estate-USA; P4,400,000 Allowable deductions (excluding standard deduction)-Philippines;
P6,400,000 Allowable deductions (excluding standard deduction)-USA; P2,200,000. Estate Tax
paid-USA; P150,000. How much is the estate tax payable in the Philippines assuming the
decedent is non-resident citizen?
a. 132,000
b. 168,000
c. 150,000
d. 300,000
15. A citizen-decedent died in 2018 with the following data: Gross Estate-Philippines; P14,200,000
Gross Estate-USA; P4,400,000 Allowable deductions (excluding standard deduction)-Philippines;
P6,400,000 Allowable deductions (excluding standard deduction)-USA; P2,200,000. Estate Tax
paid-USA; P150,000. How much is the estate tax payable in the Philippines assuming the
decedent is non-resident alien?
a. 150,000
b. 168,000
c. 300,000
d. 438,000