Cleah Charity A.

Waskin
Kim Amor Corillo
Nilfa Lozarito

ACC321
BUSINESS TAXATION
ESTATE TAX QUESTIONNAIRE

. Estate tax is
a. A property tax because it is imposed on
the
property transmitted by the decedent to his
heirs.
b. An indirect tax because the burden of
paying the
tax is shifted on the executor or any of the
heirs of
the decedent
c. An excise tax because the object of
which is the
shifting of economic benefits and
enjoyment of
property from the dead to the living
d. A poll tax because it is also imposed on
residents
of the Philippines whether Filipino citizens
or not
2. Estate tax accrues from:
a. The moment of death of the decedent
b. The moment the notice of death is filed
c. The moment the estate tax return is filed
d. The moment the properties are delivered
to the
heirs
3. The taxpayer in estate tax is:
a. The decedent
b. The estate as a juridical entity
c. The heirs or succession
d. The administrator or executor
4. Who has the personal liability to pay
estate tax?
a. The decedent
b. The estate as a juridical entity
c. The heirs or successors
d. The administrator or executor
5. One of the following is subject
to estate tax on
properties situated within the Philippines
only
a. resident citizen c. nonresident citizen
b. resident alien d. nonresident alien
6. The personal properties of a non-
resident, not citizen
of the Philippines, would not be included
in the gross
estate if:
a. The intangible personal property is in
the
Philippines
b. The intangible personal property is in
the
Philippines and the reciprocity clause of
the estate
tax law applies
c. The tangible personal property is in the
Philippines
d. The personal property is shares of stock
of a
domestic corporation 80% of whose
business is in
the Philippines.
7. All of the following are
considered intangible in the
Philippines, except:
a. Franchise which must be exercised in
the
Philippines
b. Shares, obligations or bonds issued by
any
corporation or sociedad anonima organized
or
constituted in the Philippines in
accordance with its
laws
c. Shares, obligations or bonds by any
foreign
corporation 75% of the business of which
is
located in the Philippines
d. Shares, obligations of bonds issued by
any foreign
corporation if such shares, obligations or
bonds
have acquired a business situs in the
Philippines;
. Estate tax is
a. A property tax because it is imposed on
the
property transmitted by the decedent to his
heirs.
b. An indirect tax because the burden of
paying the
tax is shifted on the executor or any of the
heirs of
the decedent
c. An excise tax because the object of
which is the
shifting of economic benefits and
enjoyment of
property from the dead to the living
d. A poll tax because it is also imposed on
residents
of the Philippines whether Filipino citizens
or not
2. Estate tax accrues from:
a. The moment of death of the decedent
b. The moment the notice of death is filed
c. The moment the estate tax return is filed
d. The moment the properties are delivered
to the
heirs
3. The taxpayer in estate tax is:
a. The decedent
b. The estate as a juridical entity
c. The heirs or succession
d. The administrator or executor
4. Who has the personal liability to pay
estate tax?
a. The decedent
b. The estate as a juridical entity
c. The heirs or successors
d. The administrator or executor
5. One of the following is subject
to estate tax on
properties situated within the Philippines
only
a. resident citizen c. nonresident citizen
b. resident alien d. nonresident alien
6. The personal properties of a non-
resident, not citizen
of the Philippines, would not be included
in the gross
estate if:
a. The intangible personal property is in
the
Philippines
b. The intangible personal property is in
the
Philippines and the reciprocity clause of
the estate
tax law applies
c. The tangible personal property is in the
Philippines
d. The personal property is shares of stock
of a
domestic corporation 80% of whose
business is in
the Philippines.
7. All of the following are
considered intangible in the
Philippines, except:
a. Franchise which must be exercised in
the
Philippines
b. Shares, obligations or bonds issued by
any
corporation or sociedad anonima organized
or
constituted in the Philippines in
accordance with its
laws
c. Shares, obligations or bonds by any
foreign
corporation 75% of the business of which
is
located in the Philippines
d. Shares, obligations of bonds issued by
any foreign
corporation if such shares, obligations or
bonds
have acquired a business situs in the
Philippines;
.1. Estate tax is
a. A property tax because it is imposed on the property transmitted by the
decedent to his heirs.
b. An indirect tax because the burden of paying the tax is shifted on the executor
or any of the heirs of the decedent
c. An excise tax because the object of which is the shifting of economic benefits
and enjoyment of property from the dead to the living
d. A poll tax because it is also imposed on residents of the Philippines whether
Filipino citizens or not

2. Estate tax accrues from:

a. The moment of death of the decedent
b. The moment the notice of death is filed
c. The moment the estate tax return is filed
d. The moment the properties are delivered to the heirs

3. The taxpayer in estate tax is:

a. The decedent
b. The estate as a juridical entity
c. The heirs or succession
d. The administrator or executor

4. Who has the personal liability to pay estate tax?

a. The decedent
b. The estate as a juridical entity
c. The heirs or successors
d. The administrator or executor

5. One of the following is subject to estate tax on properties situated within

the Philippines only
a. Resident citizen b. Resident alien c. Nonresident citizen d. Nonresident alien
6. The personal properties of a non-resident, not citizen of the Philippines, would not be
included in the gross estate if:

a. The intangible personal property is in the Philippines

b. The intangible personal property is in the Philippines and the reciprocity clause
of the estate tax law applies
 c. The tangible personal property is in the Philippines
d. The personal property is shares of stock of a domestic corporation 80% of
whose business is in the Philippines.

7. All of the following are considered intangible in the Philippines, except:

a. Franchise which must be exercised in the Philippines

b. Shares, obligations or bonds issued by any corporation or sociedad anonima
organized or constituted in the Philippines in accordance with its laws
c. Shares, obligations or bonds by any foreign corporation 75% of the business of
which is located in the Philippines
d. Shares, obligations of bonds issued by any foreign corporation if such shares,
obligations or bonds have acquired a business situs in the Philippines;

8. Part of the estate left by A are preference shares of MERALCO. The shares are
listed and traded in the Philippine Stock Exchange. Which of the following rules of
valuation is correct?

a. The preference shares will be valued using the arithmetic mean between the
highest and lowest quotation at the date nearest the date of death, if none is
available on the date of death itself.
b. The preference shares will be valued based on their book value.
c. The preference shares will be valued based on their par value.
d. The preference shares will be valued based on their fair market value as
determined by the Commissioner of Internal Revenue

9. Lolo Sot, 95 years old, was diagnosed of various ailments on January 1,

2018. Motivated by thought of death, he decided to dispose all his properties to his
children and relatives. He executed a last will and testament disposing all his
properties in the Philippines to his children. On the same day, he made donations inter-
vivos to his other relatives as to his properties in the United States. Lolo Sot died
a month after disposing all his properties. Should the properties donated by
Lolo Sot to his other relatives be included in his gross estate upon his death?

a. No, because they were not his properties anymore at the time of death.
b. Yes, because the donations were donations mortis-causa and should be
governed by the rules on estate taxation.
c. No, if the donor’s tax had been paid already on the donations.
 d. No, because they were not transfers in contemplation of death, since
the donations were not simultaneous with the execution of the last will and
testament.

10. The following are subject to estate tax, except

a. While still alive, the decedent donated property where the donation will take
effect at the time of his death.
b. The decedent transferred a property in the regular course of the business
operation.
c. The decedent donated a property with the condition that he/she will enjoy the
fruits of such while he/she is still alive.
d. The decedent transferred a property to take effect after his/her death

11. One of the following donations is not included as part of gross estate

a. Revocable transfers
b. Transfers with reservation of certain rights
c. Transfers under special power of appointment
d. Transfers in contemplation of death

12. Statement 1: Aguinaldo devised in his will a piece of land; naked title to Bonifacio
and usufruct to Rizal for as long as Rizal lives, thereafter to Bonifacio. The
transmission from Aguinaldo to Bonifacio and Rizal is subject to estate tax but the
merger of the usufruct and the naked title to Bonifacio upon the death of Rizal is
exempt.
Statement 2: Erap devised in his will real property to his brother Alfredo who is
entrusted with the obligationto preserve and transmit the property to Isko, son of
Alfredo, when Isko becomes of age. The transmission from Alfredo to his son Isko is
subject to tax.
a. Only statement 1 is correct
b. Only statement 2 is correct
c. Both statements are correct
d. Both statements are incorrect

13. Binat died on April 13, 2018, leaving the following properties:
Common stocks of Sunchamp Corporation (2,000shares) - listed in the
Philippine Stock Exchange (highest - P40; lowest - P39).
Common stocks of AgriNurture Corporation (1,500shares) - not listed in the stock
exchange. Cost - P50per share; book value - P45 per share.

Preferred stocks of Greenergy Inc. (3,000 shares) –not listed in the stock
exchange. Cost - P70 per share; book value - P60 per share; par value – P50 per share

Car (cost - P600,000; book value - P350,000; market value - P400,000)

Real properties (zonal value - P120,000; assessed value - P72,000)

The gross estate of Binat is –

a. P817,500 b. P824,000 c. P816,500 d. P846,50010.

14. Lina Lamay, Filipina, died in Syria leaving the following properties:
House and Lot in Syria 1,000,000

Vacant Lot in Manila 2,000,000

Shares of stock in a domestic corp., 60% of the business is located in

thePhilippines100,000

Shares of stock in a foreign corp., 70%of the business is located in

thePhilippines200,000Car in Manila 500,000

How much is the gross estate?

a. P3,800,000 b. P2,500,000 c. P2,600,000 d. P2,000,000

15. Based on the preceding number, but assuming the decedent is a non-
resident alien, the gross estate is:

a. P3,800,000 b. P2,500,000 c. P2,600,000 d. P2,000,000

15. Based on the preceding number and assume the rule on reciprocity applies, the
gross estate is: a. P3,800,000 b. P2,500,000 c. P2,600,000 d. P2,000,000

17. How much is the net taxable estate under Conjugal Partnership of Gains?
a. P3,926,000 b. P3,426,000 c. P6,426,000 d. P1,348,000.

18. How much is the net taxable estate under Absolute Community of
Property? a. P4,836,000 b. P1,174,000 c. (P2,174,000) d. P2,174,000
19. The following data were taken from the estate of Oslo:
 Claims against Juan (insolvent), P100,000, fully uncollectible.
 Claims against Manuel (insolvent), P200,000, 50%collectible.
 Claims against a person who absconded,P300,000.
 Based on the data provided,

how much should be deducted from Pedro’s gross estate?

a. P600,000 b. P200,000 c. P500,000 d. 650,000

20. Which statement is incorrect about claims against insolvent persons?

a. They must be included in the gross estate even if uncollectible.

b. They must be duly notarized as a rule.
c. The deduction is only the uncollectible portion.
d. The insolvency of the debtor must be established.

21. 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 1million pesos secured by a real property worth 2million pesos 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. P3,000,000 c. P2,000,000 d. 250,000

22. Which of the following is not deductible from the gross estate of a decedent?
I. Income taxes on income received after death
II. Property taxes not accrued before death
III. Estate Tax

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

23. Based on the preceding number, if the house is also an exclusive property, how
much is the deductible family home allowance?

a. P8,000,000 b. P4,000,000 c. P12,000,000 d. P10,000,000

24. The following statements are correct regarding standard deduction, 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 non-resident
aliens
.d. None of the above

25. One of the following cannot be claimed as deduction from the gross estate of a non-
resident alien decedent:

a. Vanishing deduction
b. Family home allowance
c. Share of surviving spouse
d. Transfer for public use

26. In computing the estate tax, which of the following shall not be allowed to
claim tax credit for taxes paid abroad?

a. Resident alien decedent

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

27. 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

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

a. Gross estate exceeds P 2,000,000

b. Gross estate exceeds P 5,000,000
c. Gross estate exceeds P10,000,000
d. Gross estate reaches P 2,000,000
29. A died leaving a house and lot to B on March 31, 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. September 30, 2018 c. April 30, 2019 d. March 31, 2019

30. The last day for the payment of estate tax may be extended, until;

a. March 31, 2021

b. September 30, 2019
c. September 30, 2021
d. April 30, 2022

Answer Key

1. C
2. A
3. B
4. D
5. D
6. B
7. C
8. A
9. B
10. B
11. C
12. A
13. B
14. A
15. C
16. B
17. D
18. B
19. B
20. B
21. B
22. B
23. D
24. C
25. B
26. B
27. A
28. B
29. D
30. A