Tax 04 10 Estate Taxation

No. 125 Brgy.
San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : www.icarecpareview@gmail.com
Estate Tax Tax 04-10
1. The following are the characteristics of estate tax, except:

a. National
b. General
c. Ad valorem
d. Excise
e. indirect
2. First Statement: Estate tax is a tax imposed on a person’s exercise of his right to gratuitously
dispose his property upon his death.
Second Statement: Donor’s tax is a tax imposed on a person’s exercise of his right to gratuitously
dispose his property during his lifetime without regard to the donee.
a. True, True
b. True, False
c. False, False
d. False, True
3. First Statement: Succession is the mode of acquisition whereby the property rights and
obligation of a person is deemed transmitted to his heirs, successors or beneficiaries, upon his
death, either by his will or by operation of law.
Second Statement: Succession takes effect upon acceptance by the heirs of the properties left
behind by the decedent.
a. True, True
b. True, False
c. False, False
d. False, True
4. First Statement: Estate Tax is governed by the law prevailing at the time of death of the
decedent.
Second Statement: Estate tax is governed by the law prevailing at the time of distribution of the
properties to the heirs.
a. True, True
b. True, False
c. False, False
d. False, True
5. The following are the elements of succession, except:

a. Decedent
b. Heir
c. Estate
d. Executor
6. Keno Lecta, single, died on December 15, 2017. The administrator of his estate provided you
with the following information:
Family Home - Philippines Php25,000,000 Funeral Expenses Php300,000
Personal Property - Php15,000,000 Medical Expenses Php 600,000
Philippines
Claim against the Php7,000,000
estate
The Net taxable estate of the decedent shall be:

a. Php30,300,000
b. Php18,000,000
c. Php40,000,000
d. Php22,000,000
1|Pa g e AESCARTIN/TLOPEZ /JPAPA

No. 125 Brgy. San Sebastian
Mobile : 0927 283 8234
Telephone : (043) 723 8412
7. Keno Lecta, single, died on January 5, 2018. The administrator of his estate provided you with
the following information:
Family Home - Philippines Php25,000,000 Funeral Expenses Php300,000
Personal Property - Php15,000,000 Medical Expenses Php 600,000
Philippines
Claim against the Php7,000,000
estate
The Net taxable estate of the decedent shall be:
a. Php30,300,000
b. Php18,000,000
c. Php40,000,000
d. Php22,000,000
8. The estate tax is determined by multiplying 6% of:

a. Gross estate within and outside of the Philippines of a decedent who was Chinese and
resident of the Philippines.
b. Net taxable estate within the Philippines of a decedent who was resident and citizen of
China.
c. Gross estate within the Philippines of a decedent who was resident and citizen of China.
d. Net taxable estate within and outside of the Philippines of a decedent who was a resident
and citizen of China.
9. Intangible properties located in the Philippines is included in the gross estate of the following
except:
a. Resident and citizen of the Philippines
b. Resident of the Philippines and citizen of Japan
c. Resident and citizen of the United States of America, with reciprocity
d. Resident of Japan and citizen of the United states of America, with reciprocity
10. The following are intangible properties 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 issued by any foreign corporation sixty-five percent (65%) of
the business of which is located in the Philippines
d. Shares, obligations or bonds issued by any foreign corporation if such shares, obligations or
bonds have acquired business situs in the Philippines
e. Shares or rights in any partnership, business or industry established in the Philippines
11. The following are inclusions in the gross estate of the decedent, except
a. Donation mortis causa
b. Donation inter vivos
c. Transfer in contemplation of death
d. Transferred to the decedent under general power of appointment
12. Mr. Sulaiman, a certified public accountant, is in advanced age and terminally ill. With the
thought of his impending death he, sold his properties to his son. Two months after the sale, Mr.
Sulaiman died:
Selling Fair Market Value at Fair Market Value at
Price(consideration Sale death
received)
House & Lot, Marikina Php 50,000 Php5,000,000 Php5,000,050
Shares of stock of a Php 75,000 Php70,000 Php76,000
domestic corporation
Rolex Watch Ph50,000 Php75,000 Php45,000

Mobile : 0927 283 8234
Telephone : (043) 723 8412
How much should be added in Mr. Sulaiman’s gross estate.
a. Php4,950,000
b. Php25,000
c. Php5,145,000
d. d.Php5,975,000
13. Mr. Sulaiman, a certified public accountant, is in the prime of his life, he was so happy and
would like to share the joy with his son. In that frame of mind he sold his properties to his son.
Two months after the sale, Mr. Sulaiman died:
Selling Fair Market Value at Fair Market Value at
Price(consideration Sale death
received)
House & Lot, Marikina Php 50,000 Php5,000,000 Php5,000,050
Shares of stock of a Php 75,000 Php70,000 Php76,000
domestic corporation
Rolex Watch Ph50,000 Php75,000 Php45,000
How much should be added in Mr. Sulaiman’s gross estate.
a. Php4,950,000
b. Php25,000
c. None
d. Php5,975,000
14. How much is the gross gift if any:

a. Php4,950,000
b. Php25,000
c. None
d. Php5,975,000
15. Xavier died intestate on March 15, 2021, leaving the following properties:
Common stocks of DelaMonte Corporation (1,000 shares) - listed in the Philippine Stock
Exchange(PSE) (highest - P40; lowest - P39).
Common stocks of Tantamount Corporation (500 shares) - not listed in PSE. Cost - P5 per share;
book value – P50 per share.
Preferred stocks of Trinitron Inc. (4,000 shares) – not listed in the PSE. Cost – P95 per share; book
value – P65 per share; par value – P10 per share
Real properties (zonal value - P1,250,000; assessed value – P870,000)
The gross estate of Xavier is –
a. Php1,159,500
b. Php870,000
c. Php1,354,500
d. Php1,200,000
16. Wade Wilson died on February 14, 2021 leaving the following properties:
House and Lot in California, USA 1,000,000
Vacant Lot in Manila 2,000,000
Shares of stock in a domestic corp., 20% business in 100,000
the Philippines
Shares of stock in a foreign corp., 90% of the business 200,000
is located in the Philippines
Car in Manila 500,000
How much is the gross estate?

a. Php3,800,000
b.Php2,500,000
c. P2,600,000
d. Php2,800,000

Mobile : 0927 283 8234
Telephone : (043) 723 8412
17. Based on the preceding number, but assuming the decedent is a non-resident alien, the gross estate
is:
a. Php3,800,000
b. Php2,800,000
c. Php2,500,000
d. Php2,000,000
18. Continuing number 16 and the rule of reciprocity applies, the gross estate is:
a. P3,800,000
b. Php2,800,000
c. P2,500,000
d. Php2,000,000
19. 1st statement: Diego died giving Hector power to appoint a person who will inherit Diego’s house
and lot. Hector, however can only choose among Anton, Donita and Fidel. Hector decided to transfer
the property to Fidel. The transfer from Hector to Fidel is subject to estate tax.
2nd statement: During Angela’s lifetime, he decided to give Brian as gift her (Angela’s) car subject to
the condition that if Brian does not become a CPA within 3 years, Angela shall revoke the transfer. In
the second year however, Angela died. The car should form part of Angela’s gross estate.
a. True, True
b. True, False
c. False, False
d. False, True
20. As one of the properties whereby the decedent exercises owner’s interest, proceeds of life insurance,
on the life of the decedent is generally included in the gross estate, except
a. Beneficiary is the estate, executor or administrator and the designation of the beneficiary on the
life insurance policy is revocable;
b. Beneficiary is the estate, executor or administrator and the designation of the beneficiary on the
life insurance policy is irrevocable;
c. Beneficiary is any person other than the estate, executor or administrator and the designation of
the beneficiary is revocable;
d. Beneficiary is other than the estate, executor or administrator and the designation of the
beneficiary is irrevocable.
21. The list provided below is excluded from the gross estate, except:
a. Exclusive property of the surviving spouse;
b. Properties outside the Philippines of a non-resident alien decedent;
c. Intangible personal property outside of the Philippines of non-resident alien when the rule of
Reciprocity applies.
d. Share of the surviving spouse in the conjugal/community properties;
22. The following are transfers exempt from transfer tax, except
a. Transmission from the first heir or donee in favor of another beneficiary in accordance with the
desire of the predecessor
b. Transmission or delivery of the inheritance or legacy by the fiduciary heir or legatee to the
fideicommissary
c. The merger of usufruct in the owner of the naked title
d. All bequests, devises, legacies or transfers to social welfare, cultural and charitable institutions
23. The following losses are deductible from the gross estate, except:
a. Car donated mortis causa, struck by lightning 2 hours after the decedent’s death;
b. 2 carats diamond ring reported stolen by the decedent, a night before his death;
c. Php50,000 cash in bank of the decedent, reported stolen to the BIR 30 days after the decedent’s
death;
d. A diamond necklace fairly valued at the time of the decedent’s death at Php2,000,000. It was
reported stolen, 45 days after the decedent’s death. The diamond necklace was insured whereby
the insurance company paid Php1,500,000 to the estate, due to the loss of the diamond necklace.

Mobile : 0927 283 8234
Telephone : (043) 723 8412
24. The following are rules for deductibility of claims against the estate, except
a. The debt instrument must be duly notarized at the time the indebtedness was incurred such
promissory notes or contract of loans.
b. The debt instruments on debt granted by financial institution, where notarization is not part of
the business practice of the financial institution-lender, need not be not be notarized.
c. Duly notarized certification from the creditor as to the unpaid balance of the debt, including
interest as of the time of death.
d. A statement under oath, executed by the administrator or executor of the estate reflecting the
disposition of the proceeds of the loan if said loan was contracted within five (5) years prior to
the death of the decedent
25. The following are taxes deductible from the gross estate of a decedent, except
a. Estate tax
b. Real property tax accrued in the year of death, paid before death
c. Income tax on income earned before death and remaining unpaid
d. Unpaid donor’s tax on property donated before death
26. The following are the conditions for deductibility of the family home, except
a. The family home must be the actual residence of the decedent and his family at the time of his
death certified as such by the Barangay Captain of the locality where the family home is located.
b. The decedent must be a resident or citizen of the Philippines.
c. The total value of the family home must be included as part of the gross estate of the decedent.
d. Allowable deduction must be in an amount equivalent to the current fair market value of the
family home as declared or included in the gross estate, or to the extent of the decedent’s
interest (whether conjugal/community or exclusive) but not exceeding Php1,000,000.
27. The following are the requisites for deductibility of retirement pay received by the decedent as a
consequence of the latter’s death, pursuant to Republic Act 4917.
a. The retirement benefit received is in accordance with a reasonable private benefit plan
maintained by the employer.
b. The retiring employee has been with the same employer for a period of at least ten (10) years.
c. The retiring employee is at least sixty – five (65) years of age.
d. The retirement benefit is to be received by the employee only once.
28. The following are characteristics of estate taxation of a non-resident alien, except:
a. The gross estate shall comprise of properties located within the Philippines only.
b. Not allowed to claim family home deductions.
c. Not allowed to claim vanishing deductions.
d. Allowed deduction for expenses, losses, indebtedness, taxes, etc.
29. The following are the deductions allowed to the estate of a non-resident alien decedent, except
a. Property previously taxed A.K.A Vanishing deductions
b. Transfers for public use
c. Net share of the surviving spouse in the net conjugal/community property
d. Standard deduction of Php500,000
e. Full ELITE
30. Joe Bush was a citizen and resident of the United States of America. He died on January 5, 2020 leaving
behind the following properties with their respective fair market values:
Condominium Unit in BGC, Taguig 20,000,000
Cash in bank, Metrobank (MB), Taguig 500,000
Shares of stocks of SM Prime, Domestic Co. 750,000
Ferrari car, presently located in California, USA 11,250,000
House & Lot, California, USA 150,000,000
Funeral Expenses 200,000

Receivable from an insolvent person 300,000
Legacy in favor of City of Taguig,MB cash in bank 500,000

Mobile : 0927 283 8234
Telephone : (043) 723 8412
The Condominium unit was received by Joe, as a gift from a very generous benefactor, 15 months
before his death. Its fair market then was 15,000,000. At the time it was given to him it was subject
to a mortgage of P700,000 out of which P200,000 remain unpaid at the time of his death.
How much is the net taxable estate of Joe Bush
a. Php9,191,925.99 .
b.Php8,765,300
c. Php161,250,000
d.Php11,299,129.8
31. How much is the estate tax due

a. Php191,191,925.99
b. Php558,944.2
c. Php551,515.56
d. Php8,765,300
32 to 34 are based on the following:

Queena Leecho, married (celebrated 1 year before her death), died on January 2, 2018. She left behind 2
children, both from a previous marriage, and the following properties and obligations:
a. House and lot in Marikina, inherited 4 Php4,000,000
years and 2 months before her death
b. Farm lot in Nueva Ecija, received as a gift, 2,000,000
3 years and 4 months before death
c. Shares of of San Miguel Corporation, 750,000
inherited from Father 3 months before
her death
d. Car 500,000
e. Commercial Building 12,000,000
f. Receivable from an insolvent person 200,000
g. Diamond Ring 1,000,000
h. Cash in Bank 2,000,000
Funeral Expenses Php200,000, while Judicial Expenses amount to Php350,000. The House and lot in
Marikina was the place where the decedent and her family resides.
The fair market value of the house and lot in Marikina, at the time of inheritance from the previous owner,
was Php3,000,000 and subject to a mortgage of Php500,000 at the time. By the time of her death, the
remaining unpaid mortgage amount to Php100,000.
32. Assuming the regime of Absolute Community of property, the net taxable estate amounts to:
a. Php2,042,338.53
b. Php3,357,661.47
c. Php22,450,000
d. Php6,750,000
33. The final tax on the estate, assuming the heirs decided to withdraw the cash in bank prior to the
payment of the estate tax.
a. Php120,000
b.Php180,000
c.Php300,000
d.Php250,0000

Mobile : 0927 283 8234
Telephone : (043) 723 8412
34. Assuming the regime of absolute community of property and assuming further that final tax on the
cash in bank was paid, the amount of cash in bank to be included in the determination of the net
taxable estate.
a. Php2,000,000
b.Php1,880,000
c.Php1,940,000
d. Php0
35. Decedent who is married with a surviving spouse and one legitimate child and two illegitimate
children, left the following properties.
Real properties P3,000,000

Family home 1,000,000
Other real property (exclusive) 2,000,000
Family lot (exclusive) 400,000
Funeral expenses 300,000
Taxes and losses 1,300,000
Medical expenses 1,000,000
Assuming the decedent died on January 5, 2018, what is the total net taxable estate:
a. P1,250,000
b. ( P2,150,000)
c. c.P1,150,000
d. d. P2,450,000
36. Don Fortunato, a widower, died in May, 2011. In his will, he left his estate of P100 million to his four
children. He named his compadre, Don Epitacio, to be the administrator of the estate. When the BIR
sent a demand letter to Don Epitacio for the payment of the estate tax, he refused to pay claiming
that he did not benefit from the estate, he not being an heir. Forthwith, he resigned as administrator.
As a result of the resignation, who may be held liable for the payment of the estate tax?
a. Don Epitacio since the tax became due prior to his resignation.
b. The eldest child who would be reimbursed by the others.
c. All the four children, the tax to be divided equally among them.
d. The person designated by the will as the one liable.
37. The estate of the following deceased persons may claim credit for estate taxes paid to a foreign
country except for a:
a. Filipino citizen residing in California
b. Filipino national residing in Marikina
c. Korean national residing in Hong Kong
d. Chinese national residing in Baguio
38. George Robinson, an American residing in the Philippines died and left behind substantial properties
in and outside of the Philippines. The administrator of his estate provided you with the following
information.
Net Taxable Estate, Philippines Php10,000,000 Estate Tax paid in Japan Php100,000
Net Taxable Estate, Germany 5,000,000 Estate Tax paid in Germany 500,000
Net Taxable Estate, USA 3,000,000
Net Taxable Estate, Japan 2,000,000
The foregoing Net Taxable Estate values are already net of allowable deductions.
Considering the foregoing, how much is the estate tax due, after credit.
a. Php1,200,000
b. Php600,000
c. Php800,000
d. Php400,000

Mobile : 0927 283 8234
Telephone : (043) 723 8412
39. First Statement – Notice of death of the decedent shall be filed within 2 months from the time of
death.
Second Statement – Estate tax returns showing a gross estate exceeding a value of Php5,000,000 shall
be supported with a statement duly certified by a Certified Public Account.
a. True, True
b. True, False
c. False, False
d. False, True
40. First Statement – The estate tax return shall be filed within one (1) year from the approval by the Court
of the project of partition of the estate.
Second Statement – the Commissioner of any Revenue Officer authorized by the former, shall have
the authority to grant in meritorious cases, a reasonable extension, not exceeding thirty (30) days, for
filing the return.
a. True, True
b. True, False
c. False, False
d. False, True
41. First Statement – The Commissioner, for any reason he may see fit, may extend the time for payment
of the estate tax not to exceed five (5) years in case the estate is being settled through the courts, or
two (2) years in case the estate is being settled out of court.
Second Statement – Where the request for extension is by reason of negligence, intentional disregard
of rules and regulations, or fraud on the part of the taxpayer, the Commissioner may grant an
extension subject to 50% surcharge of the amount due.
a. True, True
b. True, False
c. False, False
d. False, True
42. First Statement – If an extension is granted, the Commissioner or his duly authorized representative
may require the executor, or administrator, or beneficiary, as the case may be, to furnish a bond in
such amount, not exceeding double the amount of the tax and with such sureties as the Commissioner
deems necessary, conditioned upon the payment of the said tax in accordance with the terms of the
extension.
Second Statement – Any amount paid after the statutory due date of the tax, but within the extension
period, shall be subject to interest but no surcharge.
a. True, True
b. True, False
c. False, False
d. False, True
43. First statement- In case of insufficiency of cash, the estate tax may be paid in installments within two
(2) years from the date of filing of the estate tax return.
Second Statement – The frequency (i.e., montly, quarterly, semi-annually or annually), deadline and
amount of each installment shall be indicated in the estate tax return, subject to prior approval by the
BIR.
a. True, True
b. True, False
c. False, False
d. False, True
44. First Statement – The heirs are allowed to withdraw from the decedent’s bank account without
presenting proof of payment of the estate tax, i.e., eCAR issued by the CIR or his duly authorized
representative, provided the withdrawal will be subjected to a final withholding tax of six percent
(6%) of the amount to be withdrawn.
Second Statement - Cash in bank, withdrawn within 1 year from the death of the decedent, and
subjected to the 6% withholding tax, is no longer required to be added in the gross estate in the course
of filing the estate tax return.
a. True, True
b. True, False
c. False, False

Mobile : 0927 283 8234
Telephone : (043) 723 8412
d. False, True
45. First Statement – An estate tax amnesty rate of six percent (6%) shall be imposed on each decedent’s
total net taxable estate at the time of death without penalties, provided that the minimum estate amnesty
tax for the transfer of each decedent shall be Five Thousand Pesos (Php5,000).
Second Statement – The estate tax amnesty shall cover the estate of those who have died in 2017 earlier
and can only be availed until June 14, 2023 or 2 years from the effectivity date of RR 6-2019 and as
extended `by RA 11569 .
a. True, True
b. True, False
c. False, False
d. False, True
46. Query: Is the BIR authorized to collect estate tax deficiencies by the summary remedy of levy upon
and sale of real properties of the decedent without first securing the authority of the court sitting in
probate over the supposedwill of the decedent?
Answer 1: Yes. The BIR is authorized to collect estate tax deficiency through the summary remedy of
levying upon and sale of real properties of a decedent, without the cognition and authority of the
court sitting in probate over the supposedwill of the deceased, because the collection of estate tax is
executive in character. As such the estate tax is exempted from the application of the statute of non-
claims, and this is justified by the necessity of government funding, immortalized in the maxim that
taxes are the lifeblood of the government.
Answer 2: Yes, if the tax assessment has already become final, executory and enforceable. The
approval of the court sitting in probate over the supposed will of the deceased is not a mandatory
requirement for the collection of the estate tax. The probate court is determining issues which are
not against the property of the decedent, or a claim against the estate as such, but is against the
interest or property right which the heir, legatee, devisee, etc. has in the property formerly held by
the decedent.
a. Both answers are correct
b. Only answer 1 is correct
c. Only answer 2 is correct
d. Both answers are incorrect
That in all things God will be glorified

Tax 04 10 Estate Taxation

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Tax 04 10 Estate Taxation

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No. 125 Brgy.

Estate Tax Tax 04-10

1. The following are the characteristics of estate tax, except:

5. The following are the elements of succession, except:

The Net taxable estate of the decedent shall be:

1|Pa g e AESCARTIN/TLOPEZ /JPAPA

8. The estate tax is determined by multiplying 6% of:

10. The following are intangible properties in the Philippines, except:

2|Pa g e AESCARTIN/TLOPEZ /JPAPA

How much should be added in Mr. Sulaiman’s gross estate.

14. How much is the gross gift if any:

How much is the gross estate?

3|Pa g e AESCARTIN/TLOPEZ /JPAPA

4|Pa g e AESCARTIN/TLOPEZ /JPAPA

Funeral Expenses 200,000

5|Pa g e AESCARTIN/TLOPEZ /JPAPA

31. How much is the estate tax due

32 to 34 are based on the following:

e. Commercial Building 12,000,000

f. Receivable from an insolvent person 200,000

g. Diamond Ring 1,000,000

h. Cash in Bank 2,000,000

6|Pa g e AESCARTIN/TLOPEZ /JPAPA

Real properties P3,000,000

7|Pa g e AESCARTIN/TLOPEZ /JPAPA

8|Pa g e AESCARTIN/TLOPEZ /JPAPA

That in all things God will be glorified

9|Pa g e AESCARTIN/TLOPEZ /JPAPA

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