1. (Estate Tax) Mr. Zeke Yeager, testator, appointed Mr.

Erwin Taichou as the

executor of the estate. Mr. Yeager was a citizen of Japan and a resident
of Buenos Aries, Japan. He was in Manila visiting his son when he died.
He owned a Mercedes sports car and had several bank deposits in the USA.
The executor asked you whether or not the car and the bank deposits in the
USA will still have to be declared as part of the Philippine gross estate
of Faustino Santos. Japan does not impose transfer taxes of any kind.
What answer will you give him?
a. The car and the bank deposits in the USA have to be declared as part
of the Philippine gross estate because the decedent was in Manila at
the time of his death and, as such, properties wherever situated are
included in the gross estate.
b. The car and the bank deposits in the USA need not be declared as part
of the Philippine gross estate because when Mr. Santos died he was a
non-resident alien.
c. The car and the bank deposits in the USA have to be declared as part
of the Philippine gross estate only when the decedent specified in his
will and testament that such properties must form part of his gross
estate.
d. The car and the bank deposits in the USA need not be declared as part
of the Philippine gross estate because Argentina does not impose
transfer tax of any kind.
2. (EstateTax) The amounts withdrawn from the deposit accounts of a
decedent subjected to the 6% final withholding tax imposed under
Section 97 of the NIRC, shall be:
a. Excluded from the gross estate for purposes of computing the estate tax.
b. Included from the gross estate for purposes of computing the estate tax.
c. Claimed as tax credit against estate tax due.
d. Claimed as deduction from the gross estate.

3. (Estate Tax) A property was transferred mortis causa. The following data
were gathered from the transaction:
Fair market value, time of transfer – P500,000
Fair market value, time of death – P300,000
Consideration received when transferred – P350,000

How much shall be included in the gross

estate?
a. P500,000
c. P150,000
b. P300,000
d. None of the choices

4. (Estate Tax) The following data pertain to a decedent who is a married man
with a surviving spouse died on February 1, 2019:
Conjugal real personal properties P 10,000,000
Conjugal personal properties (including P800,000 bank
deposit which was withdrawn and subjected to 6% final
withholding tax) 4,800,000
Exclusive family home 30,000,000
Conjugal ordinary deductions claimed (including P200,000
funeral expenses and P300,000 judicial expenses) 2,500,000
The taxable net estate is:
a. P42,000,000.
c. P27,000,000.
b. P32,000,000.
d. P21,000,000.
 5. The decedent is a resident unmarried head of family with the following data:
Real and personal properties P14,000,000
Family home 30,000,000
Ordinary deductions
Unpaid real estate tax 2,000,000

The taxable net estate is:

a. P 42,000,000.

c. P 27,000,000.
b. P 32,000,000.
d. P 23,000,000.

6. The decedent is a married man with a surviving spouse with the following data:
Conjugal real properties P 6,000,000
Conjugal family house 1,000,000
Exclusive family lot 400,000
Other exclusive properties 4,500,000
Conjugal ordinary deductions 1,500,000
Exclusive ordinary deductions 500,000
The taxable net estate is:
a. P 9,900,000.
c. P 3,500,000.
b. P 3,750,000.
d. P 1,250,000.

7. Using the same data in the preceding number, how much is the estate tax
payable?
a. P 594,000
c. P 210,000
b. P 225,000
d. P 75,000
8.(Estate Tax) Under the TRAIN, when is the time for filing of the
estate tax return?
a. Thirty (30) days from the decedent’s death
b. Two (2) months from the decedent’s death
c. Six (6) months from the decedent’s death
d. One (1) year from the decedent’s death

9.(Estate Tax) Which of the following statements is incorrect in connection

with cash installment payment of estate tax?
a. The cash installments shall be made within two (2) years from the date
of filing of the estate tax return.
b. The estate tax return shall be filed within one year from the date of
decedent’s death.
c. The frequency (i.e., monthly, quarterly, semi-annually or annually),
deadline and amount of each installment shall be indicated in the
estate tax return, subject to the prior approval by the BIR.
d. In case of lapse of two years without the payment of the entire tax
due, the remaining balance thereof shall be due and demandable without
the applicable penalties and interest.

10. (Estate Tax) Mr. Bertholdt died and was survived by his wife and two (2)
children, Faye and Faith. After getting her share in the conjugal property,
the surviving spouse renounced her share in the hereditary estate in favor
of Faith to the exclusion of Faye. Was the renunciation subject to donor’s
tax?
a. Yes, because the renunciation was made categorically in favor of
identified heir to the exclusion or disadvantage of the other co-
heirs.
b. No. because the renunciation was considered a general renunciation.
c. Yes, because , as a rule, renunciation of share in the hereditary
estate is always subject to donor’s tax.
d. No, because, as a rule, the surviving spouse cannot renounce her share
 in the hereditary estate.
11 to 13 are based on the following: A resident decedent, single, died
February 14, 2018. The estate’s decedent showed the following:
Real property in the Philippines P4,000,000.00
Personal property outside the Philippines 2,000,000.00
Proceeds of life insurance upon the life of
decedent, decedent’s estate designated
as 1,000,000.00
irrevocable beneficiary
Proceeds of life insurance, decedent’s
spouse 500,000.00
designated as irrevocable beneficiary
Medical expenses one year prior to
decedent’s death (including unpaid amount of 700,000.00
P400,000)
Funeral expenses (only P100,000 paid) 250,000.00

Claims against the estate 1,000,000.00

11. (Estate Tax) How much was the taxable net

estate?
a. P4,300,000.00
c. P1,000,000.00
b. P4,100,000.00
d. None of the choices

12. (Estate Tax) How much was estate tax

payable?
a. P443,000.00
c. P60,000.00
b. P388,000.00
d. None of the choices

13. (Estate Tax) How much were the total deductible items for
estate tax purposes?
a. P6,000,000.00
c. P1,700,000.00
b. P2,700,000.00
d. None of the choices

14. (Donor’s Tax) Under the TRAIN, the donor’s tax for each calendar
year shall be:
a. six percent (6%) computed on the basis of the total gifts made
during the calendar year.
b. six percent (6%) computed on the basis of the total gifts in
excess of Thee hundred thousand pesos (P300,000) exempt gift made
during the calendar year.
c. six percent (6%) computed on the basis of the total gifts
including those made in the previous calendar year in excess of
Two hundred fifty thousand pesos (P250,000) exempt gift made during
the calendar year.
d. six percent (6%) computed on the basis of the total gifts in
excess of Two hundred fifty thousand pesos (P250,000) exempt gift
made during the calendar year.

15. (Donor’s Tax) First statement: The computation of the donor’s tax is
on a cumulative basis over a period of one calendar year.
Second statement: Husband and wife are considered as separate and
distinct taxpayers for purposes of the donor’s tax.
a. Both statements are correct
b. Both statements are incorrect
c. Only the first statement is correct
d. Only the second statement is correct
16. (Donor’s Tax) Grisha Jegear donated P110,000.00 to her friend Faye who was
getting married. Grisha Jegear gave no other gift during the calendar
year. What is the donor's tax implication on Grisha’s donation?
a. The P100,000.00 portion of the donation is exempt since given in
consideration of marriage.
b. A P10,000.00 portion of the donation is exempt being a donation in
consideration of marriage.
c. Patricia shall pay a 6% donor's tax on the P110,000.00 donation.
d. The P110,000.00 donation is exempt from donor's tax.

17. (Donor’s Tax) Mr. Mike Zacharias transfers inter vivos a personal property
to his son on March 15, 2018. His son who lives in another province let his
father know that he is accepting the gift on March 31, 2018. The personal
property was delivered and received on April 15, 2018. When shall be the
last day to file the donor’s tax return and pay the donor’s tax to avoid
penalties?

a. April 14, 2018

c. May 15, 2018
b. April 30, 2018
d. None of the choices
18 to 20. are based on the following: The following donations during
the calendar year 2018 are made to relatives:
Date Amount
January 30, 2018 P 2,000,000
March 30, 2018 1,000,000
August 15, 2018 500,000
18. (Donor’s Tax) How much is the tax due on the gift made on January
30, 2018?
a. P 204,000
c. P 80,000
b. P 105,000
d. P 50,000
19. (Donor’s Tax) How much is the tax due on the gift made on March
30, 2018?
a. P 204,000
c. P 60,000
b. P 124,000
d. P 50,000

20. (Donor’s Tax) How much is the tax due on the gift made on August
15, 2018?
a. P 204,000
c. P 80,000
b. P 124,000
d. P 30,000

21. to 22. are based on the following: Mr. Levi Squad donated P500,000 to the
City of Manila and P100,000 to his best friend who graduated summa cum
laude.

21. (Donor’s Tax) For donor’s tax purposes, how much should be the gross
gifts?
a. P 600,000
c. P 400,000
b. P 500,000
d. None of the choices

22. (Donor’s Tax) For donor’s tax purposes, how much should be the
deductions?
a. P 500,000
 c. P 100,000
b. P 400,000
d. None of the choices
23. (Donor’s Tax) On one date, Porco made donations of property in the Philippines
to a non-stranger, and of property outside the Philippines to a stranger.
In taking a credit for the foreign donor’s tax paid, the credit shall be
against the Philippine donor’s tax on the:
a. donation to the non-stranger plus that to the stranger.
b. donation to the non-stranger.
c. donation to the stranger.
d. none of the options given.

24. (Donor’s Tax) On June 10, 2018 Ms. Ymir donated P50,000 cash to his
favorite grandson who is getting married on June 16, 2018. For donor’s tax
purposes the exempt dowry shall be:
a. P50,000.
c. P5,000.
b. P10,000.
d. none.
MiRen Jaeger, a resident of the Philippines but a citizen of Japan, died on November 20,
2018, with the following data pertaining to his estate:
 A parcel of land was acquired for P1,200,000 from his father, Eren, for
P1,100,000 at the time when the fair market value thereof was P1,500,000. At
the time of MiRen Jaeger’s death, the property had a fair market value of
P2,000,000.
 The same land is where the family home was constructed for a total cost of
P1,500,000. At the time of death, the house had a fair market value of
only P200,000.
 MiRen Jaeger transferred a car with a fair market value at the time of
transfer of P300,000, but was sold to his illegitimate son for P200,000, 2
years prior to his death. At the time of death, the car had a fair market
value of P180,000.
 Bank deposit in the Philippine Branch of a US Bank amounting to P300,000.
 House and lot located in Japan with a fair market value of P2,000,000.
This was inherited by MiRen Jaeger 2 years ago from his parents. At the
time of inheritance, the house and lot had a fair market value of
P1,500,000. Estate tax in Japan amounting to P50,000 was paid for said
property.
 Also inherited from his parents 2 years ago, land located in the
Philippines which had a fair market value of P1,200,000 at the time of
inheritance but was subjected to a mortgage to secure a loan with an
outstanding balance of P500,000. At the time of MiRen Jaeger’s death, the
remaining balance of the loan is P200,000; and an independent assessor
determined the fair market value of the land to be at P2,000,000, as per
zonal valuation of the BIR, it was valued at P1,500,000, and per local
city assessor it was valued at P1,300,000.
 At the time of MiRen Jaeger’s death, life insurance proceeds taken by him
on his life amounted to P1,000,000. Boruto’s illegitimate daughter was the
beneficiary thereof.
 MiRen Jaeger owned 1,000 shares in each of the following corporations:
 ABC Corporation, a listed domestic corporation, had Retained Earnings
of P1,000,000 and Common Stocks amounting to P2,000,000; outstanding
shares were 100,000 shares. At the time of death, the shares were
trading at P40 per share.
 XYC Corporation, an unlisted domestic corporation with Total Assets
amounting to P5,000,000, part of which is real property with a book
value of P3,000,000, but the fair market value is P3,500,000; and Total
Liabilities amounting to P3,000,000. The total outstanding shares of
the corporation was 100,000.
 A building and lot worth P5,000,000 was willed to be transferred to the
local government of Batangas where MiRen Jaeger was a resident before his
death.
 MiRen Jaeger had unpaid income tax of P150,000 and real property tax of
P20,000, all incurred after his death.
 Funeral Expense amounting to P220,000 comprised of mourning clothing
P15,000; telecommunications expense P5,000 (P3,000 of which were incurred
after interment to thank those who attended the funeral; P2,000 to notify
friends and family of Boruto’s death); Cost of burial plot P150,000;
upkeep of the mausoleum where the deceased was buried P10,000, interment
fees and the coffin P40,000. 40% of the of the burial plot remain unpaid.
 Judicial expenses to settle the estate P307,500, inclusive of attorney’s
fees P150,000; court filing fees P15,000; attorney’s fees of heirs
fighting over some of the properties P100,000; administrator’s fees
P40,000; premium for the bond filed by the administrator P2,500.
 MiRen Jaeger also had a receivable from Armin worth P400,000. Sarada was
declared insolvent by the court and unsecured creditors can only recover
40%.
 Medical expenses incurred prior to the death of MiRen Jaeger amounted to
P450,000, 50% of which is still unpaid and not evidenced by any notarized
deed or promissory note.
If Mr. MiRen Jaeger is a resident citizen, assuming the building and lot given to
the local government of Batangas was instead given to the local diocese?
25.What amount should be indicated in Estate Tax Return Item 29C?
A.8,500,000
B.3,500,000
C. 5,000,000
D.0

26.What amount should be indicated in Estate Tax Return Item 30B?

A.2,000,000
B.200,000
C. 2,200,000
D.0
27.What amount should be indicated in Estate Tax Return Item 31A?
A. 1,700,000
B.700,000
C. 1,400,000
D.0
28.What amount should be indicated in Estate Tax Return Item 32C?
A.5,000,000
B.6,000,000
C. 7,000,000
D.0
29.What amount should be indicated in Estate Tax Return Item 33A?
A.60,000
B.1,060,000
C. 760,000
D.0
30.What amount should be indicated in Estate Tax Return Item 34C?
A.12,460,000
B.11,460,000
C. 7,460,000
D.0
31.What amount should be indicated in Estate Tax Return Item 35A?
A.1,134,575
B.440,000
C. 240,000
D.0
32.What amount should be indicated in Estate Tax Return Item 36C?
A.11,325,425
B.12,020,000
C. 12,220,000
D.12,460,00
33.What amount should be indicated in Estate Tax Return Item 37D?
A.7,200,000
B.5,200,000
C. 5,000,001
D.5,000,000
34.What amount should be indicated in Estate Tax Return Item 16?
A.4,125,000
B.6,820,000
C. 12,220,00
D.6,325,425
35.What amount should be indicated in Estate Tax Return Item 19B?
A.50,000
B.30,000
C. 20,000
D.0
36.What amount should be indicated in Estate Tax Return Item 20?
A.197,526
B.379,200
C. 389,200
D.359,200

If MiRen Jaeger was a non-resident alien and there is reciprocity. Compute the
following.
37. What amount should be indicated in Estate Tax Return Item 29B?
A.1,500,000
B.2,500,000