Since 1977
TAX
Final Preboard Set A
1. The Philippine income tax system has the following
features, except:
a. The individual income tax system is mainly
progressive in nature.
b. Indirect rather than direct system.
c. Semi-global and semi-schedular system
d. Comprehensive tax situs by using the nationality,
residence, and source rules.
2. Which of the following is correct?
Legislative Administrative
a. Fixing of tax rates Yes
b. Evaluation of object of tax Yes
c. Collection of tax Yes
d. Assessment of tax liability No
3. Raising revenue is the primary purpose of taxation,
which of the following is not one of the secondary
purposes of taxation:
a. Reduction of social inequality
b. Encourage economic growth by granting incentives
and exemptions
c. Promotion of general welfare
d. Protection of foreign interests
4. Which of the following statements is correct?
a. Indirect double taxation violates the Constitutional
provision of uniformity and equal protection.
b. There is direct double taxation in taxing the
income of the corporation and again subject the
portion of that income declared as dividend to final
tax.
c. Indirect double taxation is legal as long as there is
no violation of equal protection and uniformity
clauses of the Constitution.
d. All of the above
5. Which does taxing power of the
municipalities and cities precede from?
a. Constitutional grants
b. Legislative enactment
c. Presidential decree or Executive act
d. Local legislation
6. The 30% corporate income tax is increased to 35% by
the Congress for the purpose of raising revenue to be
used for national road expansion project near Bonifacio
Global City, a private corporation. Is the exercised of
the taxing power unconstitutional?
a. Yes, because taxing power must be exercised
exclusively for public purpose without any
incidental benefit to any private entity.
b. No, because the it is exercised directly for public
purpose and the benefit to a private entity is only
incidental.
c. Yes, because the increase in tax rate constitutes
deprivation of right to property of corporation
without due process of law for being excessive and
unreasonable.
d. No, because the constitution does not expressly
state that the power of taxation must be used only
for public purpose, thus, it may be used to benefit
a private entity.
7. Statement No. 1: Generally, an OFW shall be subjected
to the same tax rules that applies to a resident citizen.
Statement No. 2: A non-resident alien not engaged
in trade or business shall be subjected to a final tax
rate of 25% on all income derived from sources within
the Philippines, including gain on sale of shares of
stocks of a domestic corporation.
a. Both statements are correct.
b. Both statements are incorrect.
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TABAG
October 2019
c. Only Statement 1 is correct
d. Only statement 2 is correct.
8. Earl Garci, a resident and national of the United
Kingdom flew into the Philippines to woo Ana D.
Mapalad. A Filipina she met via Facebook. During Ear
Garci’s visit to Ana’s home, her father informed him
that he would have to go through the traditional
courting which is strictly followed in their Family. This
entails, fetching water from the deep well to their
house, chopping wood and others. To this, Earl agreed.
Yes On his 8th month of courtship, Ana died on a freak
No accident while drinking a cup of coffee. With tears in
No his eyes, Earl returned home and vowed not to return
to the Philippines. For purpose of income taxation,
Yes Richard shall be classified as:
a. Resident alien
b. Non-resident alien engaged in trade or business
c. Non-resident alien not engaged in trade or
business
d. None of the Above
9. Who among the following individual taxpayers is
taxable on income from within and without the
Philippines:
a. Amber, a native of Bacolod, working as overseas
contract worker in Dubai.
b. Tracy, a resident of Manila and citizen of Australia;
who has been working in the Philippines for the
past 10 years.
c. Manuel Chavez, a resident and citizen of Puerto
Rico, sent to the Philippines, as an employee of a
local brewery for 5 months.
d. Juan Cruz, a Filipino, who was sent by his
employer to the United States for 5 months.
10. Under the Creditable Withholding Tax system, which of
the following statement is incorrect?
provinces, a. Taxes withheld on certain income payments are
intended to equal or at least approximate the tax
due of the aye on said income.
b. The recipient of the income is no longer required to
file an income tax return as prescribe under the
Tax Code.
c. The payee is required to report the income and pay
the difference between the tax withheld and tax
due thereon.
d. Taxes withheld under this system are creditable in
nature.
11. An employee may still qualify as a Minimum Wage
Earner (MWE) notwithstanding his receipt of the
following, except:
a. Holiday pay & Overtime pay
b. Nightshift differential & Hazard pay
c. Commissions and Other Allowances
d. None of the Above
12. First statement: An individual who earns purely
compensation income which does not exceed the
minimum wage is exempt from income tax thereon.
Second Statement: An individual who derives purely
compensation income at minimum wage who at the
same time is given overtime pay by his employer is
exempt from income tax thereon.
a. True, True c. True, False
b. False, False d. False, True
13. Individuals earning purely compensation income shall
be taxed based on the:
a. Graduated income tax rates
b. 8% income tax rate if the total compensation
income does not exceed the VAT threshold.
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c. 8% income tax rate or graduated income tax rates c. Resident alien, 65 years old
at his discretion. d. None of the above
d. Graduated income tax rates provided his total
compensation income exceeds the VAT threshold. 22. Pedro operates a ten-door apartment with a monthly
rental of not more than P15,000 per unit/door. He
Use the following data for the next two (2) questions: sold the property to Juan in 2018. The sale shall be
14. Ms. Gerlyn operates a convenience store while she subject to:
offers bookkeeping services to her clients. In 2018, her a. Capital gains tax
gross sales amounted to P800,000, in addition to her b. Other percentage tax
receipts from bookkeeping services of P300,000. She c. Graduated tax rate
already signified her intention to be taxed at 8%
income tax rate in her 1st quarter return. Her income d. Value added tax
tax liability for the year will be:
a. P24,000 c. P68,000 Use the following data for the next two (2) questions:
b. P64,000 d. P88,000 During 2019, Alpha Corporation gave the following fringe
benefits to its employees:
15. If Ms. Gerlyn failed to signify her intention to be taxed Salaries to rank in file employees P 1,000,000
at 8% income tax rate on gross sales in her initial Salaries to managerial employees 1,800,000
quarterly income tax return, and she incurred cost of De minimis benefits to rank and file 54,400
sales and operating expenses amounting to P600,000 De minimis benefits to managerial
and P200,000 respectively, the income tax shall be: employees 27,200
a. P10,000 Fringe benefits to rank and file 102,000
b. P55,000 Fringe benefits to managerial employees 170,000
c. P125,000
d. Exempt from Income Tax 23. How much is the fringe benefits tax?
a. P48,000 c. P91,538
16. In general, the applicable rate in computing fringe b. P80,000 d. P166,400
benefit tax beginning January 1, 2018 is:
a. 32% c. 30% 24. How much is the total allowable deduction from
b. 25% d. 35% business income of Alpha Corporation?
a. P3,153,600 c. P3,245,138
17. Which of the following housing benefits is exempt from b. P3,233,600 d. P3,271,600
income tax?
a. Housing unit inside or adjacent (within 50 meters) 25. Which of the following royalties earned within the
from the perimeter of the business premises. Philippines is not subject to 10% final withholding tax?
b. Temporary housing for a stay in the housing unit a. Royalties from computer software
for (3) months or less. b. Royalties from books
c. Housing privilege of military officials of the Armed c. Royalties from literary works
Forces of the Philippines d. Royalties from musical compositions
d. All the above
26. Minimum Wage Earners (MWEs) receiving “other
Use the following data for the next two (2) questions: benefits” exceeding P90,000 limit shall be:
Mr. Hinada, a Japanese citizen residing in Osaka, sold his a. Taxable on the excess benefits only
shares of stock in Pacman Corporation (domestic b. Taxable on the excess benefits as well as his
corporation) to Ms. Japlos, a Filipina, for P800,000. He salaries, wages and allowances, just like an
purchased five months ago for P500,000 employee receiving compensation income beyond
18. The correct amount of tax is: the statutory minimum wage.
a. P45,000 capital gains tax. c. Exempt from income tax
b. P120,000 capital gains tax. d. None of the above
c. P1,800 stock transaction tax
Use the following data for the next four (4) questions
d. P4,800 stock transaction tax Ferdy won the recently raffled Super Lotto in the amount
of P1B. He plans to deposit P750,000,000 of his lotto
19. Assuming Pacman Corporation is listed in the local winnings with Bangko Natin and P250,000,000 in foreign
stock exchange, the correct amount of tax is: currency with ABN Amro under an expanded foreign
a. P45,000 capital gains tax. currency deposit system.
b. P120,000 capital gains tax.
c. P1,800 stock transaction tax 27. If Ferdy is a resident citizen, the lotto winnings shall be
d. P4,800 stock transaction tax subject to:
a. 20% Final Taxes
20. The income tax due of a mixed income earner who b. 25% Taxes
opted to be taxed at 8% income tax rate shall be: c. Exempt from Income Taxes
I. The tax due from compensation, computed using d. Added to Gross Income and Subject to 20-35%
Graduated Taxes
the graduated tax rate.
II. The tax due from self-employment and/or practice 28. If Ferdy is a non-resident alien engaged in trade or
of profession, resulting from the multiplication of business in the Philippines, the lotto winnings shall be
the 8% income tax rate with the total of the gross subject to:
sales/receipts and other non-operating income. a. 20% Final Taxes
III. The tax due from compensation and from self- b. 25% Taxes
employment and/or practice of profession, c. Exempt from Income Taxes
resulting from the multiplication of the 8% income d. Added to Gross Income and Subject to 20-35%
tax rate. Graduated Taxes
a. I only c. III only
29. If Ferdy is a resident alien, the interest income to be
b. II only d. I and II only earned from deposits in BPI shall be subject to:
a. 15% Final Taxes
21. Which of the following will not qualify as senior citizen? b. 20% Final Taxes
a. Resident Filipino citizen, 60 years old c. 25% Taxes
b. Filipino citizen with dual citizenship, 60 years old, d. Exempt from Income Taxes
six months residency in the Philippines

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30. If Ferdy is a non-resident alien not engaged in trade or 36. How much is Masaya’s income tax due for 2019, and
business in the Philippines, the interest income to be where will he indicate it in his annual ITR?
earned from deposits in foreign currency with ABN a. P172,000; Part IV, Schedule IVC, Item 64; Part II,
Amro under an expanded foreign currency deposit Item 21.
system shall be subject to: b. P172,000; Part IV, Schedule IVB, Item 56; Part II,
a. 15% Final Taxes Item 20.
b. 20% Final Taxes c. P192,000; Part IV, Schedule IVB, Item 56; Part II,
c. 25% Taxes Item 20.
d. Exempt from Income Taxes d. P192,000; Part II, Item 22, 23, 29 and 30

Use the following data for the next three (3) questions: 37. How much is Masaya’s total income tax credits for
Because of dire necessity, Pedro (resident citizen) sold a 2019, and where will he indicate it in his annual ITR?
parcel of land located in Batangas for P8,000,000 with a a. P80,000; Part IV, Schedule IVB, Item 55.
cost of P10,000,000. The fair market value of the land was b. P72,000; Part IV, Schedule IVB, Item 56; Part II,
P11,000,000 as determined by the BIR under a zonal Item 20.
valuation schedule. Fair market value under local c. P152,000; Part IV, Schedule IVC, Item 64; Part II,
assessment rolls pegged the lot at P8,000,000. The Item 21.
proceeds of the sale were used to purchase principal d. P152,000; Part II, Item 22, 23, 29 and 30
residence in Manila.
38. How much is Masaya’s income tax payable, and where
31. The sale of land resulted a tax consequence of: will he indicate it in his annual ITR?
a. P480,000 capital gains tax on sale of real property a. P20,000; Part II, Item 22, 23, 29 and 30
b. P600,000 capital gains tax on sale of real property b. P20,000; Part IV, Schedule IVC, Item 64; Part II,
c. P660,000 capital gains tax on sale of real property Item 21.
d. None of the above. c. P92,000; Part IV, Schedule IVB, Item 55.
d. P100,000; Part IV, Schedule IVB, Item 56; Part II,
32. Assuming Pedro is an nonresident alien not engaged in Item 20.
trade or business, the sale of land will result to a tax
consequence of: 39. Which of the following transactions of a VAT-registered
a. P480,000 capital gains tax on sale of real property seller is not subject to VAT?
b. P600,000 capital gains tax on sale of real property a. Remaining inventory upon retirement from
c. P660,000 capital gains tax on sale of real property business
d. P2,750,000 final withholding tax b. Sale of company’s used car to its officers
c. Sale of goods or services to the national
33. If the buyer is the government, the sale of land shall
government
be subject to:
a. Capital Gains Tax d. Sale of residential lot amounting to P1,000,000
b. Final Tax on Passive Income
c. Ordinary Returnable Income Tax 40. Bryan, vat registered person, imported machines from
d. A or C Australia as follows:
Machine Acquisition Cost Purpose
Use the following data for the next five (5) questions A P100,000 Personal use
(Refer also to the attached ITR Form): B 200,000 Business use
Juan Dela Cruz started practicing his profession as a CPA C 300,000 For sale
on January 1, 2019. He received a total amount of
P2,320,000 professional fees during the year, net of The importations were subjected to 50% excise tax
creditable withholding tax of P80,000.
based on purchase price. Machine C was sold for
Additional data: P1,000,000 exclusive of vat.
He also earned the following during the year:
 Interest income from bank deposit, P8,000 How much is the vat paid to the BOC?
 Royalty income from book publication, P150,000 a. P108,000 c. P54,000
 He chose to avail of the 8% income tax rate in his first b. P90,000 d. P36,000
Quarterly ITR.
 His total quarterly income tax payments amounted to 41. Using the above data, the amount of vat to be
P72,000 remitted to the BIR should be
a. P12,000 c. P106,000
34. What annual return should he file before April 15, b. P30,000 d. P84,000
2020?
a. BIR FORM No. 1701 – Individuals (Including Mixed
Income Earners), Estates, and Trusts). 42. World Power Corp. imported an article from Japan. The
b. BIR FORM No. 1701A – Individuals Earning Income invoice value of the imported articles was $7,000 ($1-
Purely from Business/Profession (Those under the P50). The following were incurred in connection with
graduated income tax rates with OSD as mode of the importation:
deduction OR those who opted to avail of the 8% Insurance P 15,000
flat income tax rate. Freight from Japan 10,000
c. BIR FORM No. 1700 – Individuals Earning Purely Postage 5,000
Compensation Income. Wharfage 7,000
d. None of the above. Arrastre charges 8,000
Brokerage fee 25,000
35. How much is his taxable income from business, trade, Facilitation fee 3,000
or practice of profession and where will he indicate it in
his annual ITR?
The imported article was imposed P50,000 customs
a. P172,000; Part IV, Schedule IVB, Item 56; Part II,
Item 20. duty and P30,000 excise tax.
b. P172,000; Part IV, Schedule IVB, Item 56; Part II, The Company spent P5,000 for trucking from the
Item 20. customs warehouse to its warehouse in Quezon City.
c. P2,150,000; Part IV, Schedule IVB, Item 55 The carrier is not subject to VAT.
d. P2,400,000; Part IV, Schedule IVB, Item 55
The VAT on importation is:
a. P60,000 c. P60,600

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b. P42,000 d. P80,000 a. 5 years in case of judicial settlement, and 2 years

in case of extrajudicial settlement
b. 2 years in case of judicial settlement, and 5 years
43. Which of the following shall be exempt from vat? in case of extrajudicial settlement
a. Services of banks. c. 2 years in case of judicial settlement and 3 years
b. Services of money changers and pawnshops. in case of extrajudicial settlement
c. Services of credit cooperatives d. 3 years in case of judicial settlement and 2 years
d. All of the above in case of extrajudicial settlement

44. Pedro, single, died leaving properties he inherited 4 ½ 49. Statement 1: Facilitation expense shall be included in
years ago which had fair market value of P 800,000 at the determination of applicable input vat on
the time of his death (P650,000 at the time of importation.
inheritance. Pedro mortgaged the property for P50,000 Statement 2: Presumptive input vat are creditable
when he already owned it. He paid the mortgage
indebtedness before he died. against output tax only if the taxpayer is allowed to
avail for 0% vat on its export sales.
Other properties in his gross estate had fair market a. Only statement 1 is correct
value of P1,000,000. The total expenses, losses, b. Only statement 2 is correct
indebtedness, taxes and transfer for public purpose
amounted to P300,000. How much was the vanishing c. Both statements are correct
deduction? d. Both statements are incorrect
a. P108,333 c. P225,000
b. P208,333 d. P508,333 50. LBC Express Padala-España branch also offer local and
overseas communication services to its customers in
addition to other services offered. It has the following
Use the following date for the next two (2) questions: data for a particular month:
In January 2018, JJ received a piece of land with fair Gross receipts, domestic calls P5,000,000
market value at P1,500,000 from his wealthy best friend Gross receipts, overseas calls 3,000,000
as a birthday gift. Since JJ had no use of the said donated (originating in the Philippines)
land he immediately sold it to Leomar for only P1,000,000. Purchase of supplies used in 300,000
connection with domestic calls net of
45. What is the total tax liability of JJ?
VAT
a. P15,000 c. P75,000
Purchase of equip. used in connection 800,000
b. P30,000 d. P90,000 with both domestic calls and overseas
calls, net of VAT
46. Assuming the wealthy best friend required JJ to pay Business expense 1,000,000
him a token amount of P100, how much is the gross
gift that the wealthy best friend had to report in his
donor’s tax return? How much was the overseas communications tax
a. None. Donation of real property is exempt from collected from persons who used the communications
facilities?
donor’s tax but subject to 6% capital gains tax.
a. P800,000 c. P300,000
b. The sale is considered fictitious, hence, subject to b. P500,000 d. P0
donor’s tax at the gross amount of gift P1,500,000.
c. P1,499,000 51. Red Mobile Communications has the following data for
d. None of the above a particular month:
Gross receipts, domestic calls P5,000,000
47. Which of the following statements is incorrect? Gross receipts, overseas calls 3,000,000
a. If at any time during a given taxable year, a (originating in the Philippines)
Purchase of supplies used in 300,000
taxpayer’s gross sales or receipts exceeded the
connection with domestic calls net of
VAT threshold (P3,000,000.00) , he/she shall VAT
automatically be subjected to the graduated rates Purchase of equip. used in connection 800,000
under Section 24 (A) (2) (a) of the Tax Code, as with both domestic calls and overseas
amended. calls, net of VAT
b. A non-VAT registered taxpayer who initially opted Business expenses 1,000,000
to avail of the 8% option but has exceeded the How much is the VAT payable, if any?
VAT threshold during the taxable year, shall be a. P504,000 c. P420,000
subject to 3% option Percentage Tax on the first b. P470,000 d. P0
P3,000,00.00 of his/ her gross sales/receipts under
52. Three of the following are subject to the value-added
Section 116 of the Tax Code, as amended, with tax. Which is the exception?
imposition of penalty even if payment is timely a. Sales or importation of pet foods.
made on the following month when the threshold is b. Sale by a person exempt from the VAT who issued
breached. a VAT receipt thereon.
c. The excess of the threshold shall be subject to VAT c. Receipts from leasing of residential units with a
prospectively, and the 8% income tax previously monthly rental of P15,000 per unit. Whereby the
paid shall be credited to the Income Tax Due under lessor has 50 units for lease.
the graduated rates provided in Section 24 (A) (2) d. Importations by persons who are not VAT
(a) of the Tax Code, as amended. registered.
d. None of the choices
53. A dealer in securities has the following for the year
48. The law provides for an extension of payment of estate 2018:
tax. The period of extension shall not exceed: Sale of securities held for sale in the P4,000,000

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ordinary course
Cos of securities held for sale in the
ordinary course
Supplies expense, net of vat
Rent expense, net of vat
The vat payable shall be:
a. P180,000 c. P84,000
b. P96,000 d. nil
54. The administrator of the Estate of Juan Santos claims
as deduction from the gross estate a receivable from a
person who absconded. His assertion is that the claim
against that person can no longer be collected. He also
explains that for income tax purposes bad debts are
deductible from the gross income so the receivable
from a person who absconded shall also be treated in
the same manner as in estate tax. Despite the
administrator’s contention the BIR disallowed as
deduction the claim against a person who absconded.
Is the BIR correct?
a. Yes, to be allowed as deduction from the gross
estate the claim must be against an insolvent
debtor and that the incapacity of the person must
be a fact and not merely alleged.
b. No, not to allow it to be deducted from the gross
estate will be a great injustice because of the fact
that collection is almost impossible.
c. No, all items that are deductible from gross income
for income tax purposes are also allowed to be
deducted from the gross estate.
d. Yes, the regulations are not clear and it requires
BIR ruling for such claim to be allowed as
deduction.
55. Juan Dela Cruz procured a life insurance upon his own
life. He designated his estate’s executor as an
irrevocable beneficiary. For estate tax purposes, the
proceeds of life insurance is:
a. Included in the gross estate of Juan Dela Cruz
because when the executor of the estate is
beneficiary, the proceeds are included in the gross
estate regardless of the designation.
b. Not included in the gross estate of Juan Dela Cruz
because the designation of the beneficiary is
irrevocable.
c. Included in the gross estate of Juan Dela Cruz
because proceeds of life insurance are always
subject to estate tax.
d. Not included in the gross estate because, as a rule,
proceeds of life insurance are generally not subject
to estate tax.
56. An off-line international air carrier having a branch
office or sales agent in the Philippines which sells
passage documents for compensation or commission to
cover off-line flights of its principal or head office or for
other airlines covering flights originating from the
Philippines ports or off-line flights is
a. Subject to 2 ½ % income tax on its gross
Philippine billings
b. Subject to 3% common carrier’s tax on gross
Philippine billings
c. Not subject to 2 ½ gross Philippine billings tax nor
to the 3% common carriers tax
d. Subject to both the 2 ½ gross Philippine billings
and to the 3 % common carriers tax
57. It is a well settled rule that estate taxation is governed
by the statute in force at the time of:
a. Creation of the last will testament or death of the
decedent in case of intestate succession
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b. Death of the decedent
2,500,000 c. Filing of estate tax return
d. Either letter “b” or “c” whichever will result to
300,000
higher estate tax liability
500,000
58. 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
59. A resident alien decedent left a gross estate amounting
to P1,200,000, which of the following statements is
correct?
a. The estate may be liable to estate tax.
b. The estate may not be liable to estate tax.
c. The estate is absolutely not liable to estate tax.
d. The estate is absolutely liable to estate tax.
60. Deductible claims against the estate or indebtedness in
respect of property may arise out of, except:
a. Contract
b. Tort
c. Operation of law
d. None of the choices
61. 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 c. P3,000,000
b. P2,000,000 d. zero
62. Ms. Ty bought a condominium from Ayala Corporation.
Based on the contract to sell executed between the
parties, the buyer is obligated to secure a life
insurance designating the seller as the irrevocable
beneficiary. The insurer is mandated to pay whatever
is the unpaid obligation of the buyer to the seller in the
event of untimely death of the former. Unfortunately,
Ms. Ty died while there is still an unpaid obligation to
the seller amounting to P3,000,000. The zonal value of
the condominium at the time of death is P6,000,000.
How much should be included in the gross estate?
a. P9,000,000 c. P3,000,000
b. P6,000,000 d. zero
63. Based on the preceding number, how much is the
deductible claims against the estate?
a. P9,000,000 c. P3,000,000
b. P6,000,000 d. zero
64. In determining the gross estate of a married decedent,
which of the following should be excluded?
a. Exclusive properties of the decedent
b. Share in the common properties by the decedent
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c. Share in the common properties by the surviving a deed of donation written in banana leaves. What is
spouse the status of the donation?
d. None of the above
a. Valid c. Voidable
65. The following properties will be classified uniformly b. Void d. Unenforceable
under Conjugal Partnership of Gains and Absolute
Community of Property, except:
a. Property inherited or received as donation during 69. Cito Yu has a building located in Shorthorn Quezon
City currently leased to various tenants. Since he is old
the marriage already and wants to retire from active business, he
b. Property acquired from labor, industry, work or sold the same to Janjan, his son, for 20 million pesos.
profession of spouses The value of the building at the time of sale is 40
million pesos. Which of the following statements is
c. Fruits or income due or derived during the
correct?
marriage coming from common properties a. The sale is for sufficient consideration
d. Fruits or income due or derived during the b. The sale is for insufficient consideration subject to
marriage coming from exclusive properties donor’s tax
c. The sale is for insufficient consideration but
66. The following deductions are also part of the gross
estate, except: exempt from donor’s tax since the object is a real
a. Claims against the estate property
b. Claims against insolvent persons d. The sale is subject to capital gains tax and donor’s
c. Transfer for public use tax
d. Death benefits under Republic Act. 4917
70. Mr. Adelantado donated to his son a community
property. However, only Mr. Adelantado signed the
67. Which of the following is a donation to stranger for
deed of donation. For donor’s tax purposes, how many
donor’s tax purposes?
donations were made?
a. Gift to an ancestor
a. One c. Four
b. Gift to a lineal descendant
b. Two d. none
c. Donation to a nephew
d. Donation to a sister company

68. Mac has a 1-hectare property in Basilan. Since the **End of Exam**
location of the land is known to be the area of
operation by the Abu Sayaff group, its value is
minimial. He donated the said property to Abu through

TAX TABLE
Individuals 1.1.18 – 12.31.22
Graduated Level Basic Tax Additional Tax
Not over P250,000 None None
Over P250,000 but not over P400,000 None 20% of excess over P250,000

Over P400,000 but not over P800,000 P 30,000 25% of excess over P400,000

Over P800,000 but not over P2,000,000 130,000 30% of excess over P800,000

Over P2,000,000 but not over P8,000,000 490,000 32% of excess over P2,000,000

Over P8,000,000 2,410,000 35% of excess over P8,000,000

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