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Business Taxation Test (2025) ||
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an executor or administrator, after paying the estate tax and to escape a future liability for a deficiency estate tax, must secure a written discharge from personal liability from - ANSWER - The commissioner of internal revenue it is a mode of acquisition by virtue of which the property rights and obligations to the extent of the value of the inheritance of a person are transmitted through his death to another either by his will or by operation of law - ANSWER - Succession Which statement is false about succession: •In succession, the successor can refuse the inheritance •The successor can be made liable for the obligation of the decedent beyond the value of the asset he received •In succession, fruits and credits maturing after the death of the decedent pass to the heirs evern if they were not subjected to estate tax •The successors inherits all the transmissible property of the decedent including his liabilities - ANSWER - The successor can be made liable for the obligation of the decedent beyond the value of the asset he received An act whereby a person is permitted with the formalities prescribed by law, to control to a certain degree the disposition of his estate, to take effect after his death - ANSWER - Will What amount be the amount to be included in the gross estate of the resident alien decedent for the following properties? Cost Fair Value Real property- Philippines P1,400,000 P1,500, Personal property- outside Phil. P750,000 P500, Personal property- Phil. P500,000 P350,000 - ANSWER - 2,350, Part of the gross estate of a citizen is an investment of 10,000 shares of domestic corporation. it has a par value of 100 per share. it was selling in the stock exchange at 110 to 140 at date of death of decedent the amount to be included in the gross estate would be - ANSWER - 1,250, Mr. Co Vi, a non-resident alien died for a mysterious virus leaving the following property. House- in Phil. P6,000,
Car- in China P2,500, Shares of stock- USA P5,000, Furnitures- in Phil. P1,000, How much is the gross estate of the decedent(with reciprocity)? - ANSWER - 7,000, only those properties in the Phil. except intangible property What would be the amount included in the gross estate of the filipino decedent who died in 2018? The only property of husband and wife at the date of death is a real property brought in by the surviving spouse into their marriage which was acquired the title in
- It was valued at 2,000,000 at date of acquisition and at 7,500,000 at the date of death - ANSWER - 7,500,000 the value at the date of death Lala Napo, a Filipini resident, died on Nov. 5,2019 and hia estate incurred losses. First loss: From fire on Feb.2, 2019 not compensated by insurance. Second loss: From flood on Feb. 20,2020 of household furniture also not compensated by insurance - ANSWER - First loss is not deductible, but the second loss is deductible Which of the following losses incurred during the settlement of the estate shall be deductible from gross estate? I- Losses arising from fires, storms, shipwreck or other casualties II- Losses from robbery, theft or embezzlement - ANSWER - I and II The following are the requisites in order for claims against the decedent's estate to be deductible except which one? They must be reasonably certain as to amount They must be enforced by the claimant They must be existing against the estate - ANSWER - they must have been prescribed Claims against the estate of indebtedness with respect to property may arise out of the following I- Contract II- Operation of law - ANSWER - I and II Which of the following taxes is not deductible from the gross estate Donor's tax accrued prior to death Property tax accrues prior to death Income tax paid on income received before death - ANSWER - Estate tax paid to a foreign country Which of the following taxes shall be deductible from gross estate of the decedent Estate tax due from the transmission of his estate Property taxes not accrued before his death Income tax for income received after death - ANSWER - Income tax for income received before death
Which of the following is not an element of succession? Estate, Decedent, Heir, Administrator - ANSWER - Administrator Inheritance does not include - ANSWER - Public Office The following are the motives of a taxpayer that preclude that transfer in contemplation of death, except one - ANSWER - To avoid payments of estate tax In default of testamentary heirs, the law determines who are to succeed to the inheritance of the deceased. Which of the following ranks first in the order of succession? - ANSWER - Legitimate Children A tax resulting from inter-vivos transfer of property may be a - ANSWER - Donor's Tax Which of the following could legally effect transfer of properties through succession? By operation of law By virtues of a will Both A and B By onerous transfer - ANSWER - Both A and B Which of the following is not regarded as compulsory heir? - ANSWER - Brother Which is not authorized to take charge of the estate during inestate period - ANSWER - Successors A testator whom a personal property is given by virtue of a will - ANSWER - Legatee A person called to the succession either by the provision of the will or by operation of the law is a - ANSWER - Heir Who is the taxpayer in estate taxation? - ANSWER - The estate What would be the amount included in the gross estate of a resident citizen who sold all his properties to his only son two months prior his death as follows: Selling price paid by the son P 100, Fair market value at date of sale P 2,000, Fair market value at date of death P 3,000,000 - ANSWER - 2,900, Which of the following deductions actually reduce inheritance? - ANSWER - Claims against the estate Which of the following is deductible from the exclusive portion of the gross estate? - ANSWER - Family home pertaining to house and lot acquired during marriage
For estate tax purposes, the estate of the decedent shall be valued at the time - ANSWER - Of the death of the decedent One of the following is subject to estate tax on properties situated within the Philippines only - ANSWER - Nonresident alien One of the following donations is not included as part of gross estate - ANSWER - Transfer under special power of appointment One of the following transfers is not included in the gross estate - ANSWER - Transfer for adequate and full consideration The properties comprising the gross estate shall be valued based on their: - ANSWER - Fair market value at the time of death If the property included in the gross estate is a real property, which shall be the fair market value? - ANSWER - Zonal value or assessed value whichever is higher Which of the following value is not generally used for estate valuation purposes? - ANSWER - Fair market value at the time the return is filed The community properties shall consist of all property owned by the spouses at the time of the celebration of the marriage or acquired thereafter. One of the following, however, is not a community property - ANSWER - Properties acquired before marriage by either spouse who had legitimate descendants by a former marriage. Which of the following is taxable with Philippine income tax for his income earned within and outside the Philippines? - ANSWER - Resident Citizen Which of the following are business taxes? I - Income tax II - VAT III - Excise tax on "Sin" products IV - Documentary stamp tax - ANSWER - II and III only Statement I: Transfers of property in the course of business from one person to another are subject to transfer taxes. Statement II: Gratuitous transfers of property are subject to either estate tax or donor's tax - ANSWER - Only statement II is correct
Which of the following taxes is not deductible from the gross estate - ANSWER - Estate tax paid to a foreign country Which of the following statement is incorrect? A claim against an insolvent person, which is not collectible in full: - ANSWER - Must be notarized if arising out of a debt instrument of the insolvent A piece of land was included in the gross estate at the value of P2,000,000. Upon closer examination, you found out that the value used was net of P500,000 unpaid mortgage on the same land. How much should have been included and deducted from the gross estate? - ANSWER - P 2,500,000 included and P 500,000 deducted The decedent is an unmarried head of family with the following date: Real and personal properties P 50,000, Family home P 15,000, Ordinary deductions: Losses and Indebtedness P 2,000, Other deductions P13,000,000 P 15,000, The gross estate is: - ANSWER - P 65,000, The decedent is an unmarried head of family with the following date: Real and personal properties P 50,000, Family home P 15,000, Ordinary deductions: Losses and Indebtedness P 2,000, Other deductions P13,000,000 P 15,000, Medical expenses P 7,000, The taxable net estate is: - ANSWER - P 35,000, Who of the following shall file the written notice of death Executor Administrator Legal Heir
Any of the above - ANSWER - Any of the above Jojo, a Filipino, is an unmarried head of family with the following date: Real and personal properties (Philippines) P 50,000, Business interest (Abroad) P 5,600, Family home P 13,400, Ordinary deductions: Funeral expenses P 5,000, Judicial expense P 500, Losses P 3,500, Indebtedness P 7,000,000 P 16,000, How much is the gross estate? - ANSWER - P 69,000, Jojo, a Filipino, is an unmarried head of family with the following date: Real and personal properties (Philippines) P 50,000, Business interest (Abroad) P 5,600, Family home P 13,400, Ordinary deductions: Funeral expenses P 5,000, Judicial expense P 500, Losses P 3,500, Indebtedness P 7,000,000 P 16,000, How is the taxable net estate? - ANSWER - P 43,500, Lala Koh is the owner of a small grocery store with the gross sales in any one-year period that do not exceed P1,500,000. She is not a VAT registered taxpayer. She submits the following data for the month of January 2020:
Inheritance received is construed as unequal to wealth resulting to the impositionnof estate tax describes - ANSWER - Redistribution of wealth theory The tax imposed on the right to transmit at death is known as - ANSWER - Estate Tax The tax imposed on the transfer of property without consideration between two or more persons who are living at the same time the transfer is made - ANSWER - Donor's Tax which of the following statement is correct •succession takes place and the right of the state to tax the privilege to transmit the estate vests instantly upon death
- estate taxation is governed by the statute in force at the time of death of the decedent
- estate tax across as of death of the decedent - ANSWER - all of the above the taxpayer in estate tax is - ANSWER - the estate as a juridical entity estate tax accrues from: - ANSWER - the moment of death of the decedent which in its nature may be promptly accomplished it is well settled rule that estate taxation is governed by the statute in force at the time of
- ANSWER - death of the decedent
