1. S1: Estate tax is a transfer tax. It a taxation that taxes property as the object.

S2: All net estates are subject to estate tax.

a. Only S1 is true.
b. Only S2 is true.
c. Both S1 and S2 are true.
d. Both S1 and S2 are false.
2. The rule of reciprocity applies only to
a. Resident citizen
b. Resident alien
c. Nonresident citizen
d. Nonresident alien
3. Which of the following statements is not correct?
a. Estate tax return is not required to be filed for real estate valued at
P200,000.
b. No estate tax is required to be filed for gross estate which is value at
P200,000.
c. Estate tax return is required to be filed within 6 months from the time of
death of the decedent.
d. The estate tax return with gross estate of more than P2,000,000 shall be
certified by a CPA.
4. The following statements does not pertains to notice of death is required, except
I.
Gross estate is subject to estate tax.
II.
Gross estate exceeds P200,000.
III.
Notice of death shall be made within 1 month after decedents death.
a. I and II
b. I and III
c. II and III
d. I, II, and III
5. S1: All properties of the decedent are subject to estate tax.
S2: All legal claims against the estate shall be deducted from the estate.
a. Only S1 is true.
b. Only S2 is true.
c. Both S1 and S2 are true.
d. Both S1 and S2 are false.
6. S1: All decedents are entitled for the standard deduction to the gross estate.
S2: All properties of an individual located in the Philippines are included in the
gross estate.
a. Only S1 is true.
b. Only S2 is true.
c. Both S1 and S2 are true.
d. Both S1 and S2 are false.
7. The BIR commissioner may extend the time for payment of such tax when settled
extrajudicially up to
a. 2 years
b. 5 years
c. 10 years
d. 15 years
8. The following are not true concerning liability for payment of estate tax, except:
I.
Executor or administrator is primarily liable and heir or beneficiary is
secondary.
II.
When there are two executors or administrators, all of them are liable
severally.
a. I only
b. II only
c. Both I and II
d. Neither I nor II
9. The following statements are not true as to the safeguards for payment, except

I.

A debtor of the decedent is required to pay its debts to the heirs or

successors.
II.
The register of deeds may register any deeds even before payment of
estate tax.
a. I only
b. II only
c. Both I and II
d. Neither I nor II
10. Payment by installment of estate tax requires that
I.
A clearance shall be released only with respect to the property the
corresponding/computed tax on which has been paid.
II.
Any amount paid after the statutory due date of the tax shall be imposed
to the corresponding penalty thereto.
III.
The commissioner shall enforce action against the estate after the due
date of the estate tax, provided that all the applicable laws and required
procedures are followed/observed.
a. I and II
b. II and III
c. I and III
d. I, II, and III
11. The following are essentials of donation, except
a. Donative intent
b. Capacity of the donee
c. Delivery of the gift
d. Acceptance of the donee
12. Donation can be made orally for movable property when
a. The amount donated is less than P5,000.
b. The amount donated is more than P5,000.
c. The amount donated is P5,000 or less.
d. The amount donated is P5,000 or more.
13. Donation can be made orally for immovable property when
a. The amount donated is less than P5,000.
b. The amount donated is more than P5,000.
c. The amount donated is P5,000 or less.
d. Cannot be made orally.
14. The following are classified as strangers, except:
a. Great grandfathers great grandfather.
b. Aunts sisters great granddaughter.
c. Uncles grandsons godchild
d. Great grandmothers granddaughter.
15. The following does not pertain to cancellation of debt, except
I.
If the cancellation of indebtedness is due to the rendition of service.
II.
If a corporation forgives its member, the transaction has the effect of
dividends.
a. I only
b. II only
c. Both I and II
d. Neither I nor II
16. The following are deductions for allowed for NRA when making donations, except
a. Donation to NGO
b. Donation to government
c. Dowries
d. Diminution
17. The following donations are exempt from donors tax, except
a. P100,000 net taxable gift for the month.
b. Gratuitous transfers by a religious corporation to its local branch.
c. Integrated bar of the Philippines.

d. Development academy of the Philippines.

18. The tax rate of donation is
a. Progressive taxation
b. Regressive taxation
c. Proportionate taxation
d. Proportionate and Progressive taxation
19. Which of the following statements pertaining to filing of returns of donors tax is
true?
I.
Donations that are exempt from donors tax are not required to file the
return if the exemption amounts only to a partial exemption.
II.
Each gift made during the year is to be included in the computation of net
gift.
a. I only
b. II only
c. Both I and II
d. Neither I nor II
20. Donors tax is applicable on gifts made by
a. Natural person
b. Juridical person
c. Both a and b
d. Government
21. S1: To require the business to be registered first with the regulatory government
agency is an exercise of taxation power of the government.
S2: a single proprietorship business must secure first its BIR registration and TIN
before it is allowed to be issued with DTI certificate.
a. Only S1 is true.
b. Only S2 is true.
c. Both S1 and S2 are true
d. Both S1 and S2 are false.
22. The following are exempt of payment of P500 registration fee, except
a. Cooperatives
b. Individuals earning compensation
c. Overseas worker
d. Self-employed individuals with gross sales not exceeding P100,000 per
year.
23. S1: A business to be registered as exempt from business must submit an
Exemption certificate.
S2: A corporation must secure first its certificate from SEC before it is allowed to
be registered with the BIR.
a. Only S1 is true.
b. Only S2 is true.
c. Both S1 and S2 are true
d. Both S1 and S2 are false.
24. A business will subject to be VAT registered if
a. Gross receipts or sales exceeds P1,500,000
b. Gross receipts or sales P1,500,000 and above
c. Gross receipts or sales exceeds P1,919,500
d. Gross receipts or sales P1,919,500 and above
25. S1: Vat purchase invoice is a source of Input Vat of the vat registered business.
S2: gross receipts of business tax computation includes deposits and advance
payments which are not restricted.
a. Only S1 is true.
b. Only S2 is true.
c. Both S1 and S2 are true
d. Both S1 and S2 are false.
26. The following are not vatable transactions, except
a. Roasted chicken

b. Coffee beans
c. Dried mangoes
d. Dried fish
27. The following statements are not true concerning Zero-rated transactions, except
a. Sale of gold to Bangko Sentral ng Pilipinas.
b. Sale of power or fuel generated in renewable sources.
c. Sale of raw materials or packing materials and services performed by
subcontractors to an export company whose export sales is 70%.
d. Dollars denominated sales.
28. S1: All export sales are zero-rated transactions
S2: All transactions of vat persons are vat transactions
a. Only S1 is true.
b. Only S2 is true.
c. Both S1 and S2 are true
d. Both S1 and S2 are false.
29. The following statements is/are true in relation to vat on leased of a residential
unit
I.
The lease is subject to vat if rental per unit exceeds P12,800 even if it did
not exceed P1,919,500.
II.
The lease is subject to vat if rental per unit do not exceeds P12,800 but
exceeded P1,919,500.
a. I only
b. II only
c. Both I and II
d. Neither I nor II
30. Gross receipts of services rendered by a domestic common carrier of cargoes by
land is subject to
a. 12% vat
b. 3% OPT
c. Zero-rate transaction
d. Vat-exempt transaction
e.
Short Problems: No solution no point.
31. The following computation for vat was made by a vat registered company:
Sales
100,000
Output Vat
10,000
Sales invoice
110,000
How much was the output vat for the transaction?
a. P10,000
b. P11,786
c. P12,000
d. P13,200
32. Mr. A died leaving the following properties:
Conjugal properties, excluding family home
P1,000,000
Family home (P200,000 exclusive property of Mr. A)
1,000,000
Exclusive property, excluding family home
500,000
Claims against the estate (30% against exclusive property)
300,000
Funeral expenses
180,000
Judicial expense
50,000
Claims against insolvent person (40% are collectible)
100,000
How much is net estate?
a. P365,000
b. P335,000
c. P310,000
d. P285,000
33. The following donations are made by Ms. B during 2013:

Date
March 31
June 30
December 30

Explanation
Amount
Gave her brother a laptop
60,000
Gave her sister-in-law cellphone
10,000
Donated cash on account of marriage of her
70,000
brother
What is the amount of donors tax of Ms. B for 2013?
a. P400
b. P800
c. P3,000
d. P3,400
34. The following are invoice price of a non-vat registered common carrier
Passengers by land
500,000
Passengers by sea
600,000
Cargoes by land
800,000
Cargoes by sea
728,000
Its total Vatable transactions would be
a. P0
b. P2,128,000
c. P2,028,000
d. P2,628,000
35. Mr. C, nonresident alien, donated the following items during the 2013 on account
of marriage of his son:
Philippines
USA
Shares of stocks
1,000,000
2,000,000
Franchise
2,000,000
1,000,000
House and lot
5,000,000
What is the donors tax for the year 2013 if there is reciprocity?
With
Withou
t
a. 204,000 900,000
b. 203,000
0
c.
0
204,000
d. 204,000
0
Problems: No solution no point.
Problem I
Mr. Tiny Dagul, 51 years old Filipino, with 22 years of marriage with Alina, died due to
falling from a table on November 1, 2012. The following are fair value of properties by
Mr. and Mrs. Tiny Dagul on November 2, 2012.
Cash in Bank
Family Home (P400,000 is an exclusive property of Mrs, Dagul)
Properties inherited by Mr. Dagul before marriage
Properties inherited by Mrs. Dagul before marriage
Properties inherited by Mr. Dagul on December 31, 2009 with fair
market value at the time of transfer P1,000,000. Together with a
Mortgage of P400,000.
Properties inherited by Mrs. Dagul on October 2, 2010 with fair market
value at the time of transfer 300,000.
Properties through the labor of Mr. and Mrs. Dagul
Personal properties of Mr. Dagul (P250,000 are jewelries)
Personal properties of Mrs. Dagul (P50,000 are jewelries)
Property irrevocably transferred to Mrs. Dagul
Claims of Mr. Dagul to other persons (30% is collectible)
12% Time Deposit acquired on December 31, 2009

P1,000,000
1,400,000
300,000
200,000
1,200,000

200,000
5,000,000
400,000
230,000
300,000
300,000
500,000

Property transferred 5 days before the death of Mr. Dagul

Income of the following properties:
Properties inherited of decedent after marriage
Properties inherited of spouse after marriage
Deductions incurred:
Funeral Expense (including coffin given by friends worth P110,000)
Judicial Expense
Property loss due to earthquake with P100,000 insurance
Transfer to government
Unpaid Mortgage of Property inherited by Mr. Dagul on December 31,
2009 is 40%.
Amounts Received under R.A 4917
Medical Expenses (30% incurred 3 months before January 1, 2012.)
Annual Property Tax for 2012.

500,000
40,000
80,000
300,000
400,000
300,000
250,000

70,000
700,000
50,000

Required:
Compute for the Estate tax. (Show your solution in good form by separating properties
and deduction as to being an exclusive, conjugal or community property.)
Problem II
The following donations were made by Dina Tuto for the year 2012.
Date
Market value Explanation
January 1
P200,000 Donated to Nagkasaysay Foundation, an accredited
NGO, that used 30% of the amount for administrative
purposes.
February 2
90,000 Gave a car to her son Lino for his birthday
February 14
10,000 Gave her husband Nat, Seiko watch in celebration of
their wedding anniversary.
March 15
300,000 Mr. and Mrs. Tuto donated a lot to their daughter Datina
on account of marriage.
March 31
50,000 Gave godchild a MacBook on account of graduation.
April 25
150,000 Gave son-in-law a car on account of marriage.
June 10
250,000 Gave cash to Mrs. Tutos great grandfathers great
grandfather for his daily needs.
August 28
500,000 Gave house and lot to aunts granddaughters son on
account of marriage.
October 28
400,000 Donated land to the government for educational
purposes.
October 31
350,000 Donated burial lot to grandmothers aunt.
November 29
1,000,000 Mr. and Mrs. Tuto gave a condo unit to their daughter
Datina on account of marriage.
December 25
600,000 Gave farm land to their 2 children.
Required:
Compute for total donors tax payable for each month. Separately compute for the
donation to relatives and strangers (Show your solution in good form.)

Problem III
During 2012, the following are transactions reported by Gina Ha Sari-sari Store a vat
registered company, owned by Gina Ha.
January 1 Purchases from a Vat registered entity, at invoice price
March 31 Purchases from a Vat registered entity, at sales price
October 30 Purchases from a Non-Vat registered entity
November 31 Purchases from a Non-Vat registered entity
Domestic sales to various Vat registered entity, at invoice price
Domestic sales to various Non-Vat registered entity, at sales price
Export Sales, at sales price
Sales to government
Required:
Compute for the following (Show your solution in good form):
a. Total Vatable sales.
b. Total Vatable purchases.
c. Total output vat
d. Total input vat
e. Total Income tax withheld.
f. Total Final Vat withheld.
g. Net Vat payable.

1,120,000
1,344,000
896,000
560,000
1,680,000
2,240,000
1,456,000
448,000

Estate tax table

Net estate
Estate tax
Over
Not over
Tax of
Plus %
0
P200,000
Exempt
200,000
500,000
0
500,000
2,000,000
15,000
2,000,000
5,000,000
135,000
5,000,000
10,000,000
465,000
10,000,000
And over
1,215,000

Excess over
0
5%
8%
11%
15%
20%

P0
200,000
500,000
2,000,000
5,000,000
10,000,000

Donors tax table

Net gift
Donors tax
Over
Not over
Tax of
Plus %
P0
P100,000
Exempt
100,000
200,000
0
200,000
500,000
2,000
500,000
1,000,000
14,000
1,000,000
3,000,000
44,000
3,000,000
5,000,000
204,000
5,000,000
10,000,000
404,000
10,000,000
And over
1,004,000

Excess over
0%
2%
4%
6%
8%
10%
12%
15%

P0
100,000
200,000
500,000
1,000,000
3,000,000
5,000,000
10,000,000