1. Hello KT, Inc., a non-VAT reg. company, accumulated sales of P1,819,500.

For the fiscal year ending September 2016, will the company be required to
become VAT registered?
a) No. VAT threshold is not reached yet.
b) No. VAT threshold is not breached yet.
c) Yes. VAT is applicable.
d) The company is required to be OPT registered.
2. Kiti-Kiti, makes annual sales of fresh tilapia amounting P2,919,500. He is

contemplating if he is already required to be registered under the VAT

system because he is no longer updated as regards the threshold for its
mandatory registration. As his client, what will you tell Mr. Kiti?
a) No. VAT registration is not yet required.
b) Yes. VAT registration is now mandatory.
c) Yes. However, optional.
d) Kiti has the option with regard being OPT or VAT registered.
3. Sale of sugar, being an agriculture food product, is exempt from VAT.
a) True. Food products in their original state is exempt from VAT.
b) False. Food products in their original state is vatable with 0%.
c) True. Sale of sugar is exempt from VAT and OPT.
d) False. Sale of sugar is vatable.
4. Donors tax is applicable only in completed gifts. Thus, all the elements of

donation made inter-vivos must always concur to validate a donation.

a) True. All the elements of valid donation must be present for donors tax
to apply.
b) False. Capacity of the donee may not be required under certain cases.
c) False. Capacity of the donor may not be required under certain cases.
d) False. Intent may not be required in certain cases.
5. Onerous transfers, or transfers for a fee, are never subject to donors tax.
a) True
b) False
c) Sometimes
d) None of the choices
6. Estate tax is an inheritance tax.
a) True. It is imposed on the privilege to transfer property upon ones death.
b) True. Thus, it is paid by the heirs of the estate.
c) False. It is not an inheritance tax.
d) None of the choices
7. Estate tax is based on privilege to transfer property upon ones death.
a) False. It is based on the privilege to receive property from the deceased.
b) False. The tax is based on the property.
c) True. Estate tax is based on privilege to transfer property upon ones

death.
d) None of the choices
8. Mr. BG was married but without any child. Prior to his death, he designated

his wife as the sole heir of the mass of property he will left upon his death.
How much will be considered as free portion of the estate?
a) None. Everything goes to the wife.
b) None. But the wife should accept the donation in writing.
c) 1/2 of the property is considered free.
d) 3/4 is the free portion.
9. What is the formula in determining the net estate taxable (NET)?
a) Gross estate (Ordinary + Special deductions)
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b) Gross estate (Ordinary Special deductions)

c) Net estate (Ordinary + Special deductions)
d) None of the choices
10. Which of the following is not correct? RA 10378 provided for the exemption

of international carriers on the principle of reciprocity

a) From income tax on their revenues derived from the carriage of persons
and their excess baggage.
b) From VAT on their carriage of passengers
c) From percentage tax on their carriage of passengers
d) From percentage tax on their carriage of cargoes
11. For estate tax purposes, the gross estate of the decedent shall be valued at

the time of decedents death. Which is generally composed of

a) Properties only
b) Properties and rights only
c) Properties and obligations only
d) Properties, rights and obligations
12. A cancer stricken husband, in his death bed, donated to his wife a

substantial sum of money, without of course the benefit of family rejoicing.

The donation to take effect upon his death later through euthanasia. What is
the status of donation made between the husband and wife?
a) Void for being immoderate.
b) Void for being made not under cases of family rejoicing.
c) Void for being immoderate and made not under cases of family rejoicing.
d) Valid.

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