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Chapter Quiz
10. Transfer tax is imposed to partially recover future reduction in income tax which will
arise from the split of income producing property to few or several taxpayers.
This statement describes what theory?
a. Tax evasion theory c. Benefit received theory
b. Tax recoupment theory d. Wealth distribution theory
11. The government enforces the transfer of property by donation and succession. By
exercising these privileges, the transferor must have to be taxed.
This statement describes which theory?
a. Tax evasion Theory c. Benefit received theory
b. Tax recoupment theory d. Ability to pay theory
12. The transfer of wealth should be taxed so that it will benefit the entire society.
This statement describes which theory?
a. State partnership theory
b. Wealth distribution theory
c. Ability to pay theory
d. Tax recoupment theory
13. Wealth accumulation could not be possible without the governments indirect
participation. The transfer of wealth should be subject to tax because it is just fair for the
government to take its just share on the wealth.
The statement describes
a. State partnership theory
b. Wealth distribution theory
c. Ability to pay theory
d. Tax minimization theory
14. Transfers can be structured in such a way to avoid payment of income tax. Thus, the
gratuitous component of transfer must be taxed.
The statement describes
a. Tax evasion theory c. Benefit received theory
b. Tax recoupment theory d. Ability to pay theory
20. Statement 1: The amount of transfer tax is dependent upon the value of the thing
transferred
Statement 2: Donors tax is imposed upon the properties of a decedent while estate tax is
imposed to a donor.
Which is incorrect?
a. Statement 1 c. Both statements
b. Statement 2 d. Neither statement
24. Which is not subject to transfer tax on transfer of properties located abroad?
a. Resident citizen c. non resident citizen
b. Resident alien d. non resident alien
26. Which of the following may be exempt on transfer on the basis of reciprocity?
a. Resident alien c. Non resident alien
b. Non resident citizen d. B and C
29. Which of these is subject to tax only on transfer of properties situated in the Philippines?
a. A citizen of Japan residing in the Philippines
b. A citizen of the Philippines residing in Hong Kong
c. A citizen of America residing in Korea
d. A citizen of the Philippines residing in the Philippines
37. Which of the following forms of non-taxable transfers will not be subject to transfer tax?
a. Void transfer c. Incomplete transfer
b. Quasi transfer d. A and B
38. Which of the following forms of non taxable transfers may be subject to transfer tax n
the future?
a. Void transfer c. Incomplete transfer
b. Quasi transfer d. All of these
39. Which is incorrect regarding the taxation of incomplete transfers which are eventually
completed?
a. They are subject to estate tax
b. They are subject to donors tax
c. They are subject to both donors tax and estate tax
d. They are subject to either donors tax or estate tax
42. Conditional transfers and revocable transfers which are still pending completion at the
point of transferors death are
a. Donation inter vivos c. subject to estate tax
b. Subject to donors tax d. subject to income tax
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