BUS.TAX (ALL QUIZ MERGE) Flashcards
Who among the following is not a compulsory heir?
a. Legitimate child
b. Illegitimate child
c. Legitimate parent
d. illegitimate parent
d. illegitimate parent
Which of the following is true about the legitime of legitimate children/descendants?
a. The legitime of legitimate children/descendants is one-half the hereditary estate of the father and of the mother.
b. Legitimate children/descendants exclude legitimate parents/ascendants.
c. The legitime of a legitimate child is one-half that of an illegitimate child.
d. If there is only one legitimate child/descendant, his legitime is one-half the hereditary estate.
a. The legitime of legitimate children/descendants is one-half the hereditary estate of the father and of the mother.
The law requires certain formalities in the execution of a will. Which one is not?
a. Every will must be in writing and executed in a language known to the testator.
b. A holographic will is a will entirely written by the testator with his own hand and not witnessed or attested.
c. If in a will the signature of the testator is contested, at least one witness is required.
d. The will of an alien residing abroad produces effect in the Philippines if made in conformity with the formalities prescribed by the law of the place in which he resides
c. If in a will the signature of the testator is contested, at least one witness is required.
Mr. X executed a second will a month after he executed the first one. The second will is silent as to the first will. What effect does the second will produce?
a. The second will is void because Mr. X waived his right to revoke the first will.
b. The first will is automatically revoked because of the existence of a subsequent will.
c. The second will annuls provisions in the first will that are inconsistent with the second will.
d. The first will shall subsist over the second will because it is the original will.
c. The second will annuls provisions in the first will that are inconsistent with the second will.
In which of the following cases is a will invalid?
a. When no heir has been instituted.
b. When the will was executed in a language not known to the testator.
c. When the institution does not cover the entire business
d. When the instituted heir is incapacitated to succeed.
b. When the will was executed in a language not known to the testator
T OR F
The law presumes that every person is of sound mind in the absence of proof to the contrary.
TRUE
T OR F
In order to be capacitated to inherit, the heir, devisee, or legatee must be living at the moment the succession opens, except in the case of representation, when it is proper
TRUE
T OR F
A will may be revoked by the testator at any time before his death.
TRUE
T OR F
The right of the owner to enjoy and dispose of a thing is not absolute, as it is subject to limitations imposed by law.
TRUE
T OR F
Donor’s tax is also an excise tax.
TRUE
T OR F
A transfer is said to be gratuitous when there is no consideration for the transfer.
TRUE
T OR F
Succession is a mode of acquisition by virtue of which the property, rights, and obligations of a person are transmitted to others upon his death.
TRUE
T OR F
The rights to the succession are transmitted from the moment of death of the decedent, not the heir
TRUE
T OR F
A decedent, if he left a will, is called the testator
TRUE
T OR F
An executor is a person appointed by the testator (not the court) to administer the assets and liabilities of a decedent according to the will
TRUE
T OR F
An administrator is a person appointed by the court, while the executor is named by the testator in the will
TRUE
T OR F
The making of a person’s will cannot be left in part to the discretion of a third person
TRUE
T OR F
Persons of either sex under eighteen years of age cannot make a will.
TRUE
T OR F
It is essential that the testator be of sound mind at the time he executes his will, but it is not necessary that he be in full possession of all his reasoning.
TRUE
T OR F
Vanishing deduction is allowed to reduce the impact of successive taxation of the same property within a short period due to the death of the decedent-transferor.transporee
FALSE
T OR F
The benefit of vanishing deduction may apply multiple times as long as the conditions are met.
FALSE
T OR F
Estate tax is an excise tax
TRUE
T OR F
A transfer for public use is one made in favor of the Philippine government or any political subdivision for the public’s exclusive use
TRUE
T OR F
А nоn-resident alien estate is not entitled to the same deductions as a resident alien estate.
TRUE
T OR F
Vanishing deduction cannot be applied to property previously taxed that is situated outside the Philippines for a non-resident alien estate
TRUE
T OR F
The standard deduction allowed for a resident alien estate is P500,000.
FALSE
T OR F
The standard deduction is in addition to all other deductions available to Filipino citizens and resident aliens.
TRUE
T OR F
Any amount received by the heirs from the decedent’s employer under Republic Act 4917 is excluded from the gross estate.
FALSE
T OR F
A family home may be constituted by individuals other than husband and wife, such as a single parent with children.
TRUE
T OR F
The amount for inclusion in the gross estate for a family home may be less than its fair market value, depending on ownership and valuation rules.
TRUE
T OR F
The gross estate of a married decedent under the system of conjugal partnership of gains includes both his exclusive property and his share in the conjugal property
TRUE
T OR F
Not all property comprising the gross estate of an unmarried decedent is exclusive because certain deductions may apply regardless of ownership.
TRUE
T OR F
Marriage settlements may legally fix the property relations of spouses within the limits set by the Family Code, such as stipulating a different property regime.
TRUE
T OR F
The Family Code of the Philippines recognizes conjugal partnership of gains, absolute community of property, and complete separation of property as valid property regimes for married couples
TRUE
T OR F
Under the regime of absolute community of property, all property acquired before and during the marriage (except for exclusive property) is pooled together and managed jointly
TRUE
T OR F
Under the conjugal partnership of gains, upon dissolution, the net gains or benefits are divided equally between the spouses unless otherwise stipulated
TRUE
T OR F
The division of net gains under the conjugal partnership of gains may be modified by an agreement in the marriage settlement.
TRUE
T OR F
Spouses retain ownership, possession, administration, and enjoyment of their exclusive property unless otherwise agreed upon
TRUE
T OR F
Proceeds of a life insurance policy payable to the insured’s estate are not necessarily conjugal; the classification depends on the ownership of the policy and the designation of beneficiaries.
TRUE
T OR F
The cost of constructing a tombstone or mausoleum is chargeable to the estate of the decedent-spouse as part of burial expenses.
TRUE
Which is not true about standard deduction for a citizen estate?
a. It is equivalent to P5,000,000.
b. It need not be reflected in the estate tax return.
c. It applies to non-resident alien estate.
d. It need not be substantiated.
c. It applies to non-resident alien estate.
The following are requisites for vanishing deduction to be allowed except one. Which one?
a. The estate tax of the prior succession must have been finally determined.
b. The present decedent died within five years from date of death of the prior decedent.
c. The properly will respect to which deduction is sought can be identified.
d. The property must have formed part of the gross estate situated in the Philippines of the prior decedent
a. The estate tax of the prior succession must have been finally determined.
Vanishing deduction may not be allowed when
a. the estate tax or donor’s tax on the property previously taxed has not been paid.
b. the property previously taxed is situated in the Philippines.
c. the present decedent received the property previously taxed by inheritance or by gift.
d. the property previously taxed can be identified as the one received or acquired in exchange
a. the estate tax or donor’s tax on the property previously taxed has not been paid.
Unsettled obligation of the decedent
a. claim against the estate
b. claim against insolvent person
c. unpaid mortgage
d. casualty loss
a. claim against the estate
Which is not a requisite in order that claim against the estate may be deducted from gross estate?
a. certain in amount
b. contracted in good faith
c. for less than adequate or full consideration
d. existing and legally enforceable against the estate
c. for less than adequate or full consideration
When founded upon a promise or agreement, the deduction to be allowed for Claims Against the Estate, Unpaid Mortgage or any indebtedness shall be
a. limited to the extent that they were contracted bona fide.
b. for an adequate and full consideration in money or money’s worth.
c. both “a” and “b”
d. neither “a” nor “b”
c. both “a” and “b”
The following deductions are allowed a non-resident estate except one. Which one?
a. standard deduction-
b. family home
c. property previously taxed
d. net share of surviving spouse
Net share of the surviving spouse
b. family home
Transfers for public use to qualify as deduction from gross estate must be for
a the use of the government of the Republic of the Philippines.
b. the use of any political subdivision of the government.
c. public purposes exclusively.
d. all of the above
d. all of the above
During his lifetime, Mr. Almeda loaned a business colleague P300,000. The debtor was declared insolvent even before Mr. Almeda died.
a. P75,000
b. P225,000
c. P300,000
d. PO
- The debtor has P1 million assets and P4 million liabilities. The amount that must be included as part of gross estate is?
- In relation to question 9, the amount still collectible is
- In relation to question 6, the amount deductible is:
- Assuming that the debtor has P4 million liabilities without any asset left, the amount for inclusion in the gross estate
- In relation to question 9, the amount still collectible is:
- In relation to question 10, the amount deductible is:
1) C. 300k
2) A. 75k
3) B. 225k
4) D. 0
5) D. 0
6) D. 0
Mr. Almeda died with an unpaid mortgage on his farm in Batangas. The fair market value of the mortgaged farm at the time the loan was released was P1.4 million for which he was loaned P500,000 by Citibank. At the time of his death, the fair market value is P1.5 million. What amount must be included in the gross estate of Mr. Almeda?
1.5 Million
For Claims Against Insolvent Person to be allowed as deduction from gross estate,
a. the debtor must be insolvent as defined under R.A. 10142 or the Financial Rehabilitation and Insolvency Act (FRIA) of 2010.
b. the value of the decedent’s interest must be included in the gross estate.
c. both “a” and “b”
d. neither “a” nor “b”
c. both “a” and “b”
For Family Home deduction purposes,
a. a qualified person may constitute only one family home.
b. a legally separated woman may qualify as head of a family.
c. the man and woman constituting the family home must be legally married.
d. all of the above
a. a qualified person may constitute only one family home.
The proportionate deduction for losses and indebtedness allowed a non-resident alien estate include
a claims against the estate.
b. property previously taxed.
c. transfers for public use
d. all of the above
a claims against the estate.
When a marriage settlement was not agreed upon and the marriage was contracted before Aug. 3, 1988, the marriage settlement shall be:
a. Absolute community
b. Conjugal partnership of gains
c. Complete separation of property
d. Any other regime
b. Conjugal partnership of gains
When a marriage settlement agreed upon was void and the marriage was contracted on or after Aug. 3, 1988, the marriage settlement shall be:
a. Absolute community
b. Conjugal partnership of gains
c. Complete separation of property
d. Any other regime
a. Absolute community
When there was no marriage settlement and the marriage was contracted on or after Aug. 3, 1988, the marriage
a. Absolute community
b. Conjugal partnership of gains
c. Complete separation of property
d. Any other regime
a. Absolute community
Which is not an exclusive property of a spouse?
a. That which is brought to the marriage as his or her own.
b. That which each acquired during the marriage by gratuitous title
c. That which is acquired by right or redempuon.
d. That which is purchased with the spouses’ common fund
d. That which is purchased with the spouses’ common fund
Which does not hold true when a spouse transfers administration of his exclusive property to the other spouse?
a. A public instrument must be executed by the owner-spouse.
b. The public instrument must be recorded in the registry of property.
c. The administrator-spouse becomes the owner of the property administered.
d. The administration of the property by the administrator-spouse may be terminated
c. The administrator-spouse becomes the owner of the property administered.
Which is not true? The spouse with regard to his exclusive property:
a. Cannot mortgage the same if he is not of age.
b. May dispose of the same without the consent of the other spouse.
c. May appear in court litigation concerning the same.
d. Cannot allow the other spouse to administer the same.
a. Cannot mortgage the same if he is not of age.
Which is not a conjugal property?
a. Those acquired by onerous title during the marriage at the expense of the common fund.
b. Those purchased with the exclusive money of the husband.
c. Those obtained from the profession of the wife.
d. Industrial fruits from common property
b. Those purchased with the exclusive money of the husband
Which is not a conjugal property?
a. Those acquired using the common fund for the use of the husband.
b. Net fruits from the exclusive property of the wife.
c. Winnings from gambling by the husband.
d. Those purchased with the exclusive money of the husband.
d. Those purchased with the exclusive money of the husband.
If a life insurance policy was taken before marriage and premiums were fully paid by the decedent spouse, the proceeds are:
a. Partly exclusive
b. Partly conjugal
c. The exclusive property of the decedent spouse.
d. The exclusive property of the surviving spouse.
c. The exclusive property of the decedent spouse.
Net share of surviving spouse equals:
a. Gross conjugal property less charges against such conjugal property.
b. Net conjugal property multiplied by two.
c. Net conjugal property divided by two.
d. Net conjugal property divided by one-half
c. Net conjugal property divided by two.
