TRANSFER TAX

Question 1

In the absence of a marriage settlement, or when the regime agreed upon was void, the property relations of the spouses who were married on or after August 3, 1988 would be:

Answer 1

Absolute community of property

Question 2

Which of the following is exclusive property under the system of conjugal partnership of gains?

a. Property before marriage
b. Inheritance during marriage
c. Property acquired during marriage out of exclusive money
d. All of the above.

Answer 2

c. Fruits of property inherited during the marriage

Question 3

A person who inherits specific personal property through a will

1 point
a. Devisee
b. Legatee
c. Heir
d. Successors

Answer 3

B. LEGATEE

Question 4

Exclusive property of the wife is called?

1 point
a. Income
b. Capital
c. Paraphernal
d. equity

Answer 4

C. PARAPHERNAL

Question 5

Exclusive property of the husband is called?

1 point
a. Income
b. Capital
c. Paraphernal
d. equity

Answer 5

B. CAPITAL

Question 6

An act liberality whereby one disposes gratuitously a thing or right in favor of another who accepts it

1 point
a. Succession
b. Occupation
c. Donation
d. Tradition

Answer 6

C. DONATION

Question 7

Donor tax is:

1 point
a. A property tax
b. A personal tax
c. A business tax
d. An excise tax

Answer 7

D. AN EXCISE TAX -

*** imposed on the act of passing the ownership of property at
the time of death and not on the value of the property or right.

Question 8

The subject matter or object of transfer taxes is

1 point
a. Right to transmit
b. Decedent
c. Properties of the decedent
d. Beneficiaries

Answer 8

A. RIGHT TO TRANSMIT

Question 9

The common characteristics of transfer taxes is that the transfer of property:

1 point
a. Is onerous
b. Takes effect during the lifetime of the transferor
c. Takes effect upon the death of the transferor
d. Is gratuitous

Answer 9

D. GRATUITOUS

Question 10

The following are the requisites of a donation for purpose of the donor’s tax, except one.

1 point
a. Capacity of the donor
b. Capacity of the donee
c. Delivery of the subject matter of gift
d. Donative intent

Answer 10

b. Capacity of the donee

Question 11

For the donation to be considered valid, accepted of the donation must be made:

1 point
a. During the lifetime of donor only
b. During the lifetime of the done only
c. During the lifetime of the donor and the donee
d. None of the choices

Answer 11

C. DURING THE LIFETIME OF THE DONOR AND THE DONEE

Question 12

Which of the following is subject to donor’s tax?

a. Those made between persons who were guilty of adultery or concubinage at the time of the donation
b. Those made to conceived and unborn children
c. Those made to a public officer by reason of his office
d. Those made between husband and wife during their marriage

Answer 12

a. Those made between persons who were guilty of adultery or concubinage at the time of the donation

Question 13

If the gift is made in properties, it shall be appraised at its:

1 point
a. Fair market value as of the time the donor’s tax return is filled
b. Fair market value as of the time of donation
c. Historical cost at the time the donated property was acquired
d. Value in the hands of the donor

Answer 13

b. Fair market value as of the time of donation

Question 14

What is the difference between a donation inter vivos and a donation mortis causa?

a) A donation inter vivos is made during the donor’s lifetime, while a donation mortis causa is made after the donor’s death.
b) A donation inter vivos is subject to donor’s tax, while a donation mortis causa is subject to estate tax.
c) A donation inter vivos is made voluntarily, while a donation mortis causa is made by will.
d) All of the above

Answer 14

D. ALL OD THE ABOVE

Question 15

What is the difference between a gift and an inheritance?
1 point
a) A gift is made during the donor’s lifetime, while an inheritance is received after the donor’s death.
b) A gift is subject to donor’s tax, while an inheritance is subject to estate tax.
c) A gift is made voluntarily, while an inheritance is received by right.
d) All of the above

Answer 15

D. ALL OF THE ABOVE

Question 16

What is the purpose of the exemption for gifts to educational, charitable, religious, etc. organizations?
1 point
a) To encourage philanthropy
b) To reduce the tax burden on these organizations
c) To ensure that these organizations are properly funded
d) All of the above

Answer 16

D

Question 17

What is the deadline for filing and paying the donor’s tax return?
1 point
a) Within one (1) year from the date of the gift
b) Within 30 days after the date the gift is made or completed
c) Within 60 days after the date the gift is made or completed
d) Within 90 days after the date the gift is made or completed

Answer 17

B. Within 30 days after the date the gift is made or completed

Question 18

Which of the following is NOT considered a transfer subject to donor’s tax?
1 point
a) Direct gift
b) Gift through creation of a trust
c) Condonation of debt
d) Sale of real property at a price below fair market value
e) Inheritance

Answer 18

e) Inheritance

*** it is subject to ESTATE TAX

Question 19

Which of the following is NOT an element of a taxable donation?

1 point
a) Capacity of the donor to transfer property
b) Donative intent
c) Delivery
d) Acceptance by the donee
e) Payment of donor’s tax

Answer 19

e) Payment of donor’s tax

Question 20

What is the purpose of the “vanishing deduction” for estate tax?

1 point
a) To reduce the amount of estate tax payable.
b) To prevent double taxation on the same property.
c) To encourage charitable donations.
d) To simplify estate tax calculations

Answer 20

b) To prevent double taxation on the same property.

Question 21

What is a codicil?
1 point
a) A legal document that revokes a will.
b) A supplement or addition to a will.
c) A legal document that appoints an executor or administrator.
d) A legal document that transfers ownership of property during the lifetime of the donor.

Answer 21

b) A supplement or addition to a will.

Question 22

What is the deadline for filing an estate tax return under the TRAIN Law?

1 point
a) Within six months after death.
b) Within one year after death.
c) Within two years after death.
d) Within five years after death.

Answer 22

b) Within one year after death.

Question 23

Estate tax is _______.

a. A property tax because it is imposed on the property transmitted by the decedent to his heirs.

b. An indirect tax because the burden of paying the tax is shifted on the executor or any of the heirs of the decedent
c. An excise tax because the object of which is the shifting of economic benefits and enjoyment of property from the dead to the living
d. A poll tax because it is also imposed on residents of the Philippines whether Filipino citizens or not

Answer 23

c. An excise tax because the object of which is the shifting of economic benefits and enjoyment of property from the dead to the living

Question 24

The following are the elements of succession, except:

a. Decedent
b. Estate
c. Heir
d. Executor

Answer 24

Correct answer
d. Executor

Question 25

To prevent undue avoidance of tax, inter-vivos disposition in contemplation of death is subject to

0/1
a. Donor’s tax
b. Estate tax
c. Income tax
d. Excise tax

Answer 25

Correct answer
b. Estate tax

Question 26

The following are the requisites of a donation for purpose of the donor’s tax, except one.

a. Capacity of the donor
b. Capacity of the donee
c. Delivery of the subject matter of gift
d. Donative intent

Answer 26

Correct answer
b. Capacity of the donee

Question 27

Which of the following is subject to donor’s tax?

0/1
a. Those made between persons who were guilty of adultery or concubinage at the time of the donation
b. Those made to conceived and unborn children
c. Those made to a public officer by reason of his office
d. Those made between husband and wife during their marriage

Answer 27

Correct answer
a. Those made between persons who were guilty of adultery or concubinage at the time of the donation

Question 28

If the gift is made in properties, it shall be appraised at its:

0/1
a. Fair market value as of the time the donor’s tax return is filled
b. Fair market value as of the time of donation
c. Historical cost at the time the donated property was acquired
d. Value in the hands of the donor

Answer 28

Correct answer
b. Fair market value as of the time of donation

Question 29

What is the purpose of the “Exemption/Deductions” in the donor’s tax computation?

0/1
a) To reduce the amount of the taxable gift
b) To increase the amount of the taxable gift
c) To determine the amount of the exemption
d) To ensure that the donor’s tax is paid in full

Answer 29

Correct answer
a) To reduce the amount of the taxable gift

Question 30

What is the difference between a resident citizen and a non-resident alien for donor’s tax purposes?

0/1
a) A resident citizen is subject to donor’s tax on gifts made within and outside the Philippines, while a non-resident alien is only subject to donor’s tax on gifts made within the Philippines.
b) A resident citizen is subject to a higher donor’s tax rate than a non-resident alien.
c) A resident citizen is required to file a donor’s tax return, while a non-resident alien is not.
d) There is no difference between a resident citizen and a non-resident alien for donor’s tax purposes.

Answer 30

Correct answer
a) A resident citizen is subject to donor’s tax on gifts made within and outside the Philippines, while a non-resident alien is only subject to donor’s tax on gifts made within the Philippines.

Question 31

Which of the following is NOT considered a transfer subject to donor’s tax?
0/1
a) Direct gift
b) Gift through creation of a trust
c) Condonation of debt
d) Sale of real property at a price below fair market value

e) Inheritance

Answer 31

Correct answer
e) Inheritance

Question 32

Which of the following is NOT an element of a taxable donation?

0/1
a) Capacity of the donor to transfer property
b) Donative intent
c) Delivery
d) Acceptance by the donee
e) Payment of donor’s tax

Answer 32

Correct answer
e) Payment of donor’s tax