TAX3703 - Taxation of Estates Taxation: | latest |COMPREHENSIVE MOST TESTED QUESTIONS AND VERIFIED SOLUTIONS

TAX3703 - Taxation of Estates
Taxation: | latest |COMPREHENSIVE
MOST TESTED QUESTIONS AND
VERIFIED SOLUTIONS




1. It refers to a mode of transferring & acquiring properties left by the decedent.
a. Estate transfer c. Donation
b. Succession d. Execution of a will - Answer--b. Succesion

The property, rights & obligations of a person which are not extinguished by his death &
those which have accrued thereto since the opening of succession.
a. Inheritance c. Estate
b. Capital d. Devisee - Answer--c. Estate

3. The estate tax accrues from the moment of:
a. The fixing of notice of death
b. Expiration of a months after death
c. The death of the decedent
d. The filing of estate tax return - Answer--c. The death of the decedent

The gift tax paid on a donation mortis causa, if any:
a. Exempts the property from estate tax.
b. Has no effect since the gift will be subject to another gift tax.
c. Shall form as a tax credit to be deducted from the estate tax due.
d. Is invalid & the tax will not be credited at all - Answer--c. Shall form as a tax credit to
be deducted from the estate tax due

5. Which shall not form part of the gross estate of a decedent:
a. Intangible personal property of non-resident alien decedent without reciprocity law
b. Revocable transfer
c. Transfer passing special power of appointment

, d. Life insurance where the executor is the beneficiary & it is irrevocable - Answer--c.
Transfer passing special power of appointment

6. All of the following are considered intangible in the Philippines, except:
a. Franchise which must be exercised in the Phil.
b. Shares obligations or bonds which issued by any corporation or sociedad anonym
organized or constituted in the Philippines in accordance with it laws.
c. Shares, obligations or bonds by any foreign corporation 75%.of the business of which
is located in the Philippines.
d. Shares, obligations of bonds issued by any foreign corporation of such shares,
obligations or bonds have acquired a business situs in the Philippines.
e. Shares or rights in any partnership, business or industry established in the
Philippines - Answer--c. Shares, obligations or bonds by any foreign corporation 75%.of
the business of which is located in the Philippines.

A person who inherits personal property thru a will:
a. Devisee c. Heir
b. Legatee d. Successor - Answer--b. Legatee

A person who inherits real property thru a will:
a. Devisee c. Heir
b. Legatee d. Successor - Answer--a. Devisee

Succession wherein the decedent did not leave any will:
a. Voluntary succession c. Mixed succession
b. Legal succession d. Testamentary succession - Answer--b. Legal succession


Which statement is false about succession:
a. The successor inherits all the transmissible property of a decedent including his
liabilities.
b. The successor can be made liable for the obligations of the decedent beyond the
value of the asset he received.
c. In succession, fruits and credits maturing after the death of the decedent pass to the
heirs even if they were not subjected to estate tax.
d. In succession, the successor can refuse the inheritance. - Answer--b. The successor
can be made liable for the obligations of the decedent beyond the value of the asset he
received.

One of statement is false:
a. Estate tax is an excise tax.
b. Estate tax is transfer tax on donation mortis causa.
c. The object of estate tax is to tax the transfer of the property from the dead to the
living.
d. Estate tax and inheritance tax are the same. - Answer--d. Estate tax and inheritance
tax are the same.