TAX3703 - Taxation of Estates exam 2025 COMPLETE
STUDY QUIDE |QUESTION AND CORRECT ANSWERS |
GET IT RIGHT!!
ESTATE TAX - ...(ANSWERS)....Estate Tax is taxation on the gratuitous transfer o
properties of the decedent to the heirs upon the decedent's death.
NATURE OF ESTATE TAX - ...(ANSWERS)....1. Excise Tax
2. Revenue or General Tax
3. Ad Valorem Tax
4. National Tax
5. Progressive Tax
What is Excise Tax - ...(ANSWERS)....Tax on the privilege to transfer properties
What is Revenue or General Tax - ...(ANSWERS)....Intended as a revenue or fiscal
measure
What is Ad Valorem Tax - ...(ANSWERS)....Dependent on the value of the estate
What is National Tax - ...(ANSWERS)....Imposed by the National government
What is Progressive Tax - ...(ANSWERS)....Determined based on a tax table of
progressive rates
, PURPOSE AND JUSTIFICATION OF ESTATE TAX - ...(ANSWERS)....1. Benefit-
Received Theory
2. Privilege Theory or State Partnership Theory
3. Ability to Pay Theory
4. Redistribution of Wealth Theory
What is Benefit-Received Theory - ...(ANSWERS)....It considers the services the
government renders in the distribution of the estate of the decedent, either by
law or in accordance with his wishes. For the performance of these services and
other benefits that accrue to the estate and the heirs, the State collects the tax.
What is Privilege Theory or State Partnership Theory -
...(ANSWERS)....Accordingly, inheritance is not a right, but a privilege granted by
the State, and large estates have been acquired only with the protection of the
State. Consequently, the State, as a "passive and silent partner" in the
accumulation of property, has the right to collect the share which is properly due
to it
What is Ability to Pay Theory - ...(ANSWERS)....This asserts that the receipt of an
inheritance, which is in the nature of unearned wealth or a windfall, places assets
in the hands of the heirs and beneficiaries thereby creating an ability to pay the
tax and thus to contribute to governmental income. The exemption of a minimum
amount of inheritance from the tax can provide for cases of need.
STUDY QUIDE |QUESTION AND CORRECT ANSWERS |
GET IT RIGHT!!
ESTATE TAX - ...(ANSWERS)....Estate Tax is taxation on the gratuitous transfer o
properties of the decedent to the heirs upon the decedent's death.
NATURE OF ESTATE TAX - ...(ANSWERS)....1. Excise Tax
2. Revenue or General Tax
3. Ad Valorem Tax
4. National Tax
5. Progressive Tax
What is Excise Tax - ...(ANSWERS)....Tax on the privilege to transfer properties
What is Revenue or General Tax - ...(ANSWERS)....Intended as a revenue or fiscal
measure
What is Ad Valorem Tax - ...(ANSWERS)....Dependent on the value of the estate
What is National Tax - ...(ANSWERS)....Imposed by the National government
What is Progressive Tax - ...(ANSWERS)....Determined based on a tax table of
progressive rates
, PURPOSE AND JUSTIFICATION OF ESTATE TAX - ...(ANSWERS)....1. Benefit-
Received Theory
2. Privilege Theory or State Partnership Theory
3. Ability to Pay Theory
4. Redistribution of Wealth Theory
What is Benefit-Received Theory - ...(ANSWERS)....It considers the services the
government renders in the distribution of the estate of the decedent, either by
law or in accordance with his wishes. For the performance of these services and
other benefits that accrue to the estate and the heirs, the State collects the tax.
What is Privilege Theory or State Partnership Theory -
...(ANSWERS)....Accordingly, inheritance is not a right, but a privilege granted by
the State, and large estates have been acquired only with the protection of the
State. Consequently, the State, as a "passive and silent partner" in the
accumulation of property, has the right to collect the share which is properly due
to it
What is Ability to Pay Theory - ...(ANSWERS)....This asserts that the receipt of an
inheritance, which is in the nature of unearned wealth or a windfall, places assets
in the hands of the heirs and beneficiaries thereby creating an ability to pay the
tax and thus to contribute to governmental income. The exemption of a minimum
amount of inheritance from the tax can provide for cases of need.
