Accountancy Department

Taxation Quizzer (Transfer and Business Tax)

1. Mr. Lee donated a real property worth P100,000 to a family relative, Sara
Lee, who happens to be his 2nd cousin. He comes to you now to determine
the applicable tax consequence of his donation. As his client, what would
you tell Mr. Lee?
a. Being a relative, Mr. Lee is subject to the schedular tax rate.
b. Being a 2nd cousin, Mr. Lee is subject to the 30% fixed rate.
c. Being a stranger, Mr. Lee is subject to the 30% fixed rate.
d. None of the above
2. Transfer taxes, like donors and estate tax, is a tax imposed on ones right to
make
i. Inter-vivos transfers
ii.
Mortis Causa transfers
iii.
Onerous transfers
iv.
Casual transfers
a. i only
b. i and ii only
c. i, ii, and iii only
d. all of the above
3. Mang Inasar donated to his ailing wife a sum of money on account of her
cancer therapy. The amount is considered moderate. What is the status of
the donation made between the husband and wife?
a. The donation is valid because it is moderate and made on occasion of
family distress.
b. The donation is void for being made not under family rejoicing.
c. The donation is valid because it will be classified as donation mortis
causa.
d. The donation is void under void-for-vagueness doctrine.
4. A deed of donation made in foreign country without following the requisites
mentioned under Philippine laws when valid there as such shall likewise be
valid here following the doctrine of
a. Lex loci celebrationis
b. Lex loci nationali
c. Praeter intentionem
d. Jus soli
5. Mr. Ben sold properties for insufficient consideration. What potential tax
consequences might arise from the pertinent transaction?
a. Business tax only
b. Business tax and transfer tax
c. Business tax, income tax, and transfer tax
d. Business tax, income tax, donors tax
6. Mr. Ben Inc. sold properties for insufficient consideration. What potential tax
consequences might arise from the pertinent transaction?
a. Business tax only
b. Business tax and donors tax
c. Business tax, income tax, and estate tax
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d. Business tax, income tax, and donors tax

7. The following forms part of judicial expenses, except
a. Attorneys fee
b. Accountants fee
c. Appraisers fee
d. Probate costs
8. In computing for vanishing deductions, which of the following is incorrect?
a. Initial value is the higher between FMV at the date of transfer or date of
death
b. Initial basis is the initial value less by any indebtedness assumed
c. Final basis is the initial basis less ordinary deductions
d. Vanishing deduction is the final basis multiplied by the applicable
vanishing rate
9. A married B. Months later B died. Because of so much depression, weeks
later, A died as well leaving a family home worth P1, 500,000. For purposes
of determining deductions of As gross estate, how much will the estate of A
be able to claim as regards family home deduction?
a. 1,000,000
b. 1,500,000
c. 750,000
d. 375,000
10.
a.
b.
c.
d.

Which is an excise tax?

Property tax
Personal tax
Income tax
None of the above

11.
A, failed to pay his tax consequences. What is the nature of the tax
liability?
a. Civil
b. Penal
c. Political
d. Nugatory
12.
Which of the following do not diminish the hereditary estate of the
decedent?
a. Judicial expenses
b. Medical expense
c. Transfer for public use
d. Funeral expense

End

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