VALUE ADDED TAX
A non-VAT registered entity and whose sales for the year did not exceed the VAT threshold is
a. Exempt from VAT
b. Subject to 0% VAT
c. Subject to percentage tax
d. Subject to 12% VAT
Who among the following is not subject to VAT?
a. VAT registered person whose gross sales do not exceed P3,000,000
b. A non-resident lessor or foreign licensor who is not VAT registered
c. Any person who is required to register under the VAT system but failed to register
d. None of the above
Which of the following statements is correct?
I. VAT may be imposed together with other percentage tax
II. VAT may be imposed together with excise tax
III. VAT and other percentage tax may be imposed together with income tax
a. II only
b. III only
c. II and III
d. I, II, and III
Under the Tax Code, the following are major internal revenue business taxes, which one is not?
a. Excise tax
b. Income tax
c. Value-added tax
d. Other percentage tax
HUGO is a certified public accountant. He applied for work and was hired by HUGAS Corporation which
is engaged in Business Process Outsourcing (BPO) handling accounting work for US entities. He was paid
for his services. How should HUGO treat such payment for business tax purposes?
a. Subject to 12% VAT
b. Subject to percentage tax
c. Exempt from VAT and Percentage tax
d. It is a zero-rated transaction
The following are kind of value-added taxes, which is not included?
a. VAT on sales of goods or properties
b. VAT on importation of goods
c. VAT on sale of service/use or lease of properties
d. VAT on exchange of foreign currencies
One of the following is not an activity subject to VAT
a. Sale in retail of goods by a dealer
b. Sale of bamboo poles by a dealer
c. Sublease of real property in the course of business
d. Importation of ordinary feeds for poultry chicken
As to tax rate, value-added tax is an example of
a. Graduated tax
b. Progressive tax
c. Regressive tax
d. Proportional tax
STALLONE is a manufacturer of fermented liquors. In making sales, all taxes on the products and
transactions are passed on to the buyers. For purposes of the value—added tax, which of the following
taxes is listed below that he pays forms part of the gross selling price?
a. Excise tax
b. Value-added tax
c. Percentage tax
d. None of the choices
Which among the following is correct?
a. A taxpayer who is subject to percentage tax on his gross receipts will also be subject to income
tax on his net income
b. All VAT-exempt taxpayers shall be subject to other percentage taxes
c. Both “a” and “b”
d. Neither “a” nor “b”
Which of the following taxes describes the value-added tax?
a. Income tax
b. Sales tax
c. Indirect tax
d. Personal tax
The tax base for sale of goods or properties is
a. Gross selling price
b. Gross receipts
c. Total landed cost
d. Gross income
PROPERTY RELATION AND DONOR’S TAX
The following are exclusive property under the system of conjugal partnership of gains, which is not?
a. Property before marriage
b. Inheritance during marriage
c. Property acquired during marriage out of exclusive money
d. Rental income on a property acquired before marriage
The vanishing deduction rate for a property previously received to decedent’s death is beyond 2 years to
3 years
a. 100 percent
b. 80 percent
c. 60 percent
d. 40 percent
Among the listed properties, 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 of redemption
d. That which is purchased with the souses common fund
The formula to compute net share of surviving spouse is
a. Gross conjugal property less charges against conjugal property
b. Net conjugal property multiplies by 2
c. Net conjugal property divides by 2
d. Net conjugal property divides by one-half
The following are elements of donation, which one is not?
a. Capacity of the done to make the donation
b. Capacity of the donor to make the donation
c. The donative intent or intent to make a gift on the part of the donor
d. The delivery and acceptance of the donation
When the done is a stranger, the tax payable by the donor shall be
a. 30% of the gross gifts
b. 30% of the net gifts
c. Based on the graduated rates
d. Based on the graduated rates or 30% of the net gifts, at the option of the donor
Reciprocity clause is applied to which of the following?
a. Nonresident alien donating real property
b. A donation of tangible property by a nonresident alien
c. When a resident alien donates intangible property
d. A donation by a nonresident alien of intangible property
Under the system of conjugal partnership of gains, the vanishing deduction is
a. A charge against exclusive property
b. A charge against community property
c. A charge against conjugal property
d. All of the above
Which of the following is a valid donation?
a. A parcel of land worth P500,000 in a private document
b. A parcel of land worth P5,000 in a private document
c. Oral donation of a cellular phone worth P4,500
d. Oral donation of a passenger motor vehicle worth P150,000
A person making a donation is required to file a tax return to the BIR at
a. The residence of the done within 30 days from the date of donation
b. The residence of the donor within 30 days from the date of donation
c. The residence of the donor at the end of the year
d. The residence of the done at the end of month when the donation was made
On February 14, Valentine’s day, SAMANTHA, a mentally defective 15-year-old girl, executed a deed of
donation to his brother OSWALD, donating a one-hectare lot worth P1,000,000 located in Virac,
Catanduanes which was also donated to SAMANTHA by his father a year ago. The donation is
a. VOID, because SAMANTHA does not own the property considering that the donation made to
her by her father is void
b. VOID, because SAMANTHA, the donor is minor and mentally defective
c. VALID, although unenforceable
d. VALID, although voidable because the donor is not capacitated to donate property
The net share of the surviving spouse is equal to
a. Gross conjugal property less charges against conjugal property
b. Net conjugal property multiplied by two
c. Net conjugal property divided by two
d. Net conjugal property divided by one-half
Which of the following is not a deduction from the gross gifts?
a. Unpaid mortgage on the donated property assumed by the done
b. Unpaid real estate tax on donated property assumed by the done
c. Diminution on the property donated specifically provided by the donor
d. Unpaid donor’s tax on the property assumed by the donee
The following are exclusive properties of each spouse, which is not?
a. That which each acquired during the marriage by lucrative title
b. That which is purchased with the exclusive money of either spouse
c. That which is acquired by exchange with other property belonging to the spouses
d. That which is brought to the marriage as his or her own
For a donation to be valid, acceptance of the donation must be made
a. During the lifetime of the donor only
b. During the lifetime of the done only
c. During the lifetime of donor and donee
d. None of the above
A tax imposed on the gratuitous transfer of property between two or more persons who are living at the
time the transfer is made is
a. Income tax
b. Transfer tax
c. Gift tax
d. Estate tax
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
Which of the following constitutes a taxable gift?
a. Free use of someone else’s property
b. A gratuitous transfer by a person of unsound mind
c. An agreement to make a future transfer which is not supported by a consideration
d. Creditor’s gratuitous condonation of a debtor’s obligation
In the absence of a marriage settlement, or when the regime agreed upon is void, the property.
a. Absolute community of properties
b. Conjugal partnership of gains
c. Absolute separation of properties
d. No property relations
SUCCESSION, TRANSFER TAX AND GROSS ESTATE
Donation mortis causa are transfers intended to take effect at the time of the decedent’s death. Hence,
the property should be valued at its fair market value at the date of the actual transfer
o True
o False
Mortis causa transfer of property is effected upon payment of estate tax
o True
o False
It deprives an heir to inherit properties by the decedent through the issuance of a will
a. Disinheritance
b. Distributable share
c. Legitimate
d. Disqualification
Who is not an intestate heir?
a. Legitimate children/descendants
b. State
c. Legitimate parents/ascendants
d. Collateral relatives within 6th degree
If the surviving heirs in an intestate succession are the parents and a legitimate child of the decedent,
what is the share of the parents in the legitime?
a. 1/3
b. ½
c. ¼
d. None
Which of the following item is considered situated outside the Philippines?
a. Franchise in the name of the decedent which is exercised in the Philippines
b. Shares of stock holdings of decedent in a foreign corporation whose business is 90% done in the
Philippines
c. Bond certificate issued by a domestic corporation owned by a non-resident decedent
d. Foreign currency deposited in bank outside the Philippines
Which of the following is not to be included in the gross estate of citizen decedent?
a. Dividend income declared, but not yet actually received the date of death
b. Share in partnership’s profit earned immediately after date of death
c. Rent income accrued before death but collected after death
d. None of the above
Adopted children, for all intents and purposes are considered as legitimate children
o True
o False
Legitimate children and their descendants succeed the parents and other ascendants, without
distinction as to sex or age, and even if they should come from different marriages.
o True
o False
Certain parts of the estate of a deceased Filipino citizen cannot be freely disposed of because Philippine
law reserves them for the compulsory heirs. This portion of the decedent’s estate is known as
a. Free portion
b. Legitime
c. Legacy
d. Bequest
A person appointed by the testator to carry out the provisions of the will is called
a. Administrator
b. Executor
c. Enforcer
d. Beneficiary
In which of the following cases a will becomes 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 estate
d. When the instituted heir is incapacitated to succeed
When will the transfer through succession be effective?
a. Upon the signing of a written will
b. Upon payment of estate tax
c. Upon death of the testator
d. Upon registration in the register of deeds
Which is not authorized to take charge of the estate during intestate period?
a. Administrator
b. Executor
c. Court
d. Heirs
Which of the following could legally effect transfer of properties through succession?
a. By virtue of a will
b. By operation of law
c. By onerous transfer
d. By both “a” and “b”
Brothers and sisters of the decedent are not compulsory heirs.
o True
o False
Which of the following is not included in the gross estate?
a. Revocable transfer where the consideration is not sufficient
b. Proceeds of life insurance where the beneficiary designated is the estate and the designation is
irrevocable
c. Revocable transfer where the power of revocation was not exercised
d. Proceeds of life insurance where the beneficiary designated is the mother and the designation is
irrevocable
Devisees and legatees are persons to whom gifts of real or personal property are respectively given by
virtue of a will
o True
o False
Which of the following is regarded as an intestate succession?
a. The will is designating the State as beneficiary of the free portion
b. The will was subsequently rendered void by circumstances
c. The will designate a part of free portion to a stranger
d. The will disposed the legitime to its rightful heir
The object estate tax is the
a. Properties of the decedent
b. Beneficiaries
c. Right to transmit
d. Decedent
A special power of appointment authorizes the done of the power to appoint only from among a
designated class or group of persons other than himself
o True
o False
If zonal value is available at date of death, and this is higher than the fair market value per assessor’s
listings of values, then the amount to be reported in the gross estate is the zonal value
o True
o False
Which of the following is subject to the rule of reciprocity?
a. Car in the Philippines by a non-resident alien decedent
b. Investment in stock in a US Corporation owned by a non-resident alien decedent
c. Investment in bonds in a US Corporation that has acquired business situs in the Philippines, and
is owned by a resident alien
d. Shares owned by a non-resident alien in a partnership established in the Philippines
