TAX3703 - Taxation: Estate Tax (Questions With
Expert 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 Correct 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 Correct 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 Correct 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 Correct 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
Correct 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 Correct 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 Correct Answer - b. Legatee
A person who inherits real property thru a will:
a. Devisee c. Heir
b. Legatee d. Successor Correct Answer - a. Devisee
Succession wherein the decedent did not leave any will:
a. Voluntary succession c. Mixed succession
b. Legal succession d. Testamentary succession Correct 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. Correct 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.
Expert 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 Correct 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 Correct 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 Correct 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 Correct 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
Correct 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 Correct 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 Correct Answer - b. Legatee
A person who inherits real property thru a will:
a. Devisee c. Heir
b. Legatee d. Successor Correct Answer - a. Devisee
Succession wherein the decedent did not leave any will:
a. Voluntary succession c. Mixed succession
b. Legal succession d. Testamentary succession Correct 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. Correct 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.
