1 Harry owned shares of stocks of San Miguel Corporation. He purchased the shares for Php700,000.

He sold the shares,

directly to his brother Celso, for Php900,000 at a time when the fair market value of the shares was Php1,000,000.
Assuming there are no other taxable donations made by Harry during the calendar year, the donor’s tax due is
A. Php12,000 B. Php30,000 C. Php0 D. Php45,000
2 If a debtor renders service to the creditor, and in consideration thereof the latter condoned the debt of the former. Such
condonation shall be treated as:
A. Gift B. Capital Contribution C. Donation Inter vivos D. Payment of Income
3 Statement 1: Vanishing deduction is always a deduction from the exclusive properties under the regime of conjugal
partnership of gains.
Statement 2: Vanishing deductions is always a deduction from the exclusive properties under the regime of absolute
community.
A. Both statements are correct C. Only the First statement is correct
B. Both statements are incorrect D. Only the Second statement is correct
4 Arnaldo, citizen and resident of China, died on October 17, 2021. He left behind included in his gross estate shares of stocks
of San Miguel Corporation, a domestic corporation. The aforementioned shares of stocks were inherited on November 17,
2020. What percentage of deduction will be used in computing his allowable vanishing deduction?
A. 80% of the value taken as basis of vanishing deduction;
B. 100% of the value taken as basis of vanishing deduction;
C. 60% of the value taken as basis of vanishing deduction;
D. 40% of the value taken as basis for vanishing deduction.
5 The estate tax is determined by multiplying 6% of:
A. Gross estate within and outside of the Philippines of a decedent who was Chinese and resident of the Philippines.
B. Net taxable estate within the Philippines of a decedent who was resident and citizen of China.
C. Gross estate within the Philippines of a decedent who was resident and citizen of China.
D. Net taxable estate within and outside of the Philippines of a decedent who was a resident and citizen of China.
6 Intangible properties located in the Philippines is included in the gross estate of the following except:
A. Resident and citizen of the Philippines
B. Resident of the Philippines and citizen of Japan
C. Resident and citizen of the United States of America, with reciprocity
D. Resident of Japan and citizen of the United states of America, with reciprocity
7 The following are intangible properties in the Philippines, except:
A. Shares, obligations or bonds issued by any corporation or sociedad anonima organized or constituted in the Philippines
in accordance with its laws.
B. Shares, obligations, or bonds issued by any foreign corporation sixty-five percent (65%) of the business of which is
located in the Philippines.
C. Shares, obligations or bonds issued by any foreign corporation if such shares, obligations or bonds have acquired
business situs in the Philippines.
D. Shares or rights in any partnership, business or industry established in the Philippines
8 The following are inclusions in the gross estate of the decedent, except
A. Donations mortis causa
B. Donations inter vivos
C. Transfer in contemplation of death
D. Transferred to the decedent under general power of appointment
9 As one of the properties whereby the decedent exercises owner’s interest, proceeds of life insurance, on the life of the
decedent is generally included in the gross estate, except
A. Beneficiary is the estate, executor or administrator and the designation of the beneficiary on the life insurance policy is
revocable;
B. Beneficiary is the estate, executor or administrator and the designation of the beneficiary on the life insurance policy is
irrevocable;
C. Beneficiary is any person other than the estate, executor or administrator and the designation of the beneficiary is
revocable;
D. Beneficiary is other than the estate, executor or administrator and the designation of the beneficiary is irrevocable.
10 Generally, the following capital assets are subject to donor’s tax in case there is a transfer for less than adequate and full
consideration, except:
A. Real Property B. Intangible Property C. Personal Property D. Tangible Property
11 The list provided below is excluded from the gross estate, except:
A. Exclusive property of the surviving spouse.
B. Properties outside the Philippines of a non-resident alien decedent.
C. Intangible personal property outside of the Philippines of non-resident alien when the rule of Reciprocity applies.
D. Share of the surviving spouse in the conjugal/community properties;
12 The following are transfers exempt from transfer tax, except
A. Transmission from the first heir or donee in favor of another beneficiary in accordance with the desire of the
predecessor
 B. Transmission or delivery of the inheritance or legacy by the fiduciary heir or legatee to the fideicommissary
C. The merger of usufruct in the owner of the naked title
D. All bequests, devises, legacies or transfers to social welfare, cultural and charitable institutions
13 The following are the requisites of donation, except:
A. Acceptance of the donor C. Donative Intent
B. Delivery whether actual or constructive D. Capacity of the donor to dispose his property
14 Zealot International Incorporated (Parent) is conducting a global corporate restructuring. One of its subsidiaries, Zlot PH Inc.,
owes its parent Php480,000,000 and has no capacity to pay out said loan to its parent as it has been in capital deficit
amounting to Php960,000,000. As part of the aforementioned global restructuring, Parent decided to condone the
receivable. One of the following statements is correct.
A. The condonation of said debt amounts to a gift and Parent is liable to pay donor’s tax amounting to Php28,785,000
B. The debt which was condoned is reportable as other income to be added in the gross income of Zlot PH during the year
of condonation.
C. The bad debt written off is not deductible from the gross income of the Parent considering the debt is between related
parties
D. The condonation of debt is not subject to income tax nor to donor’s tax considering it is pursuant to a legitimate
corporate restructuring and absent any donative intent.
15 The estate of the following deceased persons may claim credit for estate taxes paid to a foreign country except for a:
A. Filipino citizen residing in California
B. Filipino national residing in Marikina
C. Korean national residing in Hong Kong
D. Chinese national residing in Baguio
16 Don Fortunato, a widower, died in May, 2011. In his will, he left his estate of P100 million to his four children. He named his
compadre, Don Epitacio, to be the administrator of the estate. When the BIR sent a demand letter to Don Epitacio for the
payment of the estate tax, he refused to pay claiming that he did not benefit from the estate, he not being an heir. Forthwith,
he resigned as administrator. As a result of the resignation, who may be held liable for the payment of the estate tax?
A. Don Epitacio since the tax became due prior to his resignation.
B. The eldest child who would be reimbursed by the others.
C. All the four children, the tax to be divided equally among them.
D. The person designated by the will as the one liable.
17 The person whose property is transmitted through succession, whether or not he left a will.
A. Successor B. Legatee C. Heir D. Decedent
18 The person called to the succession, either by the provision of a will or by operation of law.
A. Heir B. Legatee C. Devisee D. Decedent
19 Which is incorrect?
A. Donations of non-resident aliens involving properties located abroad to residents of the Philippines is exempt from
donor’s tax
B. Renunciation of inheritance by an heir to another is not subject to donor’s tax
C. Donation by a non-resident citizen to a non-resident alien is exempt from donor’s tax
D. Gifts are reckoned on an annual basis; the tax is determined for the whole gift throughout the year; hence, a
computation is made every time a donation is made
20 First Statement - Condonation of debt whereby the debtor is required to render some service is considered a taxable gift.
Second Statement – Encumbrance assumed by the donor is a deduction from the gross gift.
A. True, True B. True, False C. False, False D. False, True
21 The applicable donor’s tax rate is.
A. 6% B. 4% C. 2% D. 0%
22 The following are exclusions/deductions from gross gift, except
A. Gift made in favor of the Government or any political subdivisions
B. Gift made in favor of the International Rice Research InstitutePhp50,000 cash in bank of the decedent, reported stolen
to the BIR 30 days after the decedent’s death;
C. Gift made in favor of the Development Academy of the Philippines
D. Gift in favor of non-profit educational and/or charitable, religious, cultural or social welfare corporation, whereby 40% of
said gift is to be used for administration purpose
23 The following losses are deductible from the gross estate, except:
A. Car donated mortis causa, struck by lightning 2 hours after the decedent’s death;
B. 2 carats diamond ring reported stolen by the decedent, a night before his death;
C. Php50,000 cash in bank of the decedent, reported stolen to the BIR 30 days after the decedent’s death;
D. A diamond necklace fairly valued at the time of the decedent’s death at Php2,000,000. It was reported stolen, 45 days
after the decedent’s death. The diamond necklace was insured whereby the insurance company paid Php1,500,000 to
the estate, due to the loss of the diamond necklace.
24 The following are rules for deductibility of claims against the estate, except
 A. The debt instrument must be duly notarized at the time the indebtedness was incurred such promissory notes or
contract of loans.
B. The debt instruments on debt granted by financial institution, where notarization is not part of the business practice of
the financial institution-lender, need not be not be notarized.
C. Duly notarized certification from the creditor as to the unpaid balance of the debt, including interest as of the time of
death.
D. A statement under oath, executed by the administrator or executor of the estate reflecting the disposition of the
proceeds of the loan if said loan was contracted within five (5) years prior to the death of the decedent
25 The following are the requisites in order that the donation of an immovable may be valid, except:
A. The deed of donation must be in writing and must be in a public instrument, i.e., notarized
B. The deed of acceptance must be in a separate document.
C. The donor shall be notified, in an authentic form, of the acceptance by the donee and this step shall be noted in both
instruments
D. The donation and acceptance must be take place during the lifetime of the donor
26 The following are exclusions/deductions from the gross gift, except
A. Gift given by a parent (donor), on account of marriage of the donor’s child, at an amount not exceeding Php10,000
B. Encumbrance assumed by the donee.
C. Donations of personal computers, laptops, tablets, or similar equipment appropriate for use in schools, donated for
distribution to public schools regardless of level, including state universities and colleges (SUCs) and vocational
institutions under TESDA (Bayanihan to Recover As One Act)
D. Donations to Intramuros Administration
27 The following are taxes deductible from the gross estate of a decedent, except
A. Estate tax
B. Real property tax accrued in the year of death, paid before death
C. Income tax on income earned before death and remaining unpaid
D. Unpaid donor’s tax on property donated before death
28 The following are the requisites for deductibility of retirement pay received by the decedent as a consequence of the latter’s
death, pursuant to Republic Act 4917.
A. The retirement benefit received is in accordance with a reasonable private benefit plan maintained by the employer.
B. The retiring employee has been with the same employer for a period of at least ten (10) years.
C. The retiring employee is at least sixty – five (65) years of age.
D. The retirement benefit is to be received by the employee only once.
29 The following are characteristics of estate taxation of a non-resident alien, except:
A. The gross estate shall comprise of properties located within the Philippines only.
B. Not allowed to claim family home deductions.
C. Not allowed to claim vanishing deductions.
D. Allowed deduction for expenses, losses, indebtedness, taxes, etc.
30 The following are the deductions allowed to the estate of a non-resident alien decedent, except
A. Property previously taxed A.K.A Vanishing deductions
B. Transfers for public use
C. Net share of the surviving spouse in the net conjugal/community property
D. Standard deduction of Php500,000
E. Full Claims against the estate and Insolvent Person, Losses, and Taxes
31 The estate of citizen or resident decedent may claim a standard deduction of
A. Php5,000,000 B. Php500,000 C. Php2,000,000 D. Php200,000
32 This is not part of the conjugal property
A. Those acquired by onerous title during the marriage at the expense of the common fund.
B. Those acquired by industry or work of either of them.
C. The fruits, rents or interest received or due during the marriage coming from the conjugal property or from the exclusive
properties of the spouses.
D. Those acquired during the marriage by gratuitous title

Items 33 to 36 pertain to the following information:

Proceeds of life insurance shall be included in the gross estate if the beneficiary designated is
33 The estate and the designation is
A. Revocable
B. Irrevocable
C. Whether revocable or irrevocable
D. Partly revocable, partly irrevocable
34 The executor and the designation is
A. Revocable
B. Irrevocable
 C. Whether revocable or irrevocable
D. Partly revocable, partly irrevocable
35 The administrator and the designation is
A. Revocable
B. Irrevocable
C. Whether revocable or irrevocable
D. Partly revocable, partly irrevocable
36 A person other than the estate, executor or administrator and the designation is
A. Revocable
B. Irrevocable
C. Whether revocable or irrevocable
D. Partly revocable, partly irrevocable

37 A died leaving a farmland. In his will, he transferred the ownership thereof to B but subject to the condition that C will have
the right to use the land for a period of ten years (usufruct). In the seventh year, however, C died and in C’s will he
surrendered his right over the land to
A. The transfer is subject to donor’s tax.
B. The transfer is subject to estate tax.
C. The transfer is both in inclusion and deduction from the gross estate.
D. The above is a tax-exempt transfer
38 When is the donation completed?
A. The moment the donor knows of the acceptance by the donee.
B. The moment the donated property is delivered, either actually or constructively, to the donee.
C. Upon payment of the donor’s tax
D. Upon execution of the deed of donation
39 The donor’s tax is a
A. Property tax on the property transferred.
B. Personal tax on the person who transferred the property .
C. Tax imposed on the transfer of property by way of gift inter vivos.
D. Tax imposed on the transfer of property by way of gift mortis causa
40 Dowries valued P10,000 made on account of marriage by parents to their children is subject to
A. Donor’s Tax
B. Estate Tax
C. Income Tax
D. Exemption
41 Contracts without the essential element of consideration is considered as
A. Void
B. Donation
C. Unenforceable
D. Rescissible
42 This is not part of the gross estate of the decedent
A. Conjugal property C. Share of surviving spouse
B. Community property D. Exclusive property of the surviving spouse

43 The estate tax return shall be supported with a statement duly certified by a CPA if the gross estate exceeds
A. 5,000.000 B. 1,000,000 C. 2,000,000 D. 10,000,000
 44 – 45
The following data are pertaining to the estate of a citizen decedent:
Philippines China Japan USA
Gross Estate ₱18,750,000 ₱3,000,000 ₱4,500,000 ₱6,000,000
Allowable Deductions 15,750,000 1,500,000 5,250,000 2,250,000
Estate Tax Paid - 37,500 - 180,000
44 How much is the estate tax due?
A. ₱450,000
B. ₱405,000
C. ₱540,000
D. ₱315,000

45 How much is the tax credit limit 1?

A. ₱217,500
B. ₱180,000
C. ₱225,000
D. ₱270,000

46 How much is the tax credit limit 2?

A. ₱217,500
B. ₱180,000
C. ₱225,000
D. ₱270,000

47 How much is estate tax payable?

A. ₱232,500
B. ₱270,000
C. ₱225,000
D. ₱180,000

85 – 88
Julio made the following gifts to his relatives:
Philippines
Gross gift ₱750,000 ₱500,000 ₱250,000 ₱500,000
Deductions 250,000 200,000 150,000 150,000
Tax paid - 25,000 12,000 10,000
48 How much is the donor’s tax payable before tax credit?
A. ₱60,000
B. ₱75,000
C. ₱105,000
D. ₱120,000

49 How much is the donor’s tax credit limit 1?

A. ₱27,000
B. ₱29,200
C. ₱24,600
D. ₱25,000
50 How much is the donor’s tax credit limit 2?
A. ₱47,000
B. ₱36,000
C. ₱29,000
D. ₱40,000

51 How much is the donor’s tax payable before tax credit?

A. ₱34,000
B. ₱30,800
C. ₱32,400
D. ₱35,000

52 – 57
The estate of Kidlat, resident citizen decedent, single, who died April 1, 2022, were as follows:
House and lot (Family Home) ₱17,000,000
Vacation house in Batanes 8,550,000
Property in La Union 3,300,000
Rental income on the property in La Union up to the time of death 1,200,000
Other properties 6,000,000
Funeral expenses 420,000
Donation to Makati City 225,000
Donation to GOCC 150,000
Judicial expenses 800,000
Mortgage (70% paid) 1,000,000
Casualty losses incurred on December 10, 2022 600,000
Claims against the estate 1,400,000
Medical expenses within 1 year prior to death, fully receipted 1,900,000
Claims against an insolvent person 750,000
52 The gross estate of Kidlat is –
A. ₱36,275,000
B. ₱37,025,000
C. ₱36,050,400
D. ₱36,800,000

53 How much is the ordinary deduction?

A. ₱2,525,000
B. ₱3,275,000
C. ₱3,675,000
D. ₱3,050,000

54 How much is the special deduction?

A. ₱10,000,000
B. ₱17,000,000
C. ₱15,000,000
D. ₱22,000,000

55 How much is the non-deductible?

A. ₱4,270,000
B. ₱3,795,000
C. ₱3,970,000
D. ₱4,495,000
56 How much is the net estate?
A. ₱17,600,000
B. ₱18,000,000
C. ₱18,750,000
D. ₱17,825,000

57 How much is the estate tax due?

A. ₱1,069,500
B. ₱1,170,000
C. ₱1,125,000
D. ₱1,080,000

58-59
Mark, sold a real property used in business for ₱600,000 to his brother-in-law. The assessed value and zonal value were ₱750,000
and ₱1,000,000 respectively.
58 The transaction is subject to what type of tax?
A. Estate Tax
B. Value-added Tax
C. Donor’s Tax
D. Income Tax

59 How much is the taxable income?

A. ₱1,000,000
B. ₱750,000
C. ₱600,000
D. ₱400,000

60 – 61
Bugoy donated his real property with a cost of ₱10,000,000 and fair market value of ₱14,000,000 during the time of purchase to
Michael through his last will and testament. It includes a provision that Michael can transfer the property to anyone. During the time
of Bugoy’s death, the fair market value is ₱12,000,000. Michael transferred the property to Daryl in contemplation of death with a
zonal value of ₱11,000,000.
60 What type of power is applicable in the problem and how much should be included in Bugoy’s gross estate?
A. special power of appointment; ₱14,000,000
B. irrevocable transfer; ₱12,000,000
C. merger of usufruct in the owner of the naked title; ₱14,000,000
D. general power of appointment; ₱12,000,000

61 What type of power is applicable in the problem and how much should be included in 1st heir gross estate?
A. merger of usufruct in the owner of the naked title; ₱11,000,000
B. special power of appointment; ₱12,000,000
C. revocable transfer; ₱12,000,000
D. general power of appointment; ₱11,000,000

62 – 63
Jeff donated his real property with a cost of ₱10,000,000 and fair market value of ₱14,000,000 during the time of purchase to Chuck
through his last will and testament. It includes a provision that Chuck can transfer the property only to his son, James. During the
time of Jeff’s death, the fair market value is ₱12,000,000. Chuck died and transferred the property to James with a zonal value of
₱11,000,000 and assessed value of ₱11,500,000.
62 What type of power is applicable in the problem and how much should be included in gross estate transferred to the 1st heir?
A. general power of appointment; ₱11,500,000
B. irrevocable transfer; ₱11,000,000
C. merger of usufruct in the owner of the naked title; ₱14,000,000
D. special power of appointment; ₱12,000,000
63

What type of power is applicable in the problem and how much should be included in gross estate transferred to the 2nd heir?
A. general power of appointment; ₱12,000,000
B. revocable transfer; ₱14,000,000
C. merger of usufruct in the owner of the naked title; ₱11,000,000
D. special power of appointment; ₱11,500,000

64 Dowries valued P10,000 made on account of marriage by parents to their children is subject to
A. Donor’s Tax
B. Estate Tax
C. Income Tax
D. Exemption
65 A tax minimization scheme which is done by spreading the gift over numerous calendar years to avail of lower tax
liability –
A. Spread-out method
B. Donation of life insurance
C. Splitting of gift
D. Void donation
66 This is not part of the gross estate of the decedent
A. Conjugal property C. Share of surviving spouse
B. Community property D. Exclusive property of the surviving spouse
67 The estate tax return shall be supported with a statement duly certified by a CPA if the gross estate exceeds
A. ₱5,000.000 B. ₱1,000,000 C. ₱2,000,000 D. ₱10,000,000
68 A gift that is incomplete because of reserved powers, becomes complete when:
I. The donor renounces the power
II. The right of the donor to exercise the reserved power ceases because of the happening of some event or contingency or
the fulfillment of some condition, other than because of the donor's death
A. I and Il are correct
B. I and II are not correct
C. Only I is correct
D. Only II is correct
69 Which of the following changes is not introduced on donor's taxation by the TRAIN Law?
A. Provides extension for the filing of tax return.
B. Removes the exemption on dowries or gifts made on account of marriage.
C. Simplification of the tax rate.
D. Elimination of distinction on tax rate between relative and stranger donee.
70 Distinctions between donor's tax and estate tax, except
A. Tax rate
B. Period for payment of tax
C. Attachments to the tax return
D. Cause of transfer