TAX - Can be your reviewer PDF

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Pre-assessment: True or False:True 1. Estate tax is a tax on the right to transfer property at death and on certain transfers which are made by law the equivalent of testamentary disposition and is measured by the value of the property. True 2. Estate tax is an excise tax. True 3. The taxpayer in es...

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Pre-assessment: True or False: True 1. Estate tax is a tax on the right to transfer property at death and on certain transfers which are made by law the equivalent of testamentary disposition and is measured by the value of the property. True 2. Estate tax is an excise tax. True 3. The taxpayer in estate taxation is the estate of the decedent as a judicial person. False 4. Estate tax accrues as of the date of the actual possession or enjoyment of the estate by the beneficiary. False 5. Every will may be in writing and executed in a language in a language not necessarily known to the testator. False 6. Cancellation of existing debt as payment for services rendered by the debtor to the creditor is a gratuitous transfer. False 7. A sale is a form of transfer transaction that requires payment of transfer tax. False 8. A sale on installment basis is considered as an enormous transfer. False 9. A gift out of love to former girlfriend is an enormous transfer. True 10. Rights which are purely personal are not transmissible for they are extinguished by death.

Activity/Evaluation: Direction: Select the best answer. a 1. The object of estate tax is the: a. Right to transmit b. Decedent c. Properties of the decedent d. Beneficiaries c 2. Mortis causa transfer of property is effected a. When the property is received by the heir. b. When the court awarded the ownership of property to a particular heir. c. Upon the death of the decedent. d. Upon payment of estate tax. c 3. The tax imposed on the transfer of property without consideration between two or more persons who are living at the time the transfer is made. a. Estate tax b. Business tax c. Donor’s tax d. Personal tax a 4. It is a mode of acquisition by virtue of which, the property, rights, and obligations, to the extent of the value of the inheritance of a person are transmitted through his death to another wither by his will or by operation of law. a. Succession b. Purchase c. Barter d. Donation

d 5. Which of the following is not a compulsory heir? a. Legitimate children and descendants, with respect to their legitimate parents or ascendants. b. In default of letter a, legitimate parents or ascendants, with respect to their legitimate children or descendants c. Widow or widower d. Relative by affinity b 6. Heir who inherits personal property by will is known as a. Devisee b. Legatee c. Compulsory heir d. Done c 7. Which is not true about inheritance? a. Inheritance includes property, rights, and obligations of a person that have accrued since the opening of the succession. b. Inheritance includes devise and legacy. c. Inheritance includes property, rights, and obligations extinguished by a person’s death. d. Inheritance includes property, rights, and obligations of a person existing at the time of death. b 8. A person appointed by the testator to carry out the provisions of the will is called a. Administrator b. Executor c. Enforcer d. Beneficiary b 9. Succession which result from the designation of an heir, made in a will executed in the form prescribed by law is known as a. Legal or intestate succession b. Testamentary succession c. Mixed succession d. Ordinary succession a 10. 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. Legitimes b. Free potion c. Legacy d. Bequest

Reinforcement:

Direction: Select the best answer. b 1. Which is not true about relationships? a. The relation subsisting between son, father, and grandfather, in that order is an example of an ascending lineal consanguinity. b. Consanguinity is the relation of persons ascending from the same stock or common descendants. c. Collateral consanguinity is that which subsists between persons who have the same ancestors, but who do not descend or ascend one from the other. d. Affinity is connection existing in consequence of a marriage between each of the married spouse and kindred of the other. b 2. Which is true? Legal or intestate succession does not take place. a. If a person dies without a will, or with a void will, or one which has subsequently lost its validity. b. When the heir instituted is capable of succeeding c. When the will does not dispose of all the property belonging to the testator. d. If the suspensive condition attached to the institution of heir does not happen or is not fulfilled. b 3. Which of the following is a valid will? a. That which reduces the legitime of compulsory heirs. b. That which increase the share of one heir without impairing the legitime of the other heirs. c. That which transfer the legitime of one heir to the other heir. d. That which impair the legitime of compulsory heirs. b 4. In which of the following cases is a will 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. d 5. Which is not true about an inheritance? a. The acceptance of an inheritance may be express or tacit. b. The express acceptance of an inheritance may be made in a public or private document. c. An heir may accept or repudiate an inheritance. d. The inheritance and repudiation takes effect upon death of the decedent. b 6. Which of the following statements is true? a. The sharing of heirs in intestate succession does not satisfy the rule on legitime. b. The sharing of heirs in testamentary succession must satisfy the rules on legitime. c. A compulsory heir cannot receive more than his legitime. d. There cannot be disinheritance for compulsory heir.

b 7. Statement 1: Under the law on legitime, of only survivor is the widow or widower, she or he shall be entitled to one half of the hereditary estate of the deceased spouse, and the testator may freely dispose of the other half. Statement 2: Legitimate and illegitimate child has equal share under intestate distribution of estate. a. Statements 1 & 2 are false b. Statement 1 is true but statement 2 is false c. Statement 1 is false but statement 2 is true d. Statements 1 & 2 are true a 8. 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 d 9. Statement 1: a will is an act whereby a person is permitted, with the formalities prescribed by law, to control to a certain degree the disposition of his estate upon his death. Statement 2: a codicil is a supplement or an addition to a will, made after the execution of a will and annexed to be taken as a part thereof, by any disposition made in the original will is explained, added to, or altered. a. Statements 1 & 2 are false b. Statement 1 is true but statement 2 is false c. Statement 1 is false but statement 2 is true d. Statements 1 & 2 are true d 10. No will shall be revoked, except a. By implication of law b. By some will, codicil, or other writing executed as provided in the case of wills. c. By burning, tearing, canceling, or obliterating the will with the intention of revoking it, by the testator himself, or some other person in his presence, and by his express direction. d. All of the above e. None of the above...