QUIZ ON ESTATE TAX
1. Shares and bonds of foreign Corporations are always presumed situated abroad for transfer tax purposes.
True
2. For purposes of transfer tax, real properties are valued at the higher of the fair value and acquisition cost.
True
3. Standard deduction is claimable by non-resident alien decedent not in excess of P 5,000,000. False
4. Citizens are subject to tax transfer of properties regardless of location. True
5. Taxable transfers consist of properties transferred to other persons before death but are still owned by the
decedent at the point of death. True
6. Shares, obligations or bonds issued by a foreign corporation 80% of business of which is located in the
Philippines is considered located within the Philippines. False
7. Mr Zee died leaving the following real properties in Manila:
Fair Market values by Manila City BIR
Assessors Commissioner
House and lot P 18,000,000 P 14,000,000
Condominium unit 22,000,000 28,000,000
Totals P 40,000,000 P 42,000,000
What was the value of the real properties of Mr. Zee to be included in his gross estate?
46,000,000
8. The reciprocity rule may apply to movable personal property located in the Philippines. True
9. Share, Obligations or bonds issued by a foreign corporation 80% of the business which is located in the
Philippines is considered located within the Philippines. False
10. Inheritance refers to the property which will be transmitted to the doneers. True
11. Estate tax rate is higher than donor’s tax rate under the new Train law. (RR12-2018). False
12. The proceeds of life insurance is included in gross estate if the beneficiary is revocably designated. True
13. The reciprocity rule applies to intangible personal properties of any alien located in the Philippines. True
14. For taxable transfer, if there was no consideration received on the transfer, the value to include in the gross
estate shall be the fair market value of the property at the time of the decedent’s death. False
15. Transfer tax is the tax imposed on the right or privilege to engage in a onerous transfer of goods or services.
False
16. Properties not owned by the decedent may be included in gross estate. False
17. When there is reciprocity, the transmission of intangibles located in the Phil. Of a non-resident alien
decedent is not subject to tax. True
18. Non-resident aliens are subject to tax only or transfers of Philippines properties. True
19. Properties not owned by the decedent may be included in gross estate. False
20. For purposes of transfer tax, real properties are valued at the higher of the fair value and acquisition cost.
True
21. Listed stocks are valued at par value. False
22. Non-resident alien can claim only a fractional part of expenses, loses, indebtness, taxes and transfer for
public purpose. True
23. Non-listed common stocks are valued at their book value. True
24. An heir is a person called to the succession either by the provision of a will or by operation of law. True
25. For taxable transfer, if there was no consideration received on the transfer, the value to include in the gross
estate shall be the fair market value of the property at the time of the decedent’s death. True
