PRELIMS

1. Which of the following transfers is included in the gross estate? Transfer under general
power of appointment
2. Case 1-Designation of the beneficiary is revocable
Case 2-Designation of the beneficiary is irrevocable
Case 3-Policy is silent as to whether the designation is revocable or irrevocable
In which of the above cases will the proceeds be exempt from estate tax,
assuming that the beneficiary of the life insurance proceeds is neither the estate, the
executor nor the administrator of the estate? Case 2
3. Proceeds of life insurance shall be included in the gross estate if the beneficiary
designated is: The executor and the designation is: Whether revocable or irrevocable
4. Proceeds of life insurance shall be included in the gross estate if the beneficiary
designated is: The administrator and the designation is: Whether revocable or
irrevocable
5. Proceeds of life insurance shall be included in the gross estate if the beneficiary
designated is: A person other than the estate, executor, or administrator and the
designation is: Revocable
6. Statement 1: Taxation of the estate shall be governed by the statute of law in force the
time of distribution of the estate to the heirs. False
Statement 2: Succession takes place upon the determination of the respective share of
the heirs in the estate of the decedent. False
7. Estate tax is an excise tax
8. During A's lifetime, he decided to give B as gift his car subject to the condition that if B
does not become a CPA within three years, A shall revoke the transfer. In the second
year however, A died. False
9. The property, rights and obligations of a person which are not extinguished by his death
and those which have been accrued thereto since the opening of the succession. Estate
10. A successor to an estate, whether in a last will and testament or not. Heir
11. Which of the following is not included in the gross estate? Proceeds of life insurance
where the beneficiary designated is the mother and the designation is irrevocable
12. Proceeds of life insurance includible in the tax gross estate. Proceeds of life insurance
where the beneficiary designated is the estate and the designation is irrevocable.
13. Which of the following is incorrect? A transfer in contemplation of death for less than full
and adequate consideration in money or money's worth may result in a: taxable amount
for income tax purposes
14. A mode of acquisition by virtue of which property, rights and obligations to the extent of
the value of the inheritance, of a person are transmitted through his death to another or
others either by will or by operation of law. Succession
15. Refers to property, rights and obligations of a person which are not extinguished by his
death. Estate
16. An act whereby a person is permitted with the formalities prescribed by law, to control to
a certain degree the disposition of his estate, to take effect after his death. Will
17. The person whose property is transmitted through succession, whether or not he left a
will. Decedent
 18. The person called to the succession, either by the provision of a will or operation of law.
Heir
19. Succession which results from the designation of an heir, made in a will executed in the
form prescribed by law. Testamentary
20. Transmission of properties where there is no will, or if there is a will, the same is void or
nobody succeeds in the will. Intestate
21. Transmission of properties which is effected partly by will and partly by operation of law.
Mixed
22. An heir to a particular personal property given by virtue of a will. Legatee
23. An heir to a particular real property given virtue of a will. Devisee
24. The person nominated by a testator to carry out the directions and requests in his will
and to dispose of his property according to his testamentary provisions after his death.
Executor
25. Is a person appointed by the court, in accordance with the governing statute, to
administer and settle intestate estate and such testate estate as no competent executor
designated by the testator. Administrator
26. Part of the testator's property which he cannot be disposed of because the law has
reserved it for certain heirs who are called compulsory heirs. Legitime
27. A will which is entirely written, dated and signed by the testator. Holographic

MIDTERMS
1. Which of the following transfers is included in the gross estate? Transfer under general
power of appointment
2. Raph Ronald – The gross estate of Ralph Ronald assuming there is no reciprocity is
3,432,000
3. Ralph Ronald – The gross estate of Ralph Ronald assuming there is reciprocity is
2,100,000
4. Statement 1: Mr. A devised in his Will a piece of land, naked title to Mr. B and usufruct to
Mr. C for as long as Mr. C lives, thereafter to Mr. B. The transmission from A to B and C
is subject to estate tax but the merger of the usufruct and the naked title to B upon the
death of C is exempt. True
Statement 2: Mr. X devised in his will real property to his brother, Mr. Y, who is entrusted
with the obligation to preserve and transmit the property to Mr.Z, a son of Y, when Z
becomes of age. The transmission from Y to his son Z is subject to tax. False
5. The following are transactions and acquisitions exempt from transfer tax, except All
bequests, devisees, legacies or transfers to social welfare, cultural and charitable
institutions
6. Which of the following is not part of the gross estate? Exclusive property of the
surviving spouse
7. Y, a Filipino resident, died on November 5, 2007 and his estate incurred losses due to:
1st loss: From fire on February 2, 2007 of improvements on his property; not
compensated by insurance. Not deductible
2nd loss: From flood on February 25, 2008 of household furniture; also not compensated
by insurance. Deductible
 8. Ofelia – The gross estate if the decedent is a resident citizen is- 7,425,000
9. Ofelia – The gross estate if the decedent is a resident citizen is- 7,425,000
10. Ofelia – The gross estate if the decedent is a nonresident alien (with reciprocity) is-
3,700,000
11. Ofelia – The gross estate if the decedent is a non resident alien (no reciprocity)is-
4,050,000
12. Alladin Bujok – How much is the total conjugal properties? 6,008,000
13. Alladin Bujok – How much is the total of the exclusive properties of Alladin? 7,108,000
14. Alladin Bujok – How much is the gross estate of Alladin? 7,258,000
15. Miss Fa Lang – Taxable net estate in the Philippines is 5,280,000
16. The decedent has the following data… The amount includible on the gross estate-
500,000
17. Bongbong – The amount deductible in the gross estate of Bongbong is- None
18. Boning – The total amount of deduction from gross estate is- 1,560,000
19. Dina Mathay – The gross estate of Dina Mathay is- 7,430,000

PREFINALS
1. Which of the following is subject to VAT? Any person who transfers real property
classified as capital asset for insufficient consideration
2. Who is the one statutorily liable for the payment of VAT on sale of goods or properties,
and services? Seller
3. Which of the following statements is incorrent in connection with the term “in the course
of trade or business”? It is limited to the regular conduct or pursuit of a commercial
or economic activity
4. First statement: In the case of sale of real property on the deferred payment basis, not
on installment plan (initial payments exceed 25% of the gross selling price), the
transaction shall be treated as cash sale which makes the entire selling price taxable in
the month of sale. True
Second statement: Transmission of property to a trustee shall not be subject to VAT if
the property is to be merely held in trust for the trustor and/or beneficiary. False
5. Which of the following statements is INCORRECT? The input tax on purchase of
goods, properties or services, related to zero-rated sales, shall be available as tax
credit only in accordance with the Regulations
6. First statement: Dealers In securities and lending Investors shall be sublect to VAT on
the basls of thelr gross receipts. True
Second statement; For dealers in securities, the term "gross recelpts means gross
selling prlce less cost of the securities sold. True
7. Which of the following shall not be Included In the term "gross receipts"? Value-added
tax
8. "Constructive receipt" occurs when the money consideration or its equivalent is placed at
the control of the person who rendered the service without restrictions by the payor.
Which of the following shall not be considered as constructive receipt? Collection of
receivables earned in previous period actual receipt
9. (Phil. CPA) Charlie is an operator of parking lots. What business tax is due on his
income from the business? Value-added tax
10. It means the value-added tax on sale or lease of taxable goods or purchases or services
by any registered or required to register. Output tax
11. The following VAT exclusive data are made available by a VAT registered taxpayer
during the first month of the first quarter of the current year. 180,000
12. Pastry Shop – How much is the value-added tax on the sales for the month of April of
the current year? 23,571
13. Which of the following shall not be “deemed sale” pursuant to the Tax Cose?
Consignment of goods if actual sale is made 60 days following the date such
goods were consigned
14. Which of the following circumstances shall give rise to transactions “demmed sale” for
purposes of VAT?
I – Change of ownership of the business
II – Dissolution of a partnership and creation of a new partnership which takes
over the business
Both I and II
15. First statement: Sale or exchange of services, as well as the use or lease of properties,
shall be subject to VAT, equivalent to 12% of the gross receipts (excluding VAT). True
Second statement: The term “sale or exchange of services” means the performance of
all kind of services in the Philippines for a fee, remuneration, or consideration, whether in
kind or in cash. True
16. Which of the following advance payments by the lessee may be subject to VAT? A loan
to the lessor from the lessee
17. Which of the following goods when sold or imported shall not be exempt from VAT?
Processed or manufactured agricultural and marine food products
18. Which of the following shall not be considered as poultry for VAT exempt transaction
purposes? Fighting cocks
19. Which of the following shall not be considered as agricultural products in their original
state? Bagasse
20. Importation of professional instruments and implements, wearing apparel, domestic
animals, and personal household effects shall be exempt if:
I – belonging to persons to settle in the Philippines for their own use and not for sale,
barter, or exchange Correct
II – Accompanying such persons, or arriving within 90 days before or after their arrival
upon the production of evidence satisfactory to the Commissioner of Internal Revenue,
that such persons are actually coming to settle in the Philippines and that change of
residence is bona fide. Correct
21. First statement: Services are subject to (other) percentage taxes shall not be subject to
VAT. True
Second statement: Services by agricultural contract growers and milling for others of
palay into rice, corn into grits, and sugar cane into raw sugar are exempt from VAT. True
22. This refers to those persons producing for others poultry, livestock or other agricultural
and marine food products in their orignal state. Agricultural contract growers
23. First statement: Medical, dental, hospital, and veterinary services, including laboratory
services, except those rendered by professionals are exempt from VAT. True
Second statement: If the hospital or clinic operates a pharmacy or drug store, the sale of
drugs and medicines is subject to VAT. True
24. Educational services are exempt from VAT if rendered by:
I – private educational instructions duly accredited by DepEd, CHED, and TESDA;
Correct
II – government educational institutions Correct
25. The exemption from VAT of educational services does not include: all of the choices
26. Which of the following shall not be exempt from Value-Added Tax? Services rendered
by professionals such as CPA’s, engineers, lawyers, Etc.
27. Which of the following shall be exempt from VAT?
I – Sale, importation or lease of passenger or cargo vessels and aircrafts, including
engine, equipment and spare parts thereof for domestic and international transport
operations; Exempt
II – Importation of fuel, goods, and supplues by persons engaged in international
transpoer operations Ecempt
28. The account title to best reflect the value-added tax on a purchase: Input tax
29. The X Cooperative is requesting the Bureau of INternal Revenue to exempt it…. True,
true
30. Prices/costs of a VAT taxpayer with purchases from VAT suppliers, VAT not included
54,000
31. Taxpayer is a VAT taxpayer… Sales, VAT not included 800,000… 66,000
32. Country Appliances Marketing Co. – total VAT due and payable 31,300
33. Which statement is correct? The value-added tax on goods or properties sold may be
due even if the goods or properties were not actually sold
34. Which of the following statements is wrong? The value-added tax is: On purchases, is a
part of the cost of inventory
35. Statement 1: In the books of accounts of a VAT-registered taxpayer, purchases are
recorded net of input taxes. True
Statement 2: In the books of accounts of a VAT-registered taxpayer, sales are recorded
net of output taxes. False
36. Statement 1. Sales of certain goods and services to senior citizens are exempt from the
value-added tax, hence the value-added tax on the certain transaction is P0. True
Statement 2.