TAX SEMINAR 2nd Batch Quiz

NAME: _________________________

Date: __________________________

This questionnaire contains three (3) pages including this page. It comprises two (2)
parts:

PART I. Five (5) Multiple Choice Question for two (2) points each;
PART II. Five (5) True or False Question for two (2) points each, for a total of twenty
(20) points.
__________________________________________________________________________

PART I. MULTIPLE CHOICE. Encircle the correct answer.

1. The head priest of the religious sect Tres Personas Solo Dios, as the corporation sole,
rented out a 5,000 sq. m. lot registered in its name for use as school site of a school
organized for profit. The sect used the rentals for the support and upkeep of its priests.
The rented lot is:

(A) not exempt from real property taxes because the user is organized for profit.
(B) exempt from real property taxes since it is actually, directly, and exclusively used
for religious purposes.
(C) not exempt from real property taxes since it is the rents, not the land, that is used
for religious purposes.
(D) exempt from real property taxes since it is actually, directly, and exclusively used
for educational purposes.

2. Which of the following is an exclusion from gross income?

(A) Salaries and wages

(B) Cash dividends
(C) Liquidating dividends after dissolution of a corporation
(D) De minimis benefits

3. Don Fortunato, a widower, died on 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.

4. Tong Siok, a Chinese billionaire and a Canadian resident, died and left assets in China
valued at P80 billion and in the Philippines assets valued at P20 billion. For Philippine
estate tax purposes the allowable deductions for expenses, losses, indebtedness, and
taxes, property previously taxed, transfers for public use, and the share of his surviving
spouse in their conjugal partnership amounted to P15 billion. Tong's gross estate for
Philippine estate tax purposes is:

(A) P20 billion.

(B) P5 billion.
(C) P100 billion.
(D) P85 billion.

5. In estate tax amnesty, if there is no executor or administrator, the return shall be

filed with:

(A) RDO 38-South Quezon City

(B) RDO 39-South Quezon City
(C) RDO 40-South Quezon City
(D) RDO 41-South Quezon City

PART II. TRUE OR FALSE. Write TRUE if the statement is correct, otherwise FALSE.

1. A corporation can claim the optional standard deduction equivalent to 40% of its
gross sales or receipts, as the case may be.

2. Lifeblood theory states that the government relies on taxation to obtain the means
to carry on its operations. Taxation is essential to its very existence

3. There is no taxable income until such income is recognized. Taxable income is

recognized when the income has been actually received in money or its equivalent.

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4. Gifts made for the use of barangay are exempted from donor’s tax.

5. Estate tax amnesty can be availed three (3) years from the effectivity of the Revenue
Regulation (RR).