Prelim Exam - Taxation

____may take effect at the

time of death of the donor or during the lifetime of both

the donor and the donce.

Which theory in taxation states that without taxes, a government

would be paralyzed for lack of power to activate and operate it,

resulting in its destruction?

• Power to destroy theory

• Sumptuary theory

• Lifeblood theory

• Symbiotic doctrine

This amount shall be allowed as an additional deduction without need of substantiation.

An example of a tax where the concept of progressivity finds

application is the

• Amusement tax on boxing exhibitions.

• Income tax on individuals.

• Excise tax on petroleum products.

• Value-added tax on certain articles.

___refers to expenses of testamentary or intestate proceeding for the beneficiary of the estate, incurred in the inventory of taking assets comprising the gross estate.

Which of the following statements relative to donor’s tax is

false?

• The spouses shall file separate donor’s tax returns where

  the thing donated is common property.

• Each parent shall be entitled to the P10,000 exemption on account of marriage of a child.

• Exemptions and deductions cannot be claimed where the 30%

  tax rate on stranger is applicable.

• None of the foregoing.

___The tax code excludes "Intangible" personal property with sirus in the Philippines from the gross estate of a non-resident alien.

Which of the following is not a part of the gross estate?

• Conjugal property

• Community property

• Exclusive property of the decedent

• Exclusive property of the surviving spouse

___refers to the right to designate the person or persons who will succeed to the property of the prior decedent, and it may be general or specific.

When the payment of estate tax will cause undue hardship upon the

heirs or the estate which is undergoing judicial settlement before

the court, the BIR Commissioner may grant an extension for a

period not exceeding:

• 1 year

• 2 years

• 3 years

• 4 years

• 5 years