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TAX-FREE EXCHANGES OF PROPERTIES & OTHER RELEVANT TAX UPDATES

Total questions: 10

Worksheet time: 13mins

Name
Class
Date
1.

The following transfers of shares of stock shall also be subject to DST, except one

a)

Transfer pursuant to a Deed of Donation

b)

Transfer pursuant to a Will of the Decedent as approved by the probate court in a judicial settlement of estate

c)

Transfer thru intestate succession (without a will)

d)

Transfer in case of a judicial settlement of estate or an extra-judicial settlement of estate wherein the heir/s specifically waive/s or renounce/s his or her share over the inheritance

2.

A tax levied on the exercise by a person of certain privileges conferred by law for the creation, revision, or termination of specific legal relationships through execution of specific instruments.

a)

Documentary Stamp Tax

b)

Excise Tax

c)

Value Added Tax

d)

Percentage Tax

3.

Beginning July 1, 2020 until June 30, 2023, the income tax rate imposed on hospitals which are nonprofit and proprietary educational institutions is.

a)

10%

b)

1%

c)

25%

d)

20%

4.

Which of the following transactions are not covered by the tax-free exchanges of properties?

a)

reorganization

b)

transfer to a controlled corporation

c)

dissolution

d)

none of the above

5.

It means ownership of stocks in a corporation after the transfer of property possessing at least fifty-one percent (51%) of the total voting power of all classes of stocks entitled to vote.

a)

control

b)

stockholder

c)

associate

d)

preferred

6.

The original basis in the determination of the substituted basis of the properties transferred are as follows, except one.

a)

The cost of the property, if acquired by purchase

b)

The fair market value at the time of death of the decedent, if acquired by inheritance

c)

The basis in the hands of the donor or the last preceding owner by whom the property was not acquired by gift, if the property was acquired by donation

d)

the zonal value

7.

The transfers of properties in exchange for shares of stocks made pursuant to Section 40(C)(2) of the 1997 Tax Code, as amended shall be exempt from the following taxes except one.

a)

Capital Gains Tax

b)

Donors Tax

c)

Value Added Tax

d)

Documentary Stamp Tax on the original issuance of shares in exchange for the properties transferred

8.

Statement 1 - For purposes of the issuance of the CAR for the transferred properties pursuant to the tax-free reorganization/exchange, the documentary requirements shall be submitted to the RDO having jurisdiction over the place where the property is located, in case of a real property.

Statement 2- In case of shares of stocks, submit the documentary requirements to the RDO where the issuing corporation is registered.

a)

Both statements are TRUE.

b)

Both statements are FALSE.

c)

Statement 1 is TRUE while Statement 2 is FALSE.

d)

Statement 1 is FALSE while Statement 2 is TRUE.

9.

Which of the following is NOT a requirement in the submission of BIR Form 2316?

a)

Notarized Certification (Annex F)

b)

Sworn Declaration (Annex C)

c)

Duly filed BIR Form 1604-C (eBIRforms) or 1604-CF (eFPS filers)

d)

Alphalist of Employees

10.

What is the deadline for the submission of BIR Form 2316 of those employees qualified for substituted filing for calendar year 2021?

a)

March 1, 2022

b)

February 28, 2022

c)

March 2, 2022

d)

April 15, 2022