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INSTRUCTIONS: Select the correct answer for each of the following questions. Mark only one answer
for each item by Shading the corresponding letter of your choice on the answer sheet provided.
STRICTLY NO ERASURES ALLOWED. Use Pencil No. 2 only.
1. The power to tax is not without limitations. Such limitations maybe inherent (restrict the power not
embodied in the constitution) or constitutional (expressly found in the Constitution or implied in its
provisions). Which of the following is an inherent limitation?
A. Equal protection of the laws.
B. No imprisonment for non – payment of poll tax.
C. Exemption from taxation of government entities.
D. Exemption of religious, charitable and educational entities, non – profit cemeteries and
churches from property taxation.
2. Which of the following is not a condition imposed by the Constitution in the exercise of the power
of eminent domain?
A. The payment of just compensation.
B. The observance of due process in taking private property.
C. The existence of public use for taking private property.
D. The consent of the private property owner to sell the property to the government.
4. Account receivable by the estate of the decreased, his executor or administrator as insurance
under a policy taken by the decedent covering his own life is:
A. Excluded from gross estate.
B. Part of gross estate if the beneficiary is revocable.
C. Part of gross estate if the beneficiary is irrevocable.
D. Part of gross estate whether the beneficiary is revocable or irrevocable.
5. The following, except one, are the basic principles of a sound taxation system. The exception is:
A. It is generally payable in money.
B. It should consider the taxpayer’s ability to pay.
C. It should be capable of being effectively enforced.
D. The sources of revenue must be sufficient to meet government expenditures and other public
needs.
CRC-ACE/TAXATION: FIRST PRE-BOARD EXAMS(May 2019 batch) Page 2
6. Statement I. Government owned and controlled corporations are subject to tax unless expressly
exempted.
Statement II. Government agencies performing governmental and proprietary functions are
exempt from tax unless expressly taxed.
A. True, True
B. False, False
C. True, False
D. False, True
7. It is an aspect of taxation that is administrative in character and the power to exercise it is vested
to the department of finance.
A. Levying
B. Collection
C. Imposition
D. Legislation
10. Congress passed a sin tax law that increased the excise tax rates on cigarettes by 1,000%. The
law was thought to be sufficient to force many cigarettes manufacturers out of business. One
cigarette manufacturer that would go out of business questioned in court the new sin tax law
because it would not be able to pay the increased tax. The cigarette manufacturer is:
A. Wrong because taxes are the lifeblood of the government.
B. Correct because Congress, in this case exceeded its power to tax.
C. Correct because no government can deprive a person of its livelihood.
D. Wrong because the law recognizes the fact that the power to tax carries with it the power to
destroy.
11. The Municipality of Itogon passed an ordinance imposing a tax on installation managers. At that
time, there was only one installation manager in the municipality, thus, only he would be liable for
the tax. Is the law constitutional?
A. It is unconstitutional for lack of legal basis
B. It is constitutional as it applies to all persons in that class.
C. It is constitutional because the power to tax is the power to destroy.
D. It is unconstitutional because it clearly discriminates against this person.
12. Yamaha Corporation manufactures motorcycles and is almost at the point of bankruptcy. It has no
more cash and all it has are unsold motorcycles. It received an assessment from the BIR for
deficiency income taxes. It wants to pay but due to lack of cash it seeks permission to pay in kind
with motorcycles. Should the BIR grant the requested permission?
A. It should grant permission to make payment convenient to taxpayers.
B. It should not grant permission because a tax is generally a pecuniary burden.
C. It should grant permission else Yamaha Corporation would not be able to pay.
SET A
CRC-ACE/TAXATION: FIRST PRE-BOARD EXAMS(May 2019 batch) Page 3
D. It should not grant permission because the government does not have the storage facilities for
motorcycles.
13. Panelco is a power generation and distribution company operating mainly in Agno, Pangasinan. It
owns electric poles which it also rents out to other companies that use poles such as telephone
and cable companies. The municipality of Agno passed an ordinance imposing a fee equivalent to
1% of the annual rental for these poles. Panelco questioned the legality of the ordinance on the
ground that it imposes an income tax which local government units are prohibited from imposing.
Rule in the validity of the ordinance:
A. The ordinance is valid as an LGU may impose tax on income.
B. The ordinance is void as the 1% of annual rental fee is excessive and oppressive.
C. The ordinance is valid as it is a legitimate exercise of police power to regulate electric poles.
D. The ordinance is void as the fee is based on rental income and is therefore a tax on income.
17. The government is said to be exempt from taxation. Which of the following is an exception to this
rule?
A. A government employee buying 30 printers for office use.
B. DSWD claiming tax exemption or goods donated by the LGUs of Laoag City.
C. A contractor for the government claiming exemption from contractor’s tax.
D. A contract entered into by the PNP and SM where SM furnishes the PNP with police
uniforms.
18. Which of the following is not within the scope of tax legislation?
A. Assessment of tax
B. Fixing the possible tax rate.
C. Determining the purpose of the tax.
D. Determining the subjects to be taxed.
19. Which of the following is not an inherent limitation in the exercise of the power of Taxation?
A. Territoriality
B. International comity
SET A
CRC-ACE/TAXATION: FIRST PRE-BOARD EXAMS(May 2019 batch) Page 4
20. Which of the following is not an exclusion from the gross estate?
A. Transfer to government.
B. Proceeds of life insurance
C. Transfer passing under a limited power of appointment
D. Foreign corporation shares of stock where 80% of its operation is in the Philippines owned by
a non- resident alien decedent.
21. A non- stock, non- profit entity shuts down and transfers all its property in favor of another entity
will not be subject to tax if it meets the requirements of the law, except:
A. The transferee is a non – government organization.
B. The transferee is another non –stock, non – profit organization.
C. Not more than 30% of the donation is used for administrative purpose.
D. The transferee is an educational, charitable, religious, cultural, social welfare, or philanthropic
organization.
23. Which of the following may be deducted from the gross estate?
A. Medical expenses C. Funeral expenses
B. Standard deduction D. Judicial expenses
24. If a Briton was a resident of the Philippines, is the property located outside the Philippines be
included in his gross estate?
A. No, only property located in the Philippines will be included because he was a Briton.
B. Yes, regardless of the location of the property will be included in the gross estate because he
was a resident.
C. No, he must be both a resident and Filipino citizen to include property outside the Philippines
in his gross estate.
D. Yes, regardless of location of the property will be included in the gross estate because he was
a British citizen.
25. An American living in New York died intestate leaving the following properties:
Dodge caliber in New York P 3,000,000
Tiny House in New York 5,000,000
Fixtures in the Tiny House 1,000,000
Proceeds of life insurance with Philam (philamerican) life 2,000,000
Which of the above-listed properties will be included in the decedent’s gross estate?
A. None.
B. All his properties.
C. Only the life insurance proceeds.
D. Only properties outside the Philippines.
26. How much is the donor’s tax for the month of January?
A. Exempt B. P 1,800 C. P 6,000 D. P 7,800
SET A
CRC-ACE/TAXATION: FIRST PRE-BOARD EXAMS(May 2019 batch) Page 5
27. How much is the donor’s tax for the month of February?
A. P 9,000 B. P 7,800 C. P 6,000 D. P 1,800
28. How much is the donor’s tax for the month of March?
A. P 6,000 B. P 7,800 C. P 9,000 D. P 14,000
Feb: To a legitimate daughter who got married on valentine’s day amounting to P 350,000.
July: To legitimate son’s birthday celebration amounting to P450,000.
To the National Government cash of P100,000.
29. How much is the donor’s tax due for the month of February?
A. P 5,400 B. P 6,000 C. P 20,400 D. P 21,000
30. How much is the donor’s tax due for the month of July?
A. P 18,000 B. P 26,400 C. P 27,000 D. P 33,000
31. Compute the donor’s tax due for the month of July if the gift given to the son was split into two: P
225,000 in July and P 225,000 in August 2019?
A. P 12,900 B. P 13,500 C. P 19,000 D. P 19,500
32. The donor’s tax due for the month of August 2019 is:
A. P 19,500 B. P 13,500 C. P 12,900 D. Exempt
33. The Bureau of Internal Revenue may grant an extension of time for filling the Estate Tax Return
settled judicially within?
A. I month B. I year C. 2 years D. 5 years
34. A non- stock non- profit entity shuts down and transfers all its property in favor of another entity. It
will not be subject to tax if it meets the requirements of the law, except?
A. The transferee is non – government organization.
B. The transferee is another non –stock, non – profit or organization.
C. Not more than 30% of the donation is used for administrative purpose.
D. The transferee is an educational, charitable, religious cultural or social welfare, or
philantrophic organization.
35. What is the gross estate and the allowable deductions therefrom?
A. P 5,500,000; P 3,500,000
B. 10,000,000; 6,110,000
C. 10,990,000; 6,200,000
D. 11,000,000; 6,800,000
SET A
CRC-ACE/TAXATION: FIRST PRE-BOARD EXAMS(May 2019 batch) Page 6
36. What is the taxable net estate and the estate tax due?
A. P 2,000,000; P 120,000
B. 3,890,000; 233,400
C. 4,200,000; 252,000
D. 4,790,000; 272,400
37. If the decedent was a non – resident alien, what would be the gross estate for Philippines estate
tax purposes and the allowable deductions therefrom if there was no reciprocity?
A. P 5,500,000; P 1,000,000
B. 5,490,000; 1,400,000
C. 5,200,000; 1,200,000
D. 5,500,000; 500,000
38. In No. 37 what is the taxable net estate and the estate tax due?
A. P 5,000,000; P 300,000
B. 4,000,000; 240,000
C. 4,090,000; 225,400
D. 4,500,000; 270,000
39. What if Don Pepe before dying, asked your advice on how to transfer his properties to his heir with
the least tax consequences? What advice would you give?
A. Sell all properties to his heir.
B. Donate all properties to his heir.
C. Get a life insurance policy. When he dies the proceeds from such policy shall cover the estate
tax.
D. Create 2 corporations: Corporation X holding the assets of Don Pepe and Corporation Y in
which the heir is a majority shareholder. Have the 2 corporations merged or consolidated
where the heir exchanges his shares in Corporation Y for the shares in Corporation X, as set
forth in Sec. 40 (a) (2) of the Tax Code, as amended.
40. To mitigate the harmful effect of successive taxation of the same property occasioned by the death
occurring within a short period of time, the law allows as deduction:
A. Vanishing deduction. C. Share of surviving spouse.
B. Claims against the estate. D. Claims against insolvent person.
41. Which of the following is not a condition for the allowance of family home deduction in estate
taxation?
A. The total value of the family home must be included as part of the gross estate of the
decedent.
B. The family home must be the actual residential house of the decedent and his family at the
time of his death, as certified by the Barangay Chairman of the locality where the family home
is situated.
C. Allowable deduction must be an amount equivalent to the current fair market value of the
family home as declared or included in the gross estate or to the extent of the decedent’s
interest (whether conjugal/community or exclusive property), whichever is higher, but not
exceeding P10,000,000.
D. None of the choices.
42. Benru, revocably transferred his Montero car to his nephew. He challenged his nephew to pass
the CPA Licensure Examination because if he does, he will waive his power to revoke the transfer.
The nephew topped the CPA Licensure Examination, so Benru; waved his power to revoke the
transfer. The transfer is subject to:
A. Estate tax
B. Donor’s tax
C. Either estate tax or donor’s tax
D. Neither donor’s tax or estate tax
SET A
CRC-ACE/TAXATION: FIRST PRE-BOARD EXAMS(May 2019 batch) Page 7
44. Your bachelor client, a Filipino residing in Baguio City, wants to give his girlfriend a gift of
P500,000 in 2018. He seeks your advice for purposes of reducing, if not eliminating, the donor’s
tax on the gift. What advice will you give?
A. Advise his girlfriend to go abroad with him and give the gift while they are outside the country.
B. Give the full gift of P500,000 in 2018 and tell his girlfriend not to tell anyone that she receives
a gift because the BIR will not know that the gift is made to her.
C. Split the gifts into two: the first P250,000 gift to be given on December 25, 2018 and other
P250,000 to be given on January 1, 2019. Both gifts will be exempted from donor’s tax.
D. None of the choices
45. X and Y were to marry in three (3) months time. Meanwhile to express his affection, X donated a
house and lot to Y. Y, wrote back, accepting the donation and took possession of the property.
Before the wedding, however, Y suddenly died of heart attack. Can Y’s heirs get the property?
A. No, since the marriage did not take place.
B. No, since the donation and acceptance were not in public instrument.
C. Yes, since X freely donated the property to Y who became its owner.
D. Yes, since all the requisites of a donation of an immovable property are present.
46.
FMV, date of Consideration
Revocable transfer Death Transfer received
Land P 5,200,000 P 4,000,000 P 3,000,000
Automobile 0 1,000,000 1,500,000
Shares of Stock 200,000 500,000 400,000
Bond certificates 400,000 300,000 350,000
Transfers under power of
appointment:
Farm land, limited power 1,300,000 1,500,000 0
Land and building, general
power 1,800,000 2,000,000 1,000,000
47. The records pertinent to same properties of a resident citizen, who died on February 14, 2018,
reveal the following information:
Fair market value FMV
Date Acquired Date acquired 2/14/18
Land (inherited) 2/1/2017 P 500,000 P 700,000
Car (donated) 12/25/2014 300,000 200,000
Jewelry (inherited) 1/1/2013 100,000 150,000
The car donated to the decedent was mortgaged by the donor for P60,000 which was paid by
decedent before he died. The gross estate of the decedent amounted to P10 million while total of
deductible losses, indebtedness, taxes, and donation to the Government for public purpose
amounted to P2 million.
The vanishing deduction is:
A. P 360,000 B. P 364,800 C. P 380,800 D. P 524,800
SET A
CRC-ACE/TAXATION: FIRST PRE-BOARD EXAMS(May 2019 batch) Page 8
48. The following transactions are considered “in the course of trade or business” and, therefore,
subject to business taxes, except:
A. Isolated services in the Philippines by non- resident foreign persons.
B. Isolated sale of goods or services for a gross selling price or receipts of P300,000.
C. Regular conduct or pursuit of a commercial or an economic activity by a stock private
organization.
D. Regular conduct or pursuit of a commercial or an economic activity by a non – stock, non –
profit private organization.
49. Which of the following shall be subject to the 3% percentage tax on VAT – exempt person under
Section 109 (BB) of the Tax Code, as amended?
A. Sale of mango; gross annual sales do not exceed P3,000,000.
B. Milling of palay into rice; gross annual receipts exceed P3,000,000.
C. Sale of office supplies; seller not VAT – registered; gross annual sales do not exceed
P3,000,000.
D. Sale of processed agricultural product; not VAT – registered; gross annual sales exceed
P3,000,000.
SET A
CRC-ACE/TAXATION: FIRST PRE-BOARD EXAMS(May 2019 batch) Page 9
57. The input taxes on zero – rated sales of goods may at the option of the VAT – registered person
be, except:
A. Credited.
B. Carried over to the next taxable quarter.
C. Refunded or converted into tax credit certificate.
D. Used as payment for other internal revenue tax, including withholding taxes.
58. When may a VAT registered person claim input taxes as allowable expense deductions from his
income tax return?
A. Input taxes from export sales.
B. Input taxes from exempt sales
C. Input taxes from capital goods
D. Input taxes from zero – rated sales.
Nos. 59 to 63 are based on the following data taken from a VAT – registered entity, inclusive of
VAT.
Sales to Government P 112,000
Regular sales 350,000
Zero – rated sales 250,000
Exempt sales 87,500
Purchases 532,000
61. How much of the actual input VAT can actually be claimed as input tax credit against the output
VAT?
A. P 50,350 B. P 49,750 C. P 57,000 D. P 63,840
64. Which of the following transactions is exempt from the value-added tax?
A. Services rendered by artists, actors and athletes.
B. Generation, transmission and distribution of electricity.
C. Services rendered by professionals, such as CPAs, Physicians and Lawyers.
D. Services rendered by international shipping or air passenger transport operations.
SET A
CRC-ACE/TAXATION: FIRST PRE-BOARD EXAMS(May 2019 batch) Page 10
65. How much can the local government of Baguio City withhold as VAT from its payment to the VAT
– registered construction materials supplier?
A. None B. P 20,000 C. P 28,000 D. P 48,000
66. What if the buyer of the construction materials is non – government entity. How much will be the
VAT payable for the month?
A. None B. P 32,400 C. P 36,000 D. P 38,400
70. If the seller is non – VAT enterprise, how much is the discount of the Senior Citizen?
A. P 100 B. P 112 C. P 160 D. P 180
/cde
SET A
CRC-ACE/TAXATION: FIRST PRE-BOARD EXAMS(May 2019 batch) Page 11
TAXATION
INSTRUCTIONS. Select the correct answer for each of the following questions. Mark only one answer
for each item by the corresponding of your choice on the answer sheet provided. STRICTLY NO
ERASURES ALLOWED. Use Pencil No. 2 only
1. In one view, the power to tax involves the power to destroy while in another view, the power to
tax does not involve the power to destroy. Which among the following statements does not
reconcile the two seemingly inconsistent views?
A. The power to tax could not be the subject of compensation and set-off.
B. The first view refers to a valid üx while the second view refers to an invalid tax.
C. An illegal tax could be judicially declared invalid and should not work to prejudice a taxpayer's
property.
D. The imposition of a valid tax could not be judicially retrained merely because it would prejudice
taxpayer's property.
Ans: A
2. Statement 1. Jurisdiction js the reason why the government could impose estate tax on the
property of resident alien decedents located outside the Philippines.
Statement 2. Symbiotic relationship between the taxpayers and the State is the reason why the
former must provide support to the latter so that it could continue to give protection.
A. Both statements are true,
B. Both statements are false.
C. Only statement 1 is true but not statement 2,
D. Only statement 2 is true but not statement 1.
Ans: A
3. A tax does not meet the public purpose inherent limitation if it:
A. Is for the benefit principally of limited subjects or objects.
B. Affects the areas as a community rather than as were individuals.
C. Is for the welfare of the nation or greater portion of the population.
D. Is designed to support the services of government for some of its recognized objects.
Ans: A
Nos. 4 to 6 are based on the following information: KaLansay, Filipino citizen, died on February 14,
2016, leaving the following:
Exclusive properties P2,000,000
SET A
CRC-ACE/TAXATION: FIRST PRE-BOARD EXAMS(May 2019 batch) Page 12
SET A
CRC-ACE/TAXATION: FIRST PRE-BOARD EXAMS(May 2019 batch) Page 13
14. Palito, a citizen of the Phi!ippines and resident of Baguio City died intestate on Ju!y 4, 2017.
Among his gross estate is a property inherited from his deceased father who died June 10, 2014.
What percentage of deduction will be used in computing the amount of vanishing deduction?
A, 21% B. 40% C. 60% D. 80%
Ans: B
SET A
CRC-ACE/TAXATION: FIRST PRE-BOARD EXAMS(May 2019 batch) Page 14
SET A
CRC-ACE/TAXATION: FIRST PRE-BOARD EXAMS(May 2019 batch) Page 15
C. Must have designated a third person other than the estate, the decedent's executor or administrator
as revocable beneficiary.
D. Must have designated a third person other than the estate, the decedent's executor or administrator
as irrevocable beneficiary.
Ans: D
23. SK Litton, Filipino, has one year more to reach the optional retirement age of 60 years old as an
employee of a private firm. Unfortunately, he met a fatal vehicular accident that caused his
instantaneous death. He was survived by his wife and received P500,000 from SK's employer as
benefit under RIA, 4917, The amount that must be included as part of SK Litton's gross estate is:
A. None B. P 200,000 C. P250,000 D. P500,000
Ans: D
24. Continuing No. 23, the amount that must be claimed as a special deduction from SK Litton's gross
estate for the benefit received by the wife under R.A. 4917 is:
A. None B. P200,000 C. P250,000 D. P500,000
Ans: C
25. Going back to No. 23 and assuming this time that SK Litton was single when he died, the amount
that must be claimed as a special deduction from the gross estate for the benefit received under
RSA, 4917 is:
A. None B. P200,000 C. P 250,000 D. P500,000
Ans: D
26. Referring again to No. 23, the taxable net estte arising from the retirement benefit received under
R.A. 4917 irregardless of whether or not SK Litton died as married or single is:
A. None B. P200,000 C.P250,000 D. P500,000
Ans: A
27. Statement 1: When there is reciprocity; the transfer of intangible personal property located in the
Philippines of a resident alien donor is subject to tax.
Statement 2. Where a personal property classified as capital asset is transferred for less than
adequate and full consideration in money or money's worth, the fair market value of the property
less the consideration received is deemed a gift subject to donor's tax.
A. Both statements are right.
B. Both statements are wrong.
C. Statement 1 is right but statement 2 is wrong.
D. Statement 2 is right but statement 1 is wrong.
Ans: A
28. Mayaman wanted the painting hanging on the wall of his living room replaced with a new one. He
the sells it to his bosom friend, Salamat, at a very low price of P500,000. Its fair market value is
P750,000. He bought the painting several years ago at an exhibit held in Shangri-La for P300,000.
The gain on sale of the painting is
A. P200,000 B. P 300,000 C. P450,000 D. P500,000
SET A
CRC-ACE/TAXATION: FIRST PRE-BOARD EXAMS(May 2019 batch) Page 16
29. Continuing No. 28, how much, if any, is the deemed gift?
A. None B. P250,000 C. P300,000 D. P450,00
Ans: B
30. In the preceding number, the rate/s of donor's tax, if appiicabie, is:
A. 30% of the net gift.
B. Not subject to donors tax.
C. 5% on the first P100,000 of the taxable net gift and 10% on any amount of taxable net gift in
excess of P100,000.
D. The progressive rates under Sec. 99 (A) of the NIRC of 1997 based on aggregate net gifts made
during a calendar year.
Ans: A
SET A
CRC-ACE/TAXATION: FIRST PRE-BOARD EXAMS(May 2019 batch) Page 17
SET A
CRC-ACE/TAXATION: FIRST PRE-BOARD EXAMS(May 2019 batch) Page 18
SET A
CRC-ACE/TAXATION: FIRST PRE-BOARD EXAMS(May 2019 batch) Page 19
D. The taxpayer is not required to register for VAT because his annual gross sales and/or receipts has
no bearing in the optional or compulsory registration as VAT taxpayer.
Ans: B
43. As regards a revenue measure, which of the following statements is wrong?
A. The President may recommend a revenue bill to Congress.
B. The House of Representatives may propose amendments if the bill originates from the Senate.
C. The Senate may propose amendments if the bill originates from the House of Representatives.
D. A House of Representatives version and a Senate version approved separately and then
consolidated in the Bicameral Committee with both houses approving the consolidated version.
Ans: B
44. NatyGok, a spinster Filipino citizen and an avowed devotee of Mama Mary, is a living cancer
patient (stage four) and given only a month to live by her doctor. Her only asset is composed of
cash amounting to P5/000,000. Prior to her death, she asks you whether she would transfer her
property by way of donation inter vivos (donor's tax) or donation mortis causa (estate tax) to a
well-to-do cousin who pledged paying for the funeral expenses when her last moment comes.
You presented to her that the aggregate donor's tax due is P204,000 plus 10% of excess over and
the aggregate estate tax due is P135,000 plus 11% of excess over P2,000,000.
Naturally, NatyGok preferred paying the tax by means of donation inter vivos (rather than thru
donation mortis causa) because of the lesser transfer tax to be paid. Is she correct?
A. Yes, because NatyGok is still alive.
B. No, because the estate tax is cheaper by P49,000.
C. No, because whether donor's tax or estate tax is to be paid, the transfer tax amount would be the
same,
D. Yes, because there will be tax savings of P61,000.
Ans: B
45. Supposing that in the preceding number, the wealthy would be successor of NatyGok's property is
a second cousin, yet she still prefers paying donor's tax over that of estate tax. Is she correct?
A. Yes, because she is still alive.
B. NO, because the amount of transfer tax to be paid would-be the same under either donor's
taxation or estate taxation.
C. No, because the donor's tax will be expensive by over a million pesos.
D. Yes, because her wealthy successor is still a non-stranger cousin.
Ans: C
Nos. 46 to 48 are based on the following information: A widowed non-resident alien donor made the
following donations, all on the same day:
Donee Property FMV
To a daughter on her House and lot in the Philippines P2,000,000
SET A
CRC-ACE/TAXATION: FIRST PRE-BOARD EXAMS(May 2019 batch) Page 20
wedding day.
To Development Academy Time deposit in BDO 500,000
of the Philippines. Unibank.
To a son on his birthday. Saving account in PNB
Unibank 300,000
There is an unpaid mortgage of P500,000 on the house and lot which the daughter assumed. Also, the
donor wants 25% of the gift to the son be donated to a Roman Catholic Church of his choice in the
Philippines,
46. The total gross gifts is:
A. P2,225,000 B. P2,300,000 C. P2,500,000 D. P2,800,000
47. The total exemptions or deductions is:
A. P75,000 B. P225,000 C. P1,075,000 D. P1,085,000
Ans: C
48. The taxable net gift is:
A. P 1,425,000 B. P1,725,000 C. P2,075,000 D.P2,150,000
Ans: B
49. The Commissioner of Internal Revenue may grant an extension of time for the payment of the
estate tax or any part thereof in case the estate is settled extrajudicial for a period not exceeding:
A. Two years from grant of the extension.
B. Five years from grant of the extension.
C. Two years from the settlement of the estate.
D. Five years from the settlement of the estate,
Ans: A
50. Which one of the following is not among the characteristics or nature of value-added Ex (VAT)?
A. It is an indirect tax.
B. It is a percentage tax.
C. It is a tax on property.
D. It is a tax on consumption.
Ans: C
51. The following are the various VAT methods and systems. Which one is a contradiction?
A. Tax credit method,
B. Cost deduction method.
C. Neither tax credit method nor cost deduction method.
D. Mixture of tax credit method and cost deduction method.
Ans: C
52. A business operator has his main office in Manila and two branch offices in Makati. How many
certificate of reaistratjon shall be issued by Bureau of Internal Revenue (BIR)?
A. Two, for the two branches.
B. Two, one for Manila and one for Makati.
SET A
CRC-ACE/TAXATION: FIRST PRE-BOARD EXAMS(May 2019 batch) Page 21
SET A
CRC-ACE/TAXATION: FIRST PRE-BOARD EXAMS(May 2019 batch) Page 22
SET A
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SET A
CRC-ACE/TAXATION: FIRST PRE-BOARD EXAMS(May 2019 batch) Page 24
END OF EXAMINATION
SET A