ACCOUNTANCY DEPARTMENT

TAXATION - ASSESSMENT
1. Hello KT, a non-VAT reg. professional, accumulated sales of P1,819,500
for the fiscal year ending September. Will the company be required to
become VAT registered this year?
a. No. VAT threshold is not reached yet.
b. No. VAT threshold is not breached yet.
c. Yes. VAT is applicable.
d. The company is required to be OPT registered.
2. Kiti-Kiti, makes annual sales of fresh tilapia amounting P1,919,900. He
is contemplating if he is already required to be registered under the
VAT system because he is no longer updated as regards the threshold
for its mandatory registration. As his client, what will you tell Mr. Kiti?
a. No. VAT registration is not yet required.
b. Yes. VAT registration is now mandatory.
c. Yes. However, optional.
d. Kiti has the option with regard being OPT or VAT registered.
3. Donors tax is applicable only in completed gifts. Thus, all the elements
of donation made inter-vivos must always concur to validate a
donation.
a. True. All the elements of valid donation must be present for donors
tax to apply.
b. False. Capacity of the donee may not be required under certain
cases.
c. False. Capacity of the donor may not be required under certain
cases.
d. False. Intent may not be required in certain cases.
4. Mr. Lee died leaving his wife as the only heir. How do we determine the
net estate taxable (NET) of the decedent?
a. Gross estate (Ordinary + Special deductions)
b. Gross estate (Ordinary Special deductions)
c. Net estate (Ordinary + Special deductions)
d. None of the choices
5. For estate tax purposes, the gross estate of the decedent shall be
valued at the time of decedents death. Which is generally composed
of
a. Properties only
b. Properties and rights only
c. Properties and obligations only
d. Properties, rights and obligations
6. A cancer stricken husband, in his death bed, donated to his wife a
substantial sum of money, without of course the benefit of family
rejoicing. The donation to take effect upon his death later through
euthanasia. What is the status of donation made between the husband
and wife?
a. Void for being immoderate.
b. Void for being made not under cases of family rejoicing.
c. Void for being immoderate
Page 1 of 3 and made not under cases of family
rejoicing.
d. Valid.

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7. Mr. Lee donated a real property worth P100,000 to a family relative,

Sara Lee, who happens to be his 2 nd cousin. He comes to you now to
determine the applicable tax consequence of his donation. As his
client, what would you tell Mr. Lee?
a. Being a relative, Mr. Lee is subject to the schedular tax rate.
b. Being a 2nd cousin, Mr. Lee is subject to the 30% fixed rate.
c. Being a stranger, Mr. Lee is subject to the 30% fixed rate.
d. None of the above
8. Mang Inasar donated to his ailing wife a sum of money on account of
her cancer therapy. The amount is considered moderate. What is the
status of the donation made between the husband and wife?
a. The donation is valid because it is moderate and made on occasion
of family distress.
b. The donation is void for being made not under family rejoicing.
c. The donation is valid because it will be classified as donation mortis
causa.
d. The donation is void under void-for-vagueness doctrine.
9. A married B. Days after, B died. Because of so much depression,
months later, A died as well leaving a family home worth P1, 500,000.
For purposes of determining deductions on As gross estate, how much
will the estate of A be able to claim as regards family home?
a. 1,000,000
b. 1,500,000
c. 750,000
d. 375,000
10.A, failed to pay his tax consequences. What is the nature of the tax
liability?
a. Civil
b. Penal
c. Political
d. Nugatory
Super KT, a gorgeous tax division partner in KPMG is planning to distribute
fringe benefits to his group employees. Among his team members are
Marty Pogi, manager; Mr. AC, supervisor; and Pretti Inse, a rank and file
employee.
11.Who among the employees may receive the proposed fringe benefits?
a. Marty Pogi only
b. Mr. AC only
c. Marty Pogi and Mr. AC only
d. Marty Pogi, Mr. AC, and Pretti Inse
12.Who will be liable to pay the corresponding fringe benefit tax thereon?
The employeer
The employees
Either
Neither
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13.May Pretti Inse be held liable to pay for a fringe benefit tax?
a. No, rank and file employees are not liable to pay FBT
b. No, rank and file employees cannot receive fringe benefits
c. Yes, FBT may be paid by the rank and file employee
a.
b.
c.
d.

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d. None of the above

end of assessment

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