5: Filing of Estate Tax Returns, and Payment of Estate Tax

5
FILING OF ESTATE TAX RETURNS
AND PAYMENT OF ESTATE TAX
It is hard to fail, but it is worse never to have tried to succeed.
-Theodore Roosevelt

Multiple Choice: Choose the best possible answer.

1. How much of the net estate is exempt from estate tax?

a. P100,000 and below
c. P500,000 and below
b. P200,000 and below
d. P1,500,000 and below
Answer: B
References: Section 84, NIRC, as amended
Section 2, Revenue Regulations No. 2-2003

2. Under what cases will a written notice of death required to be filed?

I - In all cases of transfers subject to tax
II - In all cases where, though exempt from tax, the gross value of
the gross estate exceeds twenty thousand pesos (P20,000)
a. Both I and II are correct
b. Both I and II are incorrect

c. Only I is correct
d. Only II is correct

Answer: A
Reference: Section 89, NIRC, as amended

3. When should the written notice of death be filed?

a. Within two (2) months after the decedents death.
b. Within two (2) months after the decedents death, or within a
like period after qualifying as such executor or administrator.
c. Within six (6) months after the decedents death.
d. Within two (2) years after qualifying as such executor or
administrator.

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Answer: B
Reference: Section 89, NIRC, as amended

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4. Who of the following shall file the written notice of death?
a. Executor
b. Administrator
c. Legal heirs
d. Any of the above
Answer: D
Reference: Section 89, NIRC, as amended

5. When there is a will, a person appointed in such will to take charge in

carrying out the wishes of the testator is called:
a. administrator.
c. trustee.
b. executor.
d. heir.
Answer: B
References: Comment on Article 881, Civil Code of the
Philippines Annotated, Justice Edgardo L. Paras
Chapter 1, Philippine Transfer and Business Taxes,
Atty. Virgilio D. Reyes

6. If the person appointed by the testator refused to accept the

appointment, or failed to qualify under the law, or the last will and
testament did not appoint anybody, and the court appointed
somebody, the person appointed is called:
a. administrator.
c. trustee.
b. executor.
d. heir.
Answer: A
References: Comment on Article 881, Civil Code of the
Philippines Annotated, Justice Edgardo L. Paras
Chapter 1, Philippine Transfer and Business Taxes,
Atty. Virgilio D. Reyes

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7. Under what case is an estate tax return required to be filed?
a. In all cases of transfers subject to the tax
b. In all cases, where although exempt from tax, the gross value
of the estate exceeds two hundred thousand pesos (P200,000)
c. In all cases regardless of the gross value of the estate, where
the estate consists of registered or registrable property
d. All of the choices
Answer: D
Reference: Section 90 (A), NIRC, as amended
The following are examples of registered or registrable property:
a. real property,
b. motor vehicle,
c. shares of stock or
d. other similar property for which a clearance from Bureau of
Internal Revenue is required as a condition precedent for the
transfer of ownership thereof in the name of transferee
8. What shall be set forth in the estate tax return?
a. The value of the gross estate of the decedent at the time of his
death, or in case of a nonresident who is not a citizen of the
Philippines, of that part of this gross estate situated in the
Philippines
b. The deductions allowed from the gross estate in determining
the net estate
c. Such part of such information as may at the time be
ascertainable and such supplemental data as may be
necessary to establish the correct taxes
d. All of the choices
Answer: D
Reference: Section 90 (A), NIRC, as amended

9. Under what case the estate tax return shall be supported with a
statement duly certified to by a Certified Public Accountant?
a. In case where it shows a gross value of P2,000,000 and below
b. In case where it shows a gross value of P2,000,000 and above
c. In case where it shows a gross value exceeding P2,000,000
d. None of the choices

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Answer: C
Reference: Section 90 (A), NIRC, as amended

10. In case the estate tax return required is to be supported with a

statement duly certified to by a Certified Public Accountant, what
shall the statement contain?
a. Itemized assets of the decedent with their corresponding gross
value at the time of his death, or in the case of nonresident,
who is not a citizen of the Philippines, the value of that part of
his gross estate situated in the Philippines
b. Itemized deductions from gross estate allowed under Section
86
c. The amount of tax due whether paid or still due and
outstanding
d. All of the choices
Answer: D
Reference: Section 90 (A), NIRC, as amended

11. Who of the following shall file the estate tax return?
a. Executor
b. Administrator
c. Legal heirs
d. Any of the above
Answer: D
Reference: Section 90 (A), NIRC, as amended

12. When
a.
b.
c.
d.

is the time for filing of the estate tax return?

Thirty (30) days from the decedents death
Two (2) months from the decedents death
Six (6) months from the decedents death
Two (2) years from the decedents death

Answer: C
Reference: Section 90 (B), NIRC, as amended

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13. When should the Commissioner of Internal Revenue be furnished

with a certified copy of the schedule of partition and the order of the
court approving the same?
a. Within thirty (30) days from the decedents death
b. Within thirty (30) days after the promulgation of the order
c. Within two (2) months from the decedents death
d. Within six (6) months from the decedents death
Answer: B
Reference: Section 90 (B), NIRC, as amended

14. Can the filing of estate tax return be extended by the Commissioner
of Internal Revenue?
a. Yes, the Commissioner shall have authority to grant,
in meritorious cases, a reasonable extension not exceeding
sixty (60) days for filing the return.
b. Yes, the Commissioner shall have authority to grant,
in meritorious cases, a reasonable extension not exceeding
thirty (30) days for filing the return.
c. No, the Commissioner shall no longer be authorized to grant,
even in meritorious cases, a reasonable extension for the filing
the return under the new provisions of the Tax Code.
d. No, the Commissioner cannot extend the filing of the estate
tax return because only the Secretary of Finance can.
Answer: B
Reference: Section 90 (C), NIRC, as amended

15. In case of a resident decedent, the administrator or executor shall

register the estate of the decedent and secure a new TIN therefor
from the:
a. Office of the Commissioner.
b. RDO where the decedent was domiciled at the time of his
death.
c. RDO where the executor or administrator is registered.
d. duly authorized Treasurer of the city or municipality where
the decedent is domiciled at the time of his death.

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Answer: B
Reference: Section 9 (C), Revenue Regulations No. 2-2003

16. In case of a resident decedent, the administrator or executor shall file

the estate tax return and pay the tax with any of the following, where
the decedent was domiciled at the time of his death, except:
a. Office of the Commissioner through RDO No. 39-South
Quezon City.
b. Accredited Agent Bank (AAB).
c. Revenue District Officer and Collection Officer.
d. duly authorized Treasurer of the city or the municipality.
Answer: A
Reference: Section 9 (C), Revenue Regulations No. 2-2003

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17. In case of a non-resident decedent, whether a non-resident citizen or
a non-resident alien, with executor or administrator in the
Philippines, the estate tax return shall be filed with and the TIN for
the estate shall be secured from the:
a. Office of the Commissioner.
b. RDO where the decedent was domiciled at the time of his
death.
c. RDO where the executor or administrator is registered.
d. RDO having jurisdiction over the executor or administrators
legal residence.
Answer: C
Reference: Section 9 (C), Revenue Regulations No. 2-2003

18. In case of a non-resident decedent, whether a non-resident citizen or

a non-resident alien, with executor or administrator in the
Philippines who is not registered, the estate tax return shall be filed
with and the TIN for the estate shall be secured from the:
a. Office of the Commissioner through RDO No. 39- South
Quezon City.
b. RDO where the decedent was domiciled at the time of
his death.
c. RDO where the executor or administrator is registered.
d. RDO having jurisdiction over the executor or administrators
legal residence.
Answer: D
Reference: Section 9 (C), Revenue Regulations No. 2-2003

19. In case of a non-resident decedent, whether a non-resident citizen or

a non-resident alien, who does not have an executor or administrator
in the Philippines, the estate tax return shall be filed with and the
TIN for the estate shall be secured from the:
a. Office of the Commissioner through RDO No. 39- South
Quezon City.
b. RDO where the decedent was domiciled at the time of his
death.
c. RDO where the executor or administrator is registered.
d. RDO having jurisdiction over the executor or administrators
legal residence.

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Answer: A
Reference: Section 9 (C), Revenue Regulations No. 2-2003

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20. When
a.
b.
c.
d.

is the estate tax paid?

Within six (6) months from the decedents death
Within two (2) months from the decedents death
As the return is filed
None of the choices

Answer: C
References: Section 91 (A), NIRC, as amended
Section 9 (D), Revenue Regulation No. 2-2003

21. Can the Commissioner of Internal Revenue extend the time for
payment of the estate tax?
I - Yes, not to exceed five (5) years, in case the estate is settled
through the courts
II - Yes, not to exceed two (2) years, in case the estate is settled
extra-judicially
a.
b.
c.
d.

Only I is correct
Only II is correct
Both I and II are correct
Neither I nor II is correct

Answer: C
References: Section 91 (B), NIRC, as amended
Section 9 (E), Revenue Regulations 2-2003

22. The Commissioner of Internal Revenue may extend the time for
payment of the estate tax:
I - when the Commissioner finds that the payment on the due date
of the estate tax or of any part thereof would impose undue
hardship upon the estate or any of the heirs.
II - where the taxes are assessed by reason of negligence,
intentional disregard of rules and regulations, or fraud on the
part of the taxpayer.
a.
b.
c.
d.

Only I is correct
Only II is correct
Both I and II are correct
Neither I nor II is correct

Answer: A

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References: Section 91 (B), NIRC, as amended
Section 9 (E), Revenue Regulations 2-2003

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23. The application for extension of time to file the estate tax return and
extension of time to pay estate tax shall be filed with the:
a. Office of the Commissioner.
b. Revenue District Office (RDO) where the estate is required to
secure its Taxpayer Identification Number (TIN) and file the
tax returns of the estate.
c. Revenue District Office (RDO) where the executor or
administrator is required to register.
d. duly authorized Treasurer of the city or municipality where
the decedent is domiciled at the time of his death.
Answer: B
References: Section 9 (B), Revenue Regulations No. 2-2003
Section 9 (E), Revenue Regulations No. 2-2003

24. If extension is granted, the Commissioner or his duly authorized

representative may require the executor, administrator or beneficiary
as the case may be, to furnish a bond in such amount:
a. exceeding double the amount of the tax and with such
sureties as the Commissioner deems necessary.
b. not exceeding double the amount of the tax and with such
sureties as the Commissioner deems necessary.
c. not exceeding P2,000,000.
d. none of the choices.
Answer: B
Reference: Section 9 (E), Revenue Regulations No. 2-2003

25. Any amount paid after the statutory due date of the estate tax, but
within the extension period, shall be subject to:
I - interest.
II - surcharge.
a. Both I and II
b. Neither I nor II

c. I only
d. II only

Answer: C
Reference: Section 9 (E), Revenue Regulations No. 2-2003

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26. Can the estate tax be paid in installment?
a. Yes, in case the available cash of the estate is not sufficient to
pay its total estate tax liability, the estate may be allowed to
pay the tax in installment and a clearance shall be released
only to the property where the corresponding/computed tax
has been paid.
b. Yes, the administrator or executor can request paying on
installment basis if the heirs request for such mode of
payment.
c. No, payment of estate tax in installment is not possible
because the collection of tax cannot be delayed under any
circumstance.
d. None of the choices.
Answer: A
Reference: Section 9 (F), Revenue Regulations No. 2-2003

27. In case of installment payment of estate tax:

I - the computation of the estate tax shall always be on the
cumulative amount of the net taxable estate.
II - any amount paid after the statutory due date of the tax shall be
imposed the corresponding applicable penalty thereto.
a.
b.
c.
d.

Only I is correct
Only II is correct
Both I and II are correct
Neither I nor II is correct

Answer: C
Reference: Section 9 (F), Revenue Regulations 2-2003

28. Which of the following statements is incorrect?

a. The estate tax imposed under the Tax Code shall be paid by
the executor or administrator before the delivery of the
distributive share in the inheritance to any heir or beneficiary.
b. Where there are two or more executors or administrators, all
of them are severally liable for the payment of the estate tax.
c. The estate tax clearance issued by the Commissioner or the
Revenue District Officer having jurisdiction over the estate,
will serve as the authority to distribute the remaining or

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distributable properties or shares in the inheritance to the
heir or beneficiary.
d. None of the choices.
Answer: D
Reference: Section 9 (G), Revenue Regulations 2-2003
29. Who has the primary obligation to pay the estate tax?
a. Heir or beneficiary
b. Executor or administrator
c. Surviving spouse
d. None of the choices
Answer: B
References: Section 91 (C), NIRC, as amended
Section 9 (G), Revenue Regulations 2-2003

30. Who has the subsidiary liability for the payment of estate tax?
a. Heir or beneficiary
b. Executor or administrator
c. Surviving spouse
d. None of the choices
Answer: A
References: Section 91 (C), NIRC, as amended
Section 9 (G), Revenue Regulations 2-2003

31. Under the Tax Code, the term executor or administrator means:
I - the executor or administrator of the decedent.
II - if there is no executor or administrator appointed, qualified, and
acting within the Philippines, then any person in actual or
constructive possession of any property of the decedent.
a.
b.
c.
d.

Only I is correct
Only II is correct
Both I and II are correct
Neither I nor II is correct

Answer: C
Reference: Section 91 (C), NIRC, as amended

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