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B. Tax Recoupment Theory

The document contains multiple choice questions about estate and transfer taxes. Question 1 describes the tax recoupment theory, which is that transfer tax is imposed to partially recover future reductions in income tax from property being split among multiple taxpayers. Question 2 describes the benefit received theory, where the government imposes transfer of property by donation or succession, and the transferor must pay tax by exercising these privileges. The family home is an incentive deduction and can be deducted up to P10 million. Accrued taxes before and after death, such as real property tax and income tax, are deductible up to P120,000.

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Lucy Heartfilia
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216 views2 pages

B. Tax Recoupment Theory

The document contains multiple choice questions about estate and transfer taxes. Question 1 describes the tax recoupment theory, which is that transfer tax is imposed to partially recover future reductions in income tax from property being split among multiple taxpayers. Question 2 describes the benefit received theory, where the government imposes transfer of property by donation or succession, and the transferor must pay tax by exercising these privileges. The family home is an incentive deduction and can be deducted up to P10 million. Accrued taxes before and after death, such as real property tax and income tax, are deductible up to P120,000.

Uploaded by

Lucy Heartfilia
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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1.

Transfer tax is imposed to partially recover future reduction in income


tax which will arise from the split of income producing property for few or
several taxpayers. What theory statement does the statement describe?
a. Tax evasion theory
b. Tax recoupment theory
c. Benefit received theory
d. Wealth redistribution theory

2. The government imposes the transfer of property by donation and


succession. By exercising these privileges, the transferor must have to be
taxed. What theory does the statement describe?
a. Tax evasion theory
b. Tax recoupment theory
c. Benefit received theory
d. Wealth redistribution theory

3. Which of the following is an incentive deductions?


a. Family home
b. Standard deductions
c. Vanishing deduction
d. All of these
D

4. Which is not an ordinary deduction?


a. Family home
b. Vanishing deduction
c. Transfer for public use
d. Casualty losses of estate properties
A

7. The allowable deductible amount of family home is


a. 5% of gross estate
b. P2,000,000
c. P5,000,000
d. P10,000,000
D
8-9.The heirs of the decedent compiled the following accrued taxes:

Before death After death

Real property tax P40,000


Income tax 80,000 P110,000
Estimated estate tax 400,000

Compute the deductible taxes


a. P120,000
b. P230,000
c. P510,000
d. P630,000
A

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