nig to oxi, ta et, a vor TAXATION GPA REVIEW SIA/TABAG MAY 2017 TAX.2203-Donor’s Tax i LECTURE NOTES ‘Amount donation than Form Donation iditional Oral Requirement NATURE OF DONOR’S TAX ~ it is a tax on the privilege of the donor to give; it is not a property tax, but is a tax imposed on the transfer of property by way of gift inter vivos (donation), The donor's tax shall not apply unless and until there is a completed gift DONATION ~ js act of liberality whereby a person disposes gratuitously of a thing or right In favor of another, who accepts it (Art. 725, New Civil Code). 1) To supplement the estate tax 2) To prevent the avoidance of income taxes. Without donor's tax, the donor may escape the progressive rates of income taxation through the simple expedient way of splitting his income among numerous donees. ESSENTIALS OF A TAXABLE DONATION (CF- DAD) . 1) Capacity of the donor to transfer property 2) Format Requisites PERSONAL PROPERTY REAL PROPERTY Regardiess of amount of 5,000 orless | More i _P5,000 ‘of Oral or in In in public writing writing, instrument, otherwise otherwise __ i WOED _| VOID. donation None None requires simultaneous delivery 3) Donative intent (not required in indirect gift) 4) Acceptance of the gift by the donee NOTE: Multiply: Rate ke Donor's Tax [PX Less: Tax Credit 2000) Donor’s Tax Due/Payable PAX ‘SECOND AND SUBSEQUENT DONATION WITHIN THE YEAR Gross Gift, Current PXXX Less: Exemptions/Deductions, Current (XXX) Net Gift, Current PXXX_ ‘Add: Prior Net Gift ‘Aggregate Net Gift PAX Multiply: Rate xx Donor’s Tax P00 Tax Paid - Prior Gift (xx) ‘Tax Credit bosses FORK) Donor’s Tax Bue/Payable BOK Note: The computation of the donor's tax ison 2 Cormuatve bass over 8 period of one. calendar im G. GROSS GIFT © Fransfore Subject to donor's tax: 1) brea sit 3} Git tneugh creation of a trust; 5} canonetonef debt 4} Repustation of nherance Run 1. "Specialy and categorically Jon of dentiteg hess ne 2.76 the excusin or disadvantage of other corte Wb oiyen cqeedly 5) Renunciation by the” striving Bopodce of tismer share In the conjugal partnership or ttuolite community ater te ekeoluton ofthe marrage in favor cf the hers of fhe deceased ‘spouse or any other person/s; ~7\ hia in favor 6) Transfer for insufficient consideration EXCEPTION: Real property classified as capital asset / = cgntad aK The transfer of property by gift Is perfected GEE Jews acceptance by the donee. Taxable on xxx) 5) Delivery, whether actual or constructive, of the Px subject matter Nore ‘COMPONENTS OF GROSS GIFT : BP. Tee. dep. The transfer of the property is completed by - BO the delivery, either actually or constructively, Penetration Ee of the donated property to the done. RNR TY yy yy Reciprocity { E. CLASSIFICATION OF DONORS ag wio NRA wh x v x z x 1) Citizen or Resident (RC/NRC/RA) | Reciprocity E 2) Non-resident Alien (NRA) y/ i With reciprecity “141 + Gift from Common Property - the gift is ti Without reciprocity taxable one-half to each donor spouse. . 4 Donation between husband and wife FIRST DONATION OF THE during the marriage Gross Git PXXX Less: Exemptions Uedoctions a GENERAL RULE: The git is not taxable, as itis. Net Git PxXX declared voia by law Page 1 of 8 7 TAX.2203ae a XCEL PROFESSIONAL SERVICES, INC. SS EXCEPTION spouses are valid Moderate gifts between the Husband and wife are considered as separate and distinct taxpayer's for purposes of the donor's tax. 2 conjugal or community property and only the However, if what was donated is husband signed the deed of donation, there is ‘only one donor for donor's tax purposes, without prejudice to the right of the wife to ‘question the validity of the donation without her consent pursuant to the pertinent Provisions of the Civil Code of the Philippines ‘and the Family Code of the Philippines, 4) Encumbrances onthe EXEMPTIONS OR DEDUCTIONS FROM ‘GROSS GIFT 1) Dowry Exemption Requisites: 41) Gift made on account of marriage; 2) Given before its celebration or within 1 year thereafter; 3) Given to legitimate, recognized natural cor adopted children; 4) Amount of exemption is 10,000 per donor per child, 2) Gifts to the Government - gifts made to or for the use of the National Government or any entity created by any of its agencies which is not conducted for profit. 3) Gifts to educational, charitable, religious corporation etc. Requisites: 1) Gifts in favor of the following entities: Educational li, Charitable iil, Religious iv. Cultural Social welfare Accredited organization; vii, Trust or Philanthropic organization; viii. Research institution or organization; non-government 2) Not more than 30% of the said gift shall be used for administration Purposes, Property donated assumed by the donee 5) Diminution of gift provided by the donor — oe), 6) Exemption under Special Laws 1. International Rice Research Institute 2. Ramon Magsaysay Foundation 3. Integrated Bar of the Philippines 4, Development Academy ofthe Philippines: National Museum National Library Archives of the National Institute 8, Museum of Philippine Costumes 9. Intramuros Administration 10. Political contributions Historical NoTe: Ue sete? For purposes of the donor's tax, "NET GIFT" shall mean the net economic benefit from the transfer that accrues to the donee. 2-203) (RR No, 2 Exemption ____er RC/NRC/RA NRA | deduction Dowry v x Gits tothe v v Government | | Gifts to educational, |v v charitable, religious ete Encumbrances on gift | V v assumed by donee Diminution of gift V v provided by donor | RATES 1) If given to relatives: over Bit not |The tax | Plus TOF the over shall be excess Pi0oT | Exeript | Pigott 200T 0 2% | PiOoT 2007 Soot 2,000 | 4%) 200r | soo im 14,000 6% S0oT im lam 44,000 8% AM aH 3m 204,000 10% 3M su 10M 404,000. | 12%” | 5M 10m 1,004,000 15% | 10 2) If given to strangers ~ 30% NOTE: A stranger is a person who is NOT: 1. Brother or Sister (whether whole or half blood); Spouse; Ancestor; Lineal descendant; Relative by consay collateral line within’ 4 relationship. : inity in the ivil degree of TAX CREDIT FOR DONOR'S TAX PAID TO A. FOREIGN COUNTRY Only resident or citizen can claim tax credit Amount Deductibl a. Actual estate tax paid abroad) -—————— Bim } whichever is lower Limi 1) Net Gift, foreign World Neti’ Philippine Conor's ax 2) Two_or_more_foreian countries are Limit-A = Per Foreian Country Net Gift, per foreign country World Net-cift x Philippine Limit B - By Total Les Net Gift all foreign countries i! World Net Gift fone Tax DEADLINE FOR FILING OF RETURN - within 30 days from date of donation NOTE: No allowed extension, DEADLINE FOR PAYMENT - pay as you file.5 PROFESSIONAL SERVICES, INC. ————$— 4, Donor’s tax is M. PLACE OF FILING a Except in Cases where the © Sommisioner otherwise permits, the return shall be led 8nd the tax pad to te felloning rere te donor was demicied. at te tne of the water there be naga redence iiplnes, wth Commissioner: oe 1)" authorized agent bank 2) Revenue Dati oficer 5} Revenve Calecion fcr or 4) Duly authorized Treasurer of the City cor municipality bb. In the case of gifts made by a nonresident, the return may be filed with 1) Philippine Embassy or Consulate in the Country where he is domiciled at the time of the transfer, or 2) Directly with the officer Commissioner of the MULTIPLE CHOICE The common characteristic of transfer taxes is that 8 the tramster of property a. Isonerous. 4/2 fut b. Takes effect /‘during the lifetime of the transferor. = [oyoit yy Takes effect upon the death of the transferor. ~~" Is gratuitous. f A tax imposed on the gratuitous transfer of (ac property between two or more persons who are living at the time the transfer is made a. estate tax ‘c. income Tax 9 1B) donor's tax - “°° Jiv% d. transfer tax One of the following is not a distinction between donation inter vivos and donation mots causa. 2. Donation inter vives takes effect during the lifetime of the grantor while donation mortis causa takes effect after the death of the grantor. b. Donation inter vivas is subject to donor's tax. while donation mortis causa is subject to estate tax, Donation inter vivos requires a _ public document while donation morts causa may not require a public document. ory #9) ¢ 4. Donation interwups Is valued at fair_market value at the time the property is given. while Gonation mortis causa is valued at the fair market valle at the time of the death of the grantor. Abusiness tax ype, ot An excise tax \y 4s ot fan act of liberality wnereby one disposes Arseutously thing oF right in fever of another fio accepts ey we iccesion fie") donation . Sceupation “nS writin ie A let Bb a dcetty {fe the requisites of a donation for a. A property tax & b. A personal tax @ The following purposes of the donor's tax, except one. ‘a, Capacity of the donor J ) Capacity of the donee - *" Delivery of the subject matter or gift d. Donative intent 7. Which of the following is subject to donor's tax? ‘a. Those made between persons who were guilty of adultery or concubinage at the time of the donation. 10, hen isthe donation perfected? u 12, 13. 14. Which of the following donations inter vives may not require that it be in writing? 3 Gonation of personal (movable) property, the 7? value of which exceeds P5,000. 5D Donation of personal (movable) property, the Value of which is P5,000. % Donation of real (immovable) property, the value of which is less than 5,000. ‘A. Donation of real (immovable) property, the value of which exceeds P5,000. For the donation to be considered valid, acceptance of the donation must be made: 2. During the lifetime of the donor only. During the lifetime of the donee only. © During the lifetime of the donor and the donee. “d. None of the choices. 7a) The moment the donor knows of the acceptance by the donee b. The moment the thing donated is delivered, either actually or constructively, to the donee Upon payment of the donor's tax d. Upon execution of the deed of donation ‘A non-resident citizen donor is taxed on his donation of properties: a. Situated in the Philippines only. @) Wherever situated. %._ Situated outside the Philippines only. ._ Situated in the Philippines only subject to the rule of reciprocity, Which of the following is taxable only with respect to properties donated within the Philippines? a. Resident citizen b. Non-resident citizen c_ Resident alien @) Non-resident alien If @ donor is 2 non-resident alien and the rule of reciprocity applies, which of the following properties will not form part of his gross gift? a. Real properties in the Philippines b. Tangible personal properties within the Philippines )) Intangible personal properties within the Philippines d. Allof the choices There is reciprocity, donated property is: when the donor and the ~ Bonoe Property (©) Those made to conceived and unborn children (2) Non-resident alien Intangible Personal © Those made to 2 public officer by reason of his, Property office Au b, Non-resident citizen Immovable 4. ‘Those made between husband and wife during” ¢. Non-resident alien Tangible Personal ,,_ their marrage Sat, Ved Property q ty wed “2 a. Resident alien __Aay kind of property Page 3 of 8 peal cost TAX.2203™ re 15. X, a multinational corporation not doing business in the Philippines, donated 100 shares of stock of said corporation to Mr. "Y", a Filipino citizen. What asthe tax lability, if any, of "x" corporation? a 16. 1. 18. 19. = 20. eS °age4 of 8 The donation is not subject to donor's tax. . The donation is subject to 30% donor's tax based on net gift. c. The donation is subject to graduated rates based on net gift. 4d. The donation is subject to 30% donor's tax based on gross gift First statement: Donor’s tax shall be levied, assessed, collected and paid upon the transfer of property by any person, resident or non-resident, sagt. 768 Mi ‘Second statement: the donor's tax shall apply whether the transfer is intrust or otherwise, whether the gift is direct or indirect, and whether the property is real or personal, tangible or agile. True, True c. True, False b. False, False d. False, True When an indebtedness is cancelled without any service rendered by the debtor in favor of the creditor, the forgiveness of debt will result to: a. taxable income 'b, distribution of dividend ~ Fl €) taxable donation <. taxable estate If an individual performs services for @ creditor who in consideration thereof cancels the debt, the ‘cancellation of indebtedness may amount to a a. Gift b. Capital contribution G. Donation inter vivos @ Payment of income Which of the following renunciations shall not be subject to donor's tax? a. Renunciation by the surviving spouse of his/her share in the conjugal partnership or absolute community after the dissolution of the marriage in favor of the heirs of the deceased spouse or any other person/s (B) General renunciation by an heir, Incucing the surviving spouse, of his/her ‘share in the hereditary estate left by the decedent c Renunciation by an heir, including the surviving spouse, of his/her share in the hereditary estate left by the decedent categorically in favor of identified neir/s to the exclusion or disadvantage of the other co-heirs d. None of the choices Which of the following events is not subject to donor's tax? 3A Filipino citizen donated a parcel of land located in the United States to B, non-resident alien b, Aresident alien made a gift of 200,000 to his daughter on account marriage. c. A nonresident citizen gives his girfriend 2 diamond ring worth P300,000 as a birthday git, — Str of, and B are the only heirs of C. A renounces his share of inheritance in favor of B 21. A gift that is incomplete because of reserved powers, becomes complete when: 1. The donor renounces the power (Liane cc. The sale is for insufficient consideration 24.A, an individual, sola to B (brother-in-law) hs a0 Be Sonor’ death @ Mond i are corect © Land I are not core © Only] i corect &. Only His correct 22. Jay sold his car to Jana for P200,000. Jay's " o. restentetizen &: en aten & Momestert ten 34. Which of the following is not @ deduction from the o. araol extte tox onthe property donated asadmned by the donee ~ eit byeme © e eerstinlom the donated property specifically rovsed bythe Sonat Gotimond senor’ tenon the, donated property assumed by the donee / on Mag 135, Pedro donated a parce! of land to his son, Justine eras account of ustine's produto. Sake ook” posession of the property end wet “ameale enved fom tin 2015, on Seeetiment onthe income "derived. fom the propery nes sued agora ustine. Which of the {atoning statement i corect” 2. The income of Justine should be included inthe Income tax return of Pear. the donor's toe ‘uur on such property has been pad b. The income of ustne shout be clued inthe Income tx return of Pedra even if the donors tor return on such propery hes-nat been paid because tis exempt em donor ais ¢ boneraa 36. One of the following is not an_exempt gift or a deduction from the cross gift oF @ alien donor. resident SB Dowres or gifts on account of marriage Gifts made to or for the use of the National Government or to any political subdivision © Gifts in favor of an educational and/or charitable, religious, cultural or social welfare corporation, institution, accredited —non- government organization, trust or philanthropic organization or research institution or organization 4. Encumbrance on the property donated, if assumed by the donee. 37. All of the following except one are exempt from gift tax under special laws 2a. Donation to Integrated Bar ofthe Philippines B. Donation to Development Academy of the Prilippines ©) Donation to Philippine Institute of Certified Public Accountants 4. Donation to Intemational Rice Research Insttute 38, All of the following, except one, are exempt from donor's tax 8. Donation to the Philippine National Red Cross b. Donation to the Development Academy of the Philippines Donation fire LY given to the victims of the typhoon va nation 9 Ye jChv of Davoo fr pute purpose “festa ded 39. A tax minimization scheme which is done by spreading the gift over numerous calendar years to avail of lower tax liability ~ 2. Spread-out method b. Donation of life insurance “TAX,2203SIONAL SERVICES. INC —— ting of git chelor cient, a Filipino resetigg in Quezon Gity, wants to give hs grifnend a git of Pn0200,000. He seeks your advice, for purposes of reducing sf not eliminating the donor's tax on the git. on wnether itis better for him to give all of the Prp200,000 on Christmas 2016 oF to give Prpi00,000 on Christmas 2016 and the other 010,000 on January 1, 2017. Which of the folowing will be your advice? Split the donation to totally relieve the donor from the donor's tax 1b. Split the donation to reduce the donor's tax. ) Spitting the donation will not reduce the applicable donor's tax. 4. The gift should be made on account of their planned marrage to avail of dowry exemption. 4 Which of the following is a stranger for donor's tax poses? 2 The son of the donor's first cousin 'b. The donor's grandmother € The donor's spouse A child born aut of wedlock of parents who are legally impeded to marry each other at the tyme the child s being conceived 442. Which of the following is @ donation to stranger for donor's tax purposes? a. Gift te an ancestor 1. Gift toa lineal descendant Donation to a nephew @) Donation to a sister company When the donee or beneficiary is a stranger, the tax payable by the donor shall be a. 30% of the gross gifts. B) 30% of the net ots % Based on the graduated rates with the first P 100,000 net gift exempt or 30 % 4. Based on the graduated rates with the first P 100,000 net gift exempt or 30 % of the net gifts whichever is higher. 44, Which of the following scenarios will result to payment of donor's tax at 30% rate? 2. Financial help given to families of SAF members whe died in the Mamasapano Incident through Sagip Kapamilya Foundation b. Motor boats given to victims of Yolanda through the City Government of Tacloban, Moderate donation by a husband to his beloved ~ wife (E) donation made by a managing partner to a 7 partnership which he belongs: 45. ABC Corporation donated 100,000 to the barangay for the purpose of cementing a barangay road where its factory is located Statement 1: The donation is exempt from donor's tx + Statement 2: The corporation may claim full “ deduction for income tax purposes ‘a. Statements 1 & 2 are false By Statement 1 is true but statement 2is faise ©. Statement 1 is false but statement 2 is true @, Statements 1 and 2 are true 448. Which of the following is false? “ge 6 of 8 a. Donor's tax applies also to juridical persons B. For purposes of donor's tax, second cousins are strangers to each other % Encumbrance on the property donated, if ‘esumed by the donor is deductible for donor's tax purposes 4. As a rule, donation between husband and wife during the marriage is vord 47. Donor’s tax credit is not allowed to 2 donor who is Resident citizen Non-resident citizen Resident alien Non-resident alien Br soe 48, The donor's tax return shall be filed within: 2 six (@), months after the date the gift is made. . two (2) months after the date the gift s made cor completed (©) thirty (20) days after the date the gifts made. SS thirty (G0) days after the date the gifts made ‘or completed. 49, Statement 21/4 donation can be bath a part of the Sress ait of the donor and a taxable income to the donee Statement 3:/“A donation may be exempt from Sonor tax cut not necessariy a deduction from the donors gross income a, Only statement 1's tue B only statement 2's tue © Both statements are ue &. Both statements are false 50, Statement 1:Gnly one return shall be filed for several gifts (donabons) made by a donor to different donees on the same date Statement 2: If the donation involves conjugal/community property, each spouse shall file separate return corcesponding to his/her respective share in the conjugal/community property, 2. True, False Arrue, True b. False, True CE False, Faise 51. Statement PAI on any ofe date, there is a donation by one donor to his refative and another one to a stranger, there will be two (2) separate donor's tax returpto te filled. pady- I ‘Statement 2:24 donor's tax, no extension ef time for filing the Sonor's tax return is allowed a. Statement 1 is correct, while Statement 2 is ry ien9 D Statement 1s wrong, white Statement 2's .Bothe Statements are correct 4d. Both Statements are wrong 52. Manolo, a resident of Dagupan City donated to Arturo & property in Laoag City. The danor’s tax is, 40,000. The deed of donation was signed in the residence of Arturo in Baguio City. The donor's tax. in must be fled in, ‘a,) Dagupan City £2 Laoag city “%. Baguio Cty 1. Quezon City 53. The following were the donations made by husband and wife + June 12, 2015 ~ P220,000 cash to a legitimate Son on account of marriage two months ago. it ~ TAX.2203° Wa ~ ue Inz(CEL PROFESSIONAL SERVIC! + May 4, 2016 - Second nana 4 180,000 to wife’s mother. “Og How much is the total donor's ae husband and wife on both dgnations? a. P1,600 b. 10,000 s) 27,000 xf, . P54,000 5 24 Oe tae 3 ee cave ar rane i a ey account of their marriage celebrated on Jul 2013. The donor's tax poyatleiss AY 2. 87,100 oe b. 38,000 a cise ‘The next four (4) auestions are based on the following data On February 25, 2013, Mr. and Mrs. Salomon donated their conjugal land worth P500,000 to their three sons, ‘on account of marriage to one of them who got married § months ago. (On June 9, 2013, they also donated to the child of Mrs. Salomon by first marriage, jewelry wort P75,000 on 59 2 3 ‘account of marriage more than a month after the donation, v Finally on December 25, 2013, they donated to the nephew of Mr. Salomon a building worth P750,000, 40% of which was co-owned by their Kumpare. who agreed to the donation and executed the necessary documents donating his share, 55. The donors tax due on the February 25, 2013 donation should be: 2. P14, 000 for Mr. & Mrs. CB P3, 600 each for Mr. & Mrs. Pa, 000 each for Mr. & Mrs. @. 5, 750 each for Mr. & Mrs. MD 56. The donor's tax due on the June 9, 2013 donation (0) w ‘account of her birthday, P20,000. February To Peta, legitimate daughter, on account seo ener marrage on February 2, 2013, @ tere of antique Jewelry from the capital ay of ire nagpele. The paw Tue of the jeneiry was 50,000; To Estela, legitimate daughter, on account of her graduation, a piece of land costing P500,000. The fair market value per BIR at the time of donation was 1,000,000. Its zonal value was 1,200,000. The piece of land had an Unpaid mortgage of 100,000 which was ‘assumed by the donee. To Lourdes, Mrs. Pinagpala's sister; on ‘account of her forthcoming marriage, ‘cash P100,000. ‘To PRTC University, a non-profit, educational institution, P250,000. ‘To Belmont Shipping Company, a piece of and valued at 700,000. ) To Anecito, legitimate son, on account of his forthcoming marriage, cash of 200,000. october 4 59. How much ts the tax due and payable of Mr. Pinagpala on gifts made on January 2? 2. P19,600 P5600 b. 7,000 . None of the choices 60. How much is the tax due and payable of Mr. Pinagpala on gifts made on February 3? a. P58,400 c. 36,800 (CB) #51.800 d. None of the choices 61 How much is the tax due and payable of Me Prnagpaa on gits mage on-October 4? 2 #136,000 e313, 000 e . P111,800 None of the choices a. Mr. ~ PO; Mrs. ~ Pt, 875 ames Mr. ~ 11,250; Mrs. ~ P4,700 62. Dunng the current year, Me._and Mrs. Cabavles, 4) Me. ~ B14.250; Mes. ~ P1,300 nonresident citizens, donated the folowing Mr. - #14,250; Mrs. - 1.675 Sept.25: To Leona, a legitimate child, on ee ae we agcount of marrage iast_ month, 2 57. The donors tax due onthe GIO. ceil “pages oced ine eee een eM icq. ‘Pores. FH, #0.00 B Nezee7,s00; mes P57, 500 "627 225725 17 10 Leo, nephew of Mr. Cabarles, on ©, Mr ~ 9, 000; Mrs. - P13, 500 7, TG) account “of marriage, 3 propery 7) wr. 9, 000; Mrs. 967, 500 “7 1) located in USA exclusively owned. by G Za him with fair market value of 130,000 58, The donor's tax due on the December 25, 2013 for 45O (gift tax in USA, P 5,500) er Kumpare is a e50,000 PO Oct.9; To Leonor, a legitimate child, conjugal 6. 6,000 4. 30,000 ljnct property in the Phiippines with fair The next three (3) questions are based on the following: Mr. and Mrs. Pinagpala made the following donations ‘during the calendar year 2014 (common property unless otherwise stated). Date Donations January 2 To Maria, legitimate daughter, on account of her forthcoming mariage, 10,000 shares which are not traded in the stock ‘exchange. The book value at the time of donation was PSO per share. iend of couple, To Juana, family Page 7 of 8 4 market value of P100,000. The payable on the September 25 gifts of the husband i: 000 c. P8,357 6,500 d. 12,000 { 63. Using the data in the preceding number, the aift tax payable on the October 9 gift of the husband is — a, 14,000 a. . P500 >) 1,800 d. 4,200 lf xige42 80 2 peEXCEL PROFESSION, a 64. Mr. Riano made the following gitS fo his relatives: Phils USA.) UK <0 father of his mother Italy 742. 70,000 Motorcycle Karen, niece, donation 's Gross gift 750,000 —P500,000 250/000 500,000 201 embodied in the will Deductions 250,000 200,000 150,000 150,000 sr Tax paid — oa 25,000 12,000 10,000 “6. The donor's tax payable on the donation to Then ue tert Co eis ie eee 2 Seta so 157,200 a. P35,600 P33,520 oat >. P724'00 60,600 b. P25,600 3 39,000 Ee l Lint | Sol 67. The total donor's tax payables ~ 65. Pedro gave gifs to the following persons on his 2. P66,000 160,000 30” birthday: 100,000 &. 157,200 > A. second hand car worth P35( Kaskasero, his trusted driver. The donation was made arally. Since then, the driver had taken possession of the property. \/-9/]/) = To is Mayordoma, Ms. Mercy, a lot with 2 bungalow thereon, The value of the property is 1,200,000. The donation provides that t may be'revoked anytime at the please pf Mikey KB Rona, = His flower shop worth P200,000 to Hardiner, Fis gardener, The donation is provided in his wile gly ter Cash of 950,000 each to his(éhree houseboys. p.000) CS How much is the donor's tax due on the above donations? a P720,000 <. 100,000 *D) 45,000 d. P1,000 Next two (2), questions are based on the following information: Juan, single, donated the following properties on September 21, 2014: Value Property Donee 100,000 Cash_—Pedro, brother, on account of marriage 200,000 Jewelries Nena, girlfriend residing in Japan 1,500,000 House & parents, siiver wedding lot anniversary gift 75,000 Lot gy. Ligaya, for use as site of barangay hall 300,000 Car_—_ Carling, brother, donation is revocable 50,000 Cash __ International Rice Research Institute 100,000 Cash Guillermo, father of the \ Page 8 of 8 10""to! 68. Amanda Raya sold her properties to her son on the fp 6 7 following prices Residential house for P100,000 Personal properties for P50,000 The current fair market value on the date of sale was 1,000,000 for the house, and P500,000 for the personal properties. ‘Assuming that you know the facts as a BIR officer, the correct tax payable on the transaction is oe the year, he sold a parcel of land valued at __P2,500,000 to his long time buddy, Leomar, for ‘only P1,500,000. The property was purchased by Mike two years ago at a cost of 1,200,000. Determine the correct taxes due ‘Donor's Tax Capital Gains Tax a. P750,000 Po b. 450,000 72,000 360,000 90,000 @ Po 10,000 70. Assuming the parcel of land sold by Mike is Classified as ordinary asset, determine the correct taxes due, x Donar's Tax Capital Gains Tax @ ~~ P300,000 Po . 450,000 72,000 © 360,000 90,000 4 Po 150,000 = done ~ TAX.2203