Quizzer-Donor’s Tax

1. An act of liberality whereby one disposes gratuitously a thing or right in favor of another
who accepts it
A. Succession
B. Occupation
C. Donation
D. Tradition
2. It is a tax imposed on the exercise of the donor’s right during lifetime to transfer property
to others in the form of gift
A. Estate Tax
B. Donor’s Tax
C. Property Tax
D. Income Tax
3. Which of the following statements is correct?
A. A transfer is gratuitous or without consideration and accordingly qualifies as a
donation, if no economic benefit measurable in money or money’s worth flowed to
transferor from the transferee.
B. A gratuitous transfer is always subject to donor’s tax.
C. A donation on which the donor’s tax was not paid is not a valid donation.
D. Title to the donated real property can be transferred to the done in the Register of
Deeds even if the donor’s tax on the donation had not been paid.
4. Donor’s tax is:
A. A property tax
B. A personal tax
C. A business tax
D. An excise tax
5. Donor’s tax is a/an
I. Excise tax
II. Direct tax
III. Personal tax
IV. Property tax
A. I and II only
B. I, II, and III only
C. I, II, IV only
D. I, II, III and IV
6. The common characteristic of transfer taxes is that the transfer of property:
A. Is onerous
B. Takes effect during the lifetime of the transferor
C. Takes upon the death of the transferor
D. Is gratuitous
7. Which of the following donation inter vivos may not require that it be in writing?
A. Donation of personal (movable) property, the value of which exceeds P5,000.
B. Donation of personal (movable) property, the value which is P5,000.
C. Donation of real (immovable) property, the value of which is less than P5,000.
D. Donation of real (immovable) property, the value which exceeds P5,000.
8. The following are the requisites of a donation for purposes of the donor’s tax, except
one.
A. Capacity of the donor
B. Capacity of the donee
C. Delivery of the subject matter
D. Donative intent

9. For the donation to be considered valid, acceptance of the donation must be made:
 A. During the lifetime of the donor only.
B. Durng the lifetime of the done only.
C. During the lifetime of the donor and the donee.
D. None of the choices.
10. When is the donation perfected?
A. 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.
C. Upon the payment of the donor’s tax.
D. Upon the execution of the deed of donation.
11. Which is not true?
A. The donation is perfected only from the moment the donor knows of the acceptance
by the donee.
B. Vitiated consent renders the donation voidable.
C. Acceptance may be made after the lifetime of the donor.
D. The donee must accept the donation personally or through an authorized person;
otherwise the donation should be void.
12. For donations made prior to 2018, where 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 gifts
C. Based on the graduated rates with the first P100,000 net gift exempt or 30%
D. Based on the graduated rates with the first P100,000 net gift exempt or 30% of the
net gifts whichever is higher.
13. For donor’s tax purposes, one of the following is a stranger.
A. Brother or sister
B. Spouse
C. Uncle
D. Son in law
14. Which of the following constitutes “gift” for donor’s tax purposes?
A. The transfer of property without consideration.
B. Sales, exchanges, and other dispositions of property for a consideration to the extent
that the value of the property transfer exceeds the value in money or money’s worth
of the consideration received thereof.
C. Both a and b.
D. Neither a nor b.
15. Which of the following transactions is deemed taxable gift?
A. Condonation or remission of debt
B. Sale of residential house and lot for less than an adequate and full consideration in
money or money’s worth.
C. Both a and b.
D. Neither a nor b.
16. 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
C. Taxable donation
D. Taxable estate
17. On January 15, 2018, Jose sold a vacant lot held as capital asset for P600,000 to his
brother-in-law. The assessed value and zonal value of the land were P750,000 and
P1,000,000 respectively. The sale is subject to:
A. Subject to donor’s tax only of P9,000
B. Subject to capital gains tax only of P60,000
C. Subject to donor’s tax of P9,000 and capital gains tax of P60,000
 D. Subject to donor’s tax of P9,000 or capital gains tax of P60,000 at the option of Jose.
18. On January 15, 2018, Jose sold a real property used in business for P600,000 to his
brother-in-law. The assessed value and zonal value of the land were P750,000 and
P1,000,000 respectively. The sale is subject to:
A. Subject to donor’s tax only of P9,000
B. Subject to capital gains tax only of P60,000
C. Subject to donor’s tax of P9,000 and capital gains tax of P60,000
D. Subject to donor’s tax of P9,000 or capital gains tax of P60,000 at the option of Jose.
19. On January 15, 2018, Jose donated a vacant lot held as capital asset for P600,000 to
his brother-in-law. The assessed value and zonal value of the land were P750,000 and
P1,000,000 respectively. The land had an unpaid mortgage of P200,000, which was not
assumed by the donee. The donation is subject to:
A. Subject to donor’s tax only of P9,000
B. Subject to capital gains tax only of P60,000
C. Subject to donor’s tax of P9,000 and capital gains tax of P60,000
D. Subject to donor’s tax of P9,000 or capital gains tax of P60,000 at the option of Jose.
20. Which of the following is false?
A. Donor’s tax applies to juridical persons
B. For purposes of donor’s tax, second cousins are strangers to each other
C. Encumbrance on the property donated, if assumed by the donor is deductible for
donor’s tax purposes
D. As a rule, donation between husband and wife during the marriage is void.
21. 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.
B. Those made to conceived and unborn children.
C. Those made to be a public officer by reason of his office.
D. Those made between husband and wife during their marriage.
22. Who is not subject to donor’s tax?
A. An individual making a decision
B. A corporation making a donation
C. A partnership making a donation
D. An employer who pays premium on the life insurance of its employee
23. A non-resident citizen donor is taxed on his donation of properties:
A. Situated in the Philippines only
B. Wherever situated
C. Situated outside the Philippines only
D. Situated in the Philippines only subject to the rule of reciprocity
24. 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
D. Non-resident alien
25. If a donor is a 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
C. Intangible personal properties within the Philippines
D. All of the choices

Next three (3) questions are based on the following data:

 Juliet, a Filipina made the following donations:
a. To Nick, a land worth P450,000 in Manila
b. To Rosalee, jewelry woth P100,000 in Japan
c. To Adalind, PLDT shares amounting to P150,000
d. To renard, a building in Italy P1,600,000 mortgaged for P50,000 assumed by the donee
e. To Drew, land in Davao worth P300,000
f. P300,000 cash, PNB New York to Hank
g. P200,000 receivable, P50% condoned by Juliet
She has also transferred the following properties:
Selling Price FMV
Car, Makati P200,000 P300,000
Car, Malaysia 300,000 200,000
Rest house, Tagaytay 1,000,000 2,000,000
Rest house, Malaysia 1,500,000 2,500,000

26. How much is the gross gift?

A. P5,200,000
B. P4,200,000
C. P4,100,000
D. P3,200,000
27. If she is a non-resident alien, her gross gift is:
A. P3,200,000
B. P1,200,000
C. P1,100,000
D. P850,000
28. If she is a non-resident alien, and there is reciprocity law, her gross gift is:
A. P850,000
B. P950,000
C. P1,050,000
D. P700,000
29. Which of the following is not subject to donor’s tax?
A. A Filipino citizen donated a parcel of land located in the United States to B, non-
resident alien.
B. A resident alien made a gift of P200,000 to his daughter on account marriage.
C. A non-resident alien citizen gives his girlfriend a diamond ring worth P100,000 as a
birthday gift.
D. A and B are the only heirs of C. A renounces his share of inheritance in favor of B.
30. If the gift is made in properties, it shall be appraised at its:
A. Fair market value as of the time the donor’s tax is filed.
B. Fair market value as of the time of donation.
C. Historical cost at the time the donated property was acquired.
D. Value in the hands of the donor.