Problem 1

Gross Gifts

A donor made the following donations during the year:

*To Abel, a car worth ₱800,000

*To Jen, condominium unit worth ₱3,000,000 in Macau
*To Gore, GJ Company shares (domestic corp,) amounting to ₱250,000
*To Alexa, ₱100,000 worth of shares of stick of a resident foreign
corporation where 90% of its operation is in the Philippines.
*To Earl, a Building in Singapore valued at ₱5,000,000 mortgaged for
₱2,000,000 assumed by the donee
*To Hanniah, parcel of land in Isabela, ₱1,500,000
*To Chen, ₱100,000 bank deposit to BPI
*To Kristine, ₱100,000 bank deposit in Metrobank, U.S. Branch
*To Gavrie, ₱500,000 cash

The donor also made the following transfer of properties within the year:

Land 1 - Q.C.
Land 2 - Taguig
Land 3 - U.S.A.
Car - Manila

Required: Determine the amount of gross gifts subject to donor's tax

assuming the donor is:

a) Resident Citizen
b) Non-Resident Citizen
c) Resident Alien
d) Non-Resident Alien with reciprocity
e) Non-Resident Alien wihout reciprocity

Answers with solution:

A) Resident Citizen
Cash (100,000+100,000+500,000)
Real Property (3,000,000+3,000,000+1,500,000)
Personal Property
Intangible Property (250,000+100,000)
Land 3 (10,000,000-5,000,000)
Car-Manila (1,000,000-800,000

B) Non-Resident Citizen
Cash (100,000+100,000+500,000)
Real Property (3,000,000+3,000,000+1,500,000)
Personal Property
Intangible Property (250,000+100,000)
Land 3 (10,000,000-5,000,000)
Car-Manila (1,000,000-800,000

C) Resident Alien
Cash (100,000+100,000+500,000)
Real Property (3,000,000+3,000,000+1,500,000)
Personal Property
Intangible Property (250,000+100,000)
Land 3 (10,000,000-5,000,000)
Car-Manila (1,000,000-800,000

D) Non-Resident Alien with reciprocity

Cash (100,000+500,000)
Real Property
Personal Property
Car-Manila (1,000,000-800,000

E) Non-Resident Alien without reciprocity

Cash (100,000+500,000)
Real Property
Personal Property
Intangible Property
Car-Manila (1,000,000-800,000
INTANGIBLE

INTANGIBLE

Consideration Received FMW at the time of transfer

₱2,000,000 3,000,000
3,000,000 2,000,000
5,000,000 10,000,000
800,000 1,000,000

₱700,000
7,500,000
800,000
350,000
5,000,000
200,000
₱14,550,000

₱700,000
 7,500,000
800,000
350,000
5,000,000
200,000
₱14,550,000

₱700,000
7,500,000
800,000
350,000
5,000,000
200,000
₱14,550,000

₱600,000
1,500,000
800,000
200,000
₱3,100,000

₱600,000
1,500,000
800,000
350,000
200,000
₱3,450,000