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Donor S Tax Exam Answers
Donor S Tax Exam Answers
3. Donor’s tax is: 11. Using the preceding number, acceptance by the
a. A property tax c. A business tax donee may be made:
b. A personal tax d. An excise tax a. In same deed of donation
b. In a separate document
4. The following are the requisites of a donation for c. Either A or B
purposes of the donor’s tax, except one. d. N e i t h e r A o r B
a. Capacity of the donor
b. Capacity of the donee 12. A non-resident citizen donor is taxed on his
c. Delivery of the subject matter or gift donation of properties:
d. Donative intent a. Situated in the Philippines only.
b. Wherever situated.
5. Which of the following is subject to donor’s tax? c. Situated outside the Philippines only.
a. Those made between persons who were guilty d. Situated in the Philippines only subject to the
of adultery or concubinage at the time of the rule of reciprocity.
donation.
b. Those made to conceived but yet to be born 13. Which of the following is taxable only with respect
children. to properties donated within the Philippines?
c. Those made to a public officer by reason of his a. Resident citizen
office. b. Non-resident citizen
d. Those made between husband and wife during c. Resident alien
their marriage. d. Non-resident alien
6. Which of the following is not subject to donor’s 14. Which of the following statements is correct?
tax? I. A donation by a nonresident alien of shares of
a. Donation mortis causa. stock of a domestic corporation is subject to
b. Donation which will take effect upon birth of
donor’s tax if such corporation have acquired
the donee.
c. A creditor who, out of his affection, cancelled business situs in the Philippines.
the debt of the debtor. II. A donation by a resident alien of shares of
d. A parcel of land in U.S.A. donated by a stock of a foreign corporation will only be
nonresident Filipino to a foreigner. subject to donor’s tax if at least 85% of the
business of such corporation is located in the
7. Which of the following donations inter vivos may
Philippines.
not require that it be in writing?
III. A donation by a nonresident alien of bonds of a
a. Donation of personal (movable) property, the
value of which exceeds P5,000. foreign corporation (90% of the business of
b. Donation of personal (movable) property, the such corporation is located in the Philippines)
value of which is P5,000. is subject to donor’s tax.
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28. Alpha Corporation is transferring its office from 35. A tax minimization scheme which is done by
Makati to Manila. It sold to Omega Corporation its spreading the gift over numerous calendar years to
existing lot and office building valued at P80M for avail of lower tax liability -
P60M. What tax should be imposed and collected a. Spread-out method
from Alpha Corporation as a result of the b. Donation of life insurance
transaction? c. Splitting of gift
a. Capital gains tax d. Void donation
b. Donor’s Tax
c. Real property Tax 36. Your bachelor client, a Filipino residing in Quezon
d. Capital gains tax and Donor’s Tax City, wants to give his girlfriend a gift of P400,000.
He seeks your advice, for purposes of reducing if
Next three (3) questions are based on the following data: not eliminating the donor’s tax on the gift, on
Rody, a resident citizen made the following donations. whether it is better for him to give all of the
a. To Mar, a land worth P450,000 in Manila. P400,000 on Christmas (December 25, 2018) or to
b. To Leni, jewelry worth P100,000 in Japan. give P200,000 on Christmas and the other
c. To Miriam, PLDT shares amounting to P150,000. P200,000 on January 1, 2019.
d. To Jojo, a building in Italy P1,600,000 mortgaged
for P50,000 assumed by the donee. Which of the following will be your advice?
e. To Allan, land in Davao worth P300,000. a. Split the donation to totally relieve the donor
f. To Antonio, P300,000 cash, PNB New York from the donor’s tax.
g. P200,000 receivable to Joy, 50% condoned by b. Split the donation to reduce the donor’s tax.
Rody c. Splitting the donation will not reduce the
applicable donor’s tax.
Rody also transferred the following properties: d. The gift should be made on account of their
Selling Price FMV planned marriage to avail of dowry exemption.
Car, Makati P200,000 P300,000
Car, Malaysia 300,000 200,000 37. When the donee or beneficiary is a stranger, the
Rest House, tax payable by the donor for donations beginning
Tagaytay 1,000,000 2,000,000 January 1, 2018 shall be:
Rest House, a. 30% of the gross gifts.
Malaysia 1,500,000 2,500,000 b. 30% of the net gifts.
29. How much is the gross gift? c. 6% of net gifts in excess of P250,000
a. P5,200,000 c. P4,100,000 d. Based on the graduated rates.
b. P4,200,000 d. P3,200,000
38. ABC Corporation donated P600,000 to the
30. If he is a non-resident Alien, his gross gift is: barangay for the purpose of cementing a barangay
a. P3,200,000 c. P1,100,000 road where its factory is located.
b. P1,200,000 d. P850,000 Statement 1: The donation is exempt from donor’s
tax
Statement 2: The corporation may claim full
31. If he is a non-resident alien, and there is deduction for income tax purposes
reciprocity law, his gross gift is: a. Statements 1 & 2 are false
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b. Statement 1 is true but statement 2 is false her graduation, a piece of land costing
c. Statement 1 is false but statement 2 is true P500,000. The fair market value RPT
d. Statements 1 and 2 are true Declaration at the time of donation was
P1,000,000. Its zonal value was P1,200,000.
39. On July 18, 2018, Mr. Dela Cruz gave a property The piece of land had an unpaid mortgage of
with a fair market value of P550,000 to Lester, a P100,000 which was assumed by the donee.
legitimate son, and Jennifer, Lester’s bride, on
account of their marriage celebrated on July 19, To Lourdes, Mrs. Pinagpala's sister; on
2017. The donor’s tax payable is: account of her forthcoming marriage, cash
a. P87,100 c. P84,100 P100,000.
b. P38,000 d. P18,000
October 4 To Bantay Bata, an accredited non-stock non-
The next four (4) questions are based on the following profit organization, P250,000.
data: To Belmont Shipping Company, a piece of
On February 25, 2018, Mr. and Mrs. Salomon donated land valued at P700,000.
their conjugal land worth P500,000 to their three sons. To Anecito, legitimate son, on account of his
One of them is getting married which prompted the forthcoming marriage, cash of P200,000.
donation.
44. How much is the donor’s tax payable of Mr.
On June 9, 2018, they also donated to the child of Mrs. Pinagpala on gifts made on January 2?
Salomon by first marriage, jewelry worth P75,000 on a. P19,600 c. P6,600
account of marriage more than a month after the donation. b. P7,000 d. P600
Finally on December 25, 2018, they donated to the 45. How much is the donor’s tax payable of Mr.
nephew of Mr. Salomon a building worth P750,000, 40% of Pinagpala on gifts made on February 3?
which was co-owned by their Kumpare who agreed to the a. P58,400 c. P36,800
donation and executed the necessary documents donating b. P51,800 d. P45,000
his share.
46. How much is the tax donor’s tax payable of Mr.
40. The donor’s tax due on the February 25 donation Pinagpala on gifts made on October 4?
is: a. P126,000 c. P111,000
a. P14,000 for Mr. & Mrs. b. P111,800 d. P27,000
b. P3, 600 each for Mr. & Mrs.
c. P4, 000 each for Mr. & Mrs. 47. Donor’s tax credit is not allowed to a donor who is
d. P0 for each spouse a:
a. Resident citizen
41. The donor’s tax due on the June 9 donation is: b. Non-resident citizen
a. Mr. – P2,250 for each spouse c. Resident alien
b. Mr. – P11,250; Mrs. – P4,700 d. Non-resident alien
c. Mr. – P11,250; Mrs. – P1,100
d. Mr. – P11,250; Mrs. – P1,875 Use the following data for the next two (2) questions:
48. During the current year, Mr. and Mrs. Cabarles,
42. The donor’s tax due on the December donation is: non-resident citizens, donated the following:
a. Mr. – P9, 875; Mrs. – P13, 500
b. Mr. – P67, 500; Mrs. – P67, 500 Sept. 25: To Leona, a legitimate child, on account of
c. Mr. – P13,500; Mrs. – P13, 500 marriage last month, a conjugal property
d. Mr. – P9, 000; Mrs. – P67, 500 located in the Philippines, FMV, P600,000.
To Leo, nephew of Mr. Cabarles, on
43. The donor’s tax due for their Kumpare on account of marriage, a property located in
December 25 donation is: USA exclusively owned by him with fair
a. P90,000 c. P0 market value of P150,000 (gift tax in USA,
b. P18,000 d. P3,000 P5,000)
The next three (3) questions are based on the following: Oct. 9 : To Leonor, a legitimate child, conjugal
Mr. and Mrs. Pinagpala made the following donations property in the Philippines with fair market
value of P100,000.
during the calendar year 2018 (common property unless
otherwise stated):
The gift tax payable on the September 25 gifts of
Date Donations
the husband is:
January 2 To Maria, legitimate daughter, on account of
a. P8,000 c. P8,600
her forthcoming marriage, 10,000 shares
b. P3,000 d. P7,000
which are not traded in the stock exchange.
The book value at the time of donation was
49. Using the data in the preceding number, the gift
P50 per share.
tax payable on the October 9 gift of the husband
is:
To Juana, family friend of couple, on account
a. P8,000 c. P7,100
of her birthday, P20,000.
b. P3,000 d. P2,500
February 3 To Petra, legitimate daughter, on account of
50. Mr. Riano made the following gifts in 2018:
her marriage on February 1, 2019, a piece of Phils. USA UK Italy
antique jewelry from the capital property of
Gross gift P750,000 P500,000 P250,000 P500,000
Mr. Pinagpala. The fair market value of the Deductions 250,000 200,000 150,000 150,000
jewelry was P50,000. Tax paid — 25,000 12,000 10,000
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