Professional Documents
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Chapter 16 Tax
Chapter 16 Tax
Chapter 16 Tax
Discussion Questions
1. What is donor's tax? Briefly discuss.
2Explain the difference of donation inter-vivos from donation mortis causa.
3. Enumerate and explain each of the rationalization of donor's taxation.
4. Enumerate and explain each of the essential requisites of donation.
5. Discuss the formal requisites of donation.
6. Enumerate and discuss the classification of donor's.
7. Who are strangers and relatives in donor's taxation? Explain briefly
including the donor's tax rules on each donee.
8. Discuss the rules on donation of common properties and donation to
several donees.
9. Enumerate the list of exempt donations.
10. Enumerate the list of prohibited or defective donations.
11. Illustrate the donor's tax format.
fideicommissary
18. Transfer from the first heir to the second heir in
the grantor
25. Transfer of property for an adequateconsideration
True or False 1
1. Donor's tax is a tax on the gratuitous disposition of property by a living
donor.
2. Donor's tax is a property tax.
3. Donees and benefactor of donees have the primary obligation to pay the
donor's ax.
4. The amount of donor's tax is paid depends on the value of the property
donated.
5. Donor's tax is applicable to donation mortis causa made inter-vivos.
6. Donor's tax is intended to minimize loopholes in both income tax and estate
tax.
7. Donor's tax is also imposed to counter evasion from business tax.
9
8. A donor must be at least 18 years of
age to make valid donation.
a
Donation may be implied when the transferor is not claiming the return of
his property.
10. Donations, void or valid, are subject to tax.
11. The donee's acceptance is required for the completion of the donation.
. The delivery of the donor of the property to be donated perfects the
contract of donation.
Chapter 16- Introduction to Donation and Donor's Tax
True or False 2
8. Which is not required in taxation of transfers for less than adequate and full
consideration?
a. Intention of the donor
b. Acceptance of the donee
C. Delivery
d. A and B
9.
9. What is the required form in the donation of real property?
a. Written agreement
b. Public instrument
C. Oral agreement
d. A or B
b. Donation to half-brothers
C. Donation to step-sisters
brother
d. Donation to an adopted
donor's tax
progressive
donation is subject to
6.
6. The following
Donation to a foster child
a. natural son
Donation to a recognized
b. brother-in-law
C.
C. Donation to a
second cousin
d. Donation to a
Chapter 16- Introduction to Donation and Donor's Tax
are subject to
donor's tax.
7. Statement 1: Donations to residents or citizens
from donor's tax.
are exempt
Statement 2: Donations to non-resident aliens
Which is correct?
a. Statement 1 c. Both statements
d. Neither statement
b. Statement 2
exempt.
Which statement is correct?
c. Both statements
a. Statement 1
d. Neither statement
b. Statement 2
11. Which of the following donation to is not exempt from donor's tax?
a. Donation to the International Rice Research Institute
b. Donation to a government-owned and controlled corporation
C. Donation to the Integrated Bar of the Philippines
d. Donation to the Philippine Inventors' Commission
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Chapter 16- Introduction to Donation and Donor's Tax
Which is correct?
c. Both statements
a. Statement 1
d. Neither statement
b. Statement 2
d. All of these
donor is a
from tax if the
Donation of foreign properties is exempt
17. C. non-resident citizen.
a. resident citizen.
d. non-resident alien.
resident alien.
b.
on donor's
tax?
to a reciprocity exemption Philippines by
18. Which is subject property situated
in the
Donation of intangible personal
a.a.
a non-resident citizen.
situated in the Philippines by
Donation of intangible
personal property
b.
a resident alien. by
situated in the Philippines
Donation of intangible
personal property
C.
a non-resident alien.
All of these
d.
to
these is subject to donor's tax
the reciprocity rule applies, which of
19. When donor?
non-resident alien
a
Property Location
a. Cash Philippines
b. Land Japan
C. Car Philippines
d. Franchise Japan
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Chapter 16- Introduction to Donation and Donor's Tax
22. Statement 1: For purposes of the donor's tax, second-degree cousins are
strangers to each other.
Statement 2: Encumbrance on the property donated, if assumed by the
donor, is deductible for donor's tax purposes.
a. True, True b. True, False c. False, True d. False, False
(RCPA)
23. Statement 1: A donation between husband and wife during the marriage is
generally void.
Statement 2: A donation can be made to conceived or unborn children.
a. True,True b. True, False c. False, True d. False, False
2. Mr. Berto sold his family home for P2,000,000. His family home was
acquired 10 years ago for P1,000,000. At the date of sale, his property had a
fair value of P2,500,000. Compute the gratuity subject to donor's tax.
a. PO C.P1,000,000
b. P 500,000 d. P1,500,000
3. On June 4, 2014, Mr. Momoy donated a car worth P800,000 to Mr. Palaboy
subject to the condition that Mr. Palaboy must graduate college not later
than October 2014. Mr. Palaboy graduated from his course. The property
was now worth P700,000. The same was purchased by Mr. Momoy at a cost
of P1,000,000.
In 2009, Don Bosco transferred a lot to Basco revocable within five years.
4.
Bosco did not
The property had a fair value of P2,000,000 at that time. Don
in
revoke the property. In 2012, Don Bosco waived his right to the property
favor of Basco. The property had a fair value of P2,500,000 in
2012 and
P3,000,000 in 2014
donor's tax.
Compute the gratuity subject to
a. PO c. P 2,500,000
b. P 2,000,000 d. P 3,000,000
6. Mr. John Hay, a resident alien, sold a residential lot with a fair value of
P6.000,000 for only P3,000,000. He acquired the property 20 years ago for
only P500,000. Compute the amount subject to donor's tax.
a. PO c. P3,000,000
b. P 2,500,000 d. P6,000,000
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Chapter 16- Introduction to Donation and Donor's Tax
Multiple-Choice -
Problems: Part 2
1. On May 2, 2015, Uno donated the following properties:
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Chapter 16- Introduction to Donation and Donor's Tax
a. PO c.P500,000
b. P 400,000 d. P 900,000
alien.
a. P0 c.P 500,000
b. P 400,000 d. P 900,000
10. Mr. Crown, a Canadian citizen who is married and residing in the
Philippines, made the following donations during the year
Cash, to his brother-in-law - P1,000,000
S h a r e s of stocks in Canada to his brother in Canada - P2,000,000
11. A donor made the following transfers to various relatives during the year:
12. Ms. Dina Nalo believes in the chances of Mrs. May Laban for the
congressional seat in their district. She donated P400,000 in cash for the
latter's campaign expenses. Ms. Dina Nalo reported the donation to the
COMELEC.
Which is correct?
a. Ms. Dina Nalo shall
pay P120,000 donor's tax.
b. Ms. Dina Nalo is
exempt from donor's tax on the first P100,000 of the
net gift.
C. The donation is exempt from donor's tax.
d. None of these.