Professional Documents
Culture Documents
b. Must be in writing
c. Maybe in private document
d. Must be in public document
8. One of the following is a valid donation
a. Oral donation of a cellular phone worth P4,5000
b. Oral donation of a passenger jeepney worth P150,000
c. A parcel of land worth P5,000 in private document
d. A parcel of land worth P500,000 in a private document
9. Which of the following constitutes a taxable gift?
a. Creditors gratuitous discharge of a debtors obligation
b. One day rent- free use of anothers property
c. A gratuitous transfer by an incompetent
d. An agreement to make a future transfer which is not supported by a
consideration
10.AVANCENA donated a share of stocks of BAES Corporation to BONAOBRA on
April 20, 2015 with a right to revoke it. The donor delivered the property April
25, 2015. On June 20, 2015 AVANCENA relinquished the right to revoke. Ten
days after, the donor died. For purpose of donors tax, the gross gift should
be bases on the value of the shares on
a. April 20, 2015
c. June 20,2015
b. April 25,2015
d. June 30, 2015
11.BUCARILE wrote a letter to CATUSALEM on December 31, 2014 donating her
car worth P350, 000. The letter was received by the latter on January 7, 2015
who accepted the donation. The letter of acceptance was received only by
Warren on January 15, 2015. The donors tax was not paid until May 22,
2016. The donation was consummated on
a. December 31, 20114
c. January 7, 2015
b. January 15, 2015
d. May 22, 2016
12.On August 18, 2015 GLADYS loaned to her sister ANDREA P200, 000 at an
interest of 12% per annum payable one (1) year thereafter. One month
before the debt become due, Marthas husband died. Consequently, GLADYS
informed her sister that she is condoning the loan including the interest. How
much is the value of the donation made by Elizabeth to Martha?
a. P200, 000
c. P220,000
b. P224,000
d. None
13.Which of the following examples is not taxable
a. A Filipino citizen donated a parcel of land located in the United States to B,
nonresident alien.
b. On June 12, 2015, A made a gift of P200 ,000 to his daughter on account
of her marriage celebrated may 21, 2014.
c. MR.DELEGENCIA, a multi-millionaire, gives his wife a diamond ring worth
P120, 000 as birthday gift.
c. Statement 2 only
d. Neither statements
c. Statements 1, 2, and 3
d.
Statements 2 and 3
IV.
c.
Statements 2 and 3
d. Statements 1 and 2
on account of marriage on October 2014 as
P25,000
20,000
50,000
100,000
c. P1,350
d. Exempt
a.
b.
c.
d.
Donation
Donation
Donation
Donation
32.A non-stock, non-profit school always had cash flow problems, resulting in
failure to recruit well trained administrative personnel to effectively manage
the school. In 2015, DON LEON donated P100 million pesos to the school,
provided the money shall be used solely for paying the salaries, wages and
benefits of administrative personnel. The donation represents less than 10 %
of DON LEONs taxable income for the year. Is he subject to donors taxes?
a. No, since the donation is actually, directly, and exclusively used for
educational purposes.
b. Yes, because the donation is to be wholly used for administrative
purposes.
c. Yes, since he did not obtain the requisite NGO certification before he
made the donation.
d. No. because the donation does not exceed 10 % of his taxable income for
2015.
33.There is reciprocity when the donor and the donated propertyDonor
Property
a. Nonresident alien
intangibles
b. Nonresident citizen
immovable
c. Nonresident alien
Tangible personal
d. Resident alien
Any kind of property
34.Which of the following statements is false?
a. Donors tax applies also to juridical persons.
b. For purposes of donors tax, second cousins are strangers to each other.
c. Encumbrance on the property donated, if assumed by the donor is
deductible for donors tax purposes.
d. As a rule, donation between husband and wife during the marriage is void.
35.Which of the following is not a factor in the determination of taxable gifts?
a. Identification of transfers included in gross gift
b. Application of exempt transfers
c. Subtraction of allowed deductions,
d. Multiplying net gift by the applicable rates.
36.Given the following statements:
I.
The donors tax payable on the present donation includes the previous
donations made during the current year.
II.
It is not proper to add the prior net gifts during the current year
because the taxes paid on the donations will just be credited from the
donors tax computed.
III.
The tax rate on the tax table for donors tax are relatively lower than
the tax rates in the tax table for estate tax.
IV.
The highest tax rate on donors tax is higher than the highest tax rate
on estate tax.
c.
Child
by
natural
d. Grand auntie
500,000
30%
150,000
1,500,000
Less: deduction/Exemption
Mortgage assumed by done
200,000
On account of marriage
10,000
Net gift
210,000
1, 290,000
Tax on P1,000,000
290,000x8%
Gift tax due
44,000
23,200
67,2000
To Calalang:
Net gift
700,000
30%
210,000
67,200
210,000
277,2000
P 250,000
175,000
225,000
45,000
60,000
25,000
c. P245,000
d. P220,000
Land , California
Land and building in Sulu
P250,000
175,000
Car, California
225,000
45,000
60,000
25,000
780,000
44.The gross gift of Annie if she is a nonresident alien without reciprocity isa. P780,000
c. P245,000
b. P295,000
d. P220,000
C
Land and building in Sulu
Jewelries, Philippines
Accounts receivable, Philippines
Gross gift
175,000
45,000
25,000
245,000
45.The gross gift if Annie is a nonresident alien with reciprocity isa. P780,000
c. P245,000
b. P295,000
D
d. P220,000
175,000
Jewelries, Philippines
45,000
Gross gift
220,000
46. Butch made donations to his children in 2015. I which of the following
successive donations will Butch pay donors tax?
a. January 15 To Alma on account of marriage, P40,000.
b. March 15 To Ara on account of graduation, P45,000
c. May 15 To Aiko on account of her 18th birthday, P50,000
d. In all of the above donations.
C
Net gift, May 15
P50,000
30,000
March 15
45,000
125,000
Tax on P100,000
exempt
25,000x 2%
Gift tax
P500
500
Donation on January 15 and March 15 are not subject to tax because they
do not exceed the P100,000 exemption in the tax table.
47.Mr and Mrs. Abubot donated the following community properties to their
children on May 30, 2015.
Amount
Donee
P125,000
Baron For graduating cum laude at Central Philippine University,
Iloilo City
P200,000
Caricot On account of marriage celebrated April 30, 2014
?
Dakila
For placing 3rd in the May 2015 CPA Licensure
Examinations
If the donors tax payable by Mr. Abubot is P10,500, the amount of the
donation given by the spouses to Dakila is?
a. P250,000
c. P500,000
b. P490,000
d. Cannot be determined
C
Algebraic approach:
10,500-2,000
8,500/4%
212,500
Excess over
212,500
First
200,000
Net gift
Let X =
2X
412,500
property
=
(125,000+200,000)1/2 +X
412,500
62,500+100,000+X
412,500
412,500-162,500
250,000
2X
500,000
Alternative Solution:
To Baron (125,000/2)
62,5000
To Caricot (200,000/2)
100,000
To Dakila (squeeze)
250,000
Gross gift
412,500
Less exemptions
-----------
Net gift
Tax on P200,000
212,500x4%
Gift Tax
412,5000
2,000
8,500
10,500
A second hand car worth P350,000 to Kaskasero, his trusted driver. The
donation was made orally. Since then the driver had taken possession of the
property.
To his Mayordoma, Miss Angut, a lot with bungalow theron. The value of the
property is P1,200,000. The donation provides that it may be revoked
anytime at the pleasure of Magulang.
His flower shop worth P700,000 to Hardinero, his gardener. The donation is
provided in his will.
Cash of P50,000 each to the three housemaids.
How much is the donors tax due on the above donations?
a. P720,000
c. P45,000
b. P100,000
d. P1 (,000
C
Gross gift (50,000x3)
150,000
30%
45,000