DONORS TAX: THEORY 1. For the donation to be considered valid, acceptance of the donation must be made. a. b. c. d.

during the lifetime of the donor only. during the lifetime of the donee only during the lifetime of the donor and the donee none of the choices

2. First statement: Donors tax shall be levied, assessed collected and paid upon the transfer of property by any person , resident or non-resident as a gift. Second statement: For the purpose of donor’s tax, a stranger is a person who is not a relative by consanguinity in the collateral line within the fifth degree of relationship. a. b. c. d. True, True False, False True, False False True

3. One of the following donees will not entitle the donor-parent to a P10,000 dowry exemption. a. b. c. d. Legitimate Child Recognize Natural Child Adopted Child Stepchild

4. Which of the following statement is incorrect? a. A separate return shall be filed by each donor for each gift or donation made on different dates during the year reflecting therein any previous net gift made in the same calendar year. b. Only one return shall be filed for several gift or donations by a donor to the different donees on the same date. c. When a donors tax return was filed and it was found out by the BIR to have errors which gave rise to a deficiency donors tax, the donor cannot be required to pay the deficiency. d. The government is not legally bound by the agreement between the donor and the donee that the later shall pay the donors tax instead of the former.

Fair market value at the time of death Fair market value in the hands of the donor before the time of donation Fair market value at the time of death of the donor Cost when the property was acquired 8. d. 2009. d. b. When a property is donated in contemplation of death the basis of the tax shall be: a. Second statement: Every donation between the spouses during the marriage shall be void. 2009. resident alien. The donor’s spous 9. 2009 7. John Samuelson. When is the last day to file the donors tax return? a. 2009 March 20. d. 30% of the gross gifts 30% of the net gifts based on the graduated tax rates based on the graduated tax rates or 30% of gross gifts whichever is higher . c.5. d. The piece of jewelry was mailed to his son on January 10. A child born out of wedlock of parents who are legally impeded to marry each other at the time the child is being conceived. c. c. both statements are true both statements are false First statement is true while second statement is false First statement is false while the second statement is true 6. b. Mr. February 9. void donations are not subject to donors tax. b. c. b. 2009 February 19. The son of the donor’s first cousin c. When the donee is a stranger the tax payable is: a. First statement: In all cases. 2009 and was accepted on January 20. b. a. 2009 February 14. The donor’s grandmother d. donated a piece of jewelry to his son who got married on January 15. Which of the following is a stranger for donor’s tax purposed? a.

Both I and II are correct Both I and II are incorrect Only I is correct Only II is correct 12. b. b. d. d. Less than P 5. II. c. b. In Writing if the value is more than P 5. b. c. d. b.10. False False.000 or less requiring simultaneous delivery. In writing In public instruments Either A or B Orally .000 or more More than 5000 14. False True. c. The donation of movable property may be made: a.000 a. d. c. True 11. The donation of an immovable property shall be made a. c. Using the preceding number.000 or less P5. True False. d. Orally of the value is P5. Orally Writing Either A or B Neither A or B 13.000 P5. The donation of personal (movable) property may be made: I. First statement: A donation on which the donor’s tax is net paid is a valid donation Second statement: Title to a tax –exempt donation of a real property cannot be transferred to the donee in the Register of Deeds unless the donor’s tax on the donation had been paid a. the donation and acceptance should be in writing if the value of the property donated is: a. True.

For the purpose of donor’s tax. d. c. B. b. A. True. False False.000 Donation inter vivos A. Donors tax is a property tax imposed on the property transferred by way of gift inter-vivos a. A donation which is intended by the donor to take effect during his lifetime a. False 18. d. d. if assumed by the donor is deductible for the donors tax purposes. True False. A. True. d. A. B. c. b. True False. b. acceptance by the donee may be made: a. c. False c. B and C 20. Donation can be made to conceived or unborn children a. Using the preceding number. True. False . gift is perfected from the moment the donor effects the delivery either actual or constructively of the property donated. c. Donation mortis causa Partakes of the nature of a testamentary disposition Shall be governed by the law on succession A. Shall be subject to donor’s tax using the tax table for donation Shall be in writing if the value exceeds P 5. donation between husband and wife during marriage is void B. second degree cousins are strangers to each other. False 17. B and C 19. True b. As a rule. Encumbrance of the property donated. In same deed of donation In a separate document Either A or B Neither A or B 16. b. True. True d. False. d. True True.15. False. True True. a. b. A donation which takes upon the death of the donor a. c. False False.

C 5. C 7. C 11. D 19. A 12. B 9B 10. D . C 2. C 20. C 13. A 18. D 4. B 17. C 6. C 16. B 15. D 14. C 8.ANSWER KEY 1. C 3.

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