BUSINESS AND TRANSFER TAXATION 6th Edition (BY: VALENCIA & ROXAS) 40

SUGGESTED ANSWERS
Chapter 6: DONOR’S TAX

CHAPTER 6

DONOR’S TAX
Problem 6-1
1. False – during the lifetime of the donor.
2. True
3. True
4. False – there is no consideration in donation.
5. True
6. False – It is enough that the duly representative of the incapacitated donee to receive the
donation.
7. True
8. False – Real property donation must be put in writing regardless of value.
9. True
10. False – The value of donated personal property must exceed P5,000.
11. True
12. True
13. False – not gifts.
14. False – constitutes dividend income.
15. True
Problem 6-2
1. False – dowry is not allowed to nonresident alien donor.
2. False – the donee’s identity is not material to make the donation valid. The donor can make
donation to an unborn child.
3. True
4. True
5. False – If resident alien donates, he shall be subject to donor’s tax in the Philippines for his
properties within and outside the Philippines
6. True
7. True
8. True
9. False – only one-half of the share is donated.
10. False – only if the gift is on account of marriage.
11. False – only the first P100,000 is exempt.
12. False – may be subject to business tax such as VAT, custom duties, or excise tax.
13. False - When the donee is a stranger, the tax rate is 30%.
14. True
15. False - excise tax – the tax is imposed on the act to transfer property by way of gift inter vivos.
Problem 6-3
1. B
2. D
3. A
4. D
5. A
6. A
7. C
8. B
9. B
10. A
11. C
12. A

Problem 6-4
1. A
2. C
3. D
4. C & A
5. A
6. C
7. D
8. A
9. A
10. D
11. C
12. D

Problem 6-5
1. C
2. D
3. A
4. B
5. A
6. D
7. A
8. A
9. C
10. A
11. C
12. D

ALL RIGHTS RESERVED BY VALENCIA EDUCATIONAL SUPPLY.
This solution manual is not for sale. Any person who sells it in photocopy, mechanical or
electronically is unauthorized and shall be prosecuted in accordance with law.

000.400 P43.000 x 11%) Estate tax P 135.000 120.000.545.000 275.000 P990.000) ( 10.000 (500.000) ( 10.000 P4.200 ALL RIGHTS RESERVED BY VALENCIA EDUCATIONAL SUPPLY. Problem 6-8 C Gross estate Less: Standard deduction Net estate Father P5.000 Donor’s tax on P500.000 x 6%) Total donor’s tax in the Philippines P14.000 x 4%) Total donor’s taxes.400 Problem 6–11 A Donations: Vacation house – conjugal (P500.000 P2.000 Mother P5.000/2) Dowry Net gifts Husband P1.500. mechanical or electronically is unauthorized and shall be prosecuted in accordance with law.000 6.000 120.000 123.000 500.500.000 Excess (P160.000. .000 P4.000/2) Jewelry – exclusive of Mrs.000 P 135. This solution manual is not for sale.600 P167.000 1.000 Donor’s tax on P1.000) P360.000 Problem 6–10 A Wedding gift (P500.000 1.500.750. respectively Mr.000 – P10.000/2) Less: Mortgage assumed by done (P1.000 Wife P1.240.000 Donor’s tax on excess (P1.500.000 Distributable estate (P11.000 Problem 6-7 A Zero.000) Divided by number of heirs Share of each heir P10.000) Casual gift – car Total gift subject to tax P490.000.545.750.400 P8.000.000) P1.240.000. Salonga P250.500.000 275.BUSINESS AND TRANSFER TAXATION 6th Edition (BY: VALENCIA & ROXAS) 41 SUGGESTED ANSWERS Chapter 6: DONOR’S TAX Problem 6-6 D Donation to his unborn grandchild P200.000 Excess (P490.000 (500.000 29. because the renunciation is a general renunciation.000 20.000 P 410.000 P 410.400 Mrs. Salonga Dowry Net gift Donor’s tax on P200.000 ( 10.000 Estate tax on P2.000 – P820.000) P1.000 Excess (P2.000 ( 10. Problem 6-9 B Gross gifts (P3.000 P2.000 7.180.000/2) Car – conjugal (P240.200 P9.600 Note: There is donor’s tax on the renunciation of inheritance because the renunciation is not a general renunciation. Salonga P250.000) P380.000 4 P 2.000 x 4%) (P180.000 x 8%) Donor’s tax P 44. Any person who sells it in photocopy.500.

000 – P200.000 Donor’s tax on P200.BUSINESS AND TRANSFER TAXATION 6th Edition (BY: VALENCIA & ROXAS) 42 SUGGESTED ANSWERS Chapter 6: DONOR’S TAX Problem 6–12 D Donation to girlfriend is a donation to non-relative. not subject to donor’s tax.600 6.000 x 2 lots) Less: Deductions Net gifts. November 15. 200A Less: Deductions . and therefore.000 Tax on excess (P440. hence subject to donor’s tax – the entire amount of P250. Problem 6–14 D Donation between spouses during marriage time is void.000 Donor’s tax on P200. 2.600 P 11.000 9.000 0 P300. .000 4.000) Net gift P .000 P440. not subject to donor’s tax.000 Problem 6–18 D P60.0 P300.000 x 4%) Donors tax – 2005 P2. hence. 200A P 2.000 10. net gifts Total net gifts P150. Any person who sells it in photocopy.000 donor’s tax exempt P110.000) x 4% Total donor’s tax Less: Donor’s tax – August 15. 200A P300.dowry Net gifts. 200A Add: Previous.000 P296.000 Letter D Wedding gifts.000 P100.000.000 10. It is the 6th degree of the collateral line. August 15. A 2nd cousin is a stranger for donor’s tax purposes.000 – P200.000 P140.600 ALL RIGHTS RESERVED BY VALENCIA EDUCATIONAL SUPPLY. Problem 6–15 D Wedding gift Less: Dowry Net gift – first P100. This solution manual is not for sale. Problem 6–13 A Donations made between a man and a woman living together as husband and wife are void.000.000 3. Letter C Gross gifts.000 300. as of November 15.000) x 4% Total donor’s tax P P 2.000 6.840 Problem 6–17 C Donor’s tax (P50. as of August 15.840 P5.000 4. Problem 6–19 1.000 or 30% of P200. 200A (P150.000 x 2%) P1.000 Excess (P96.000 P 5.000 Donor’s tax on P200.000 – P6. 200A Donor’s tax payable – November 15. mechanical or electronically is unauthorized and shall be prosecuted in accordance with law.000 Net gift taxable is Problem 6–16 D 2005 gift – house and lot Less: Dowry (P10.000 Tax on excess (P300.

000 With reciprocity P .000 x 30%) P60.000 First donation: Donated value of P200.000 10.000 Problem 6–23 D No deduction is allowed for donations on account of birthday.0 - P 204.000 x 30%) P3.400.000 P420.000 P135.000 P100.000.0 - No dowry deduction is allowed for nonresident alien donor.000 24. Problem 6–27 A Donor’s tax Surcharge (P100.000 400.000 x 30%.000 500.000 x 30%) Problem 6-22 D P2.000. Daughter-in-law is not a relative by blood within the 4th collateral line for donor’s tax purposes.000 The donation is taxable because more than 30% of it shall be used for administration purposes.000 P900.000 290.000 11.600 .000 P .000.000 Donor’s tax P 2.000 No reciprocity P3.000 Second donation: First donation – total value Excess donation (6% x 400. Any person who sells it in photocopy. Problem 6–21 D Donor’s tax (P8.000) Dowry deducted Total value of first donation Value of Donation P200. .000 P38.000 20. ALL RIGHTS RESERVED BY VALENCIA EDUCATIONAL SUPPLY.000 10.600 P14. This solution manual is not for sale.000.000 Excess donation (4% x P290. mechanical or electronically is unauthorized and shall be prosecuted in accordance with law.000.BUSINESS AND TRANSFER TAXATION 6th Edition (BY: VALENCIA & ROXAS) 43 SUGGESTED ANSWERS Chapter 6: DONOR’S TAX Problem 6–20 C P30.000 x 25%) Interest (P100.000 or P100.000 x 20% x 6/12) Total amount due Problem 6–28 D Taxable gift in the Philippines Donor’s tax on P3.000 Problem 6–26 A Donor’s tax (P10. Problem 6–24 B Gross gift (FMV at time of donation) P200.000 P500.000 P920.000) Total after dowry deducted Add: Dowry deducted in two donations (P10. P13.000 x 2) Total Less: First donation Value of second donation P500.000 25.000 Problem 6–25 B Donor’s tax (P200.

000 Donor’s tax P5.000 .000 Excess (P2.000 P1.000/5.000.000 Tax credit.000. This solution manual is not for sale.350.400 P1. Any person who sells it in photocopy.000 x 500. Donors tax for relatives: Mar.000/5.000 10.000 10.000 P404.000 Total P135.000 Excess (P90. limit (P1.090.000 Tax savings if estate tax is paid (P404. on account of marriage Mortgage assumed by L on property donated Net gifts Problem 6–32 1.000 120.000 Estate tax P5. limit (P404. .To his daughter on account of graduation Total Less: Dowry Net taxable gifts Donor’s tax on P1.000 P10.000 136.000 .000 P700.400 P 14.200 P 51.To his son on account of marriage Oct.100.000 7.000 200.000.000) x 30% Less: Tax credit Actual donor’s tax – foreign (lower) Tax credit. 1 .000) Donor’s tax still due and payable Problem 6–30 D P40. on account of marriage Total gross gifts Less: Deductions: Dowry for L.BUSINESS AND TRANSFER TAXATION 6th Edition (BY: VALENCIA & ROXAS) 44 SUGGESTED ANSWERS Chapter 6: DONOR’S TAX Problem 6–28 1.000.000 P1. Letter C Philippine donor’s tax P404.000 P404.244.000) Stranger (P5.000.000.000 P4. 1 .000.foreign P120.000.000.364.000 Estate tax on P2.lower 2. on account of marriage To M.000 1.000.000 P 44.000 x 500.200 ALL RIGHTS RESERVED BY VALENCIA EDUCATIONAL SUPPLY.000. mechanical or electronically is unauthorized and shall be prosecuted in accordance with law.000 1.000 – P355.000 100.364.000 P 600.000 P120.000 P1.400 P40.000 x 11%) Donor’s tax on P5.000 Actual donor’s tax .000) . on account of marriage Dowry for M.000.000 Gross amount of asset Less: Standard deduction Net amount subject to tax Problem 6–31 Gross gifts made: To L. P355.000) P 49.000 220.000 – P500.000 x 8%) Total donor’s tax for donations to relatives P500. Letter B Philippine donor’s tax: Relative (P500.000 120.000 500.000 P580. P5.

Problem 6–36 Taxable inadequate consideration .000 x 4%) Donor’s tax for inadequate consideration P 450.000/2) – P10. as renunciation of inheritance Net gift subject to donor’s tax P 200.000 400. Dinero P250.000) ( 2.000 x 8%) Total Donor’s tax paid on March 30.Personal properties (P500.000 P1.000 P1.000) ( 2. Dinero P250. Problem 6–37 1.000 19. This solution manual is not for sale.000 P44.000 Excess (P250.BUSINESS AND TRANSFER TAXATION 6th Edition (BY: VALENCIA & ROXAS) 45 SUGGESTED ANSWERS Chapter 6: DONOR’S TAX 2. .000 P1.200 P44. 200B Donor’s tax on P200.000/2) June 28.000) P59.000 The inadequate consideration in the sale of real property will not be subject to donor’s tax because the sale is subject to 6% final tax based on the selling price or fair market value. December 25. 200A: Average value per share (P500 + P450)/ 2 Multiply by number of shares Taxable base of the gift 2.000 Mrs.000 P 500.000 P 2.000 30% P150. Any person who sells it in photocopy.000 Excess (P50.000 – P50.000 Note: No dowry is allowed for nonresident alien. Donors tax for strangers: Dec. 31 .000 Mr.000. mechanical or electronically is unauthorized and shall be prosecuted in accordance with law.000 500.To his god-children Dec.000 P500. ALL RIGHTS RESERVED BY VALENCIA EDUCATIONAL SUPPLY.To his neighbor Total Multiplied by donor’s tax rate Donor’s tax for donations to strangers Problem 6–33 March 30.000 10.240.000 P 12.200 P63.000) P59. 200B (P2.200 Problem 6–34 Cash his son for wedding held during the year Problem 6–35 To his son on account of marriage during the year To his daughter on account of her birthday To Garci.000 Net taxable gifts Donor’s tax on P1.000 990.400.000. whichever is higher. P 475 1.000 990.000 x 4%) Donor’s tax for donation on June 28.000 P475.000 Excess (P240.200 P63. 25 . 200B (P500.000 19.200 ( 2. 200B P400.240.000 100.000 The same answer with number 1. his brother.000) Donor’s tax on P200.200 ( 2.

000 Problem 6–40 Donations to relatives: 200B: January 31 Car to Uncle Less: Encumbrances assumed by the donee Net taxable gift – January 31.000 November 30 Donor’s tax on P200.000 60.000 P 31.000 Tax on excess (P840. d.000 of donation to relatives shall not be subjected to donor’s tax. The donation is null and void because personal property donated with value exceeding P5. Any person who sells it in photocopy.000 4. Time deposit The amount is P100.000 Donor’s tax P14.000 250. Business Revocable donation is a revocable transfer. subject to estate tax.000 Donor’s tax on P500.000 should be put in writing to become a valid donation.000 P250.000 given to his illegitimate daughter.000 Donations to strangers: 200B: June 30 Cash to Miss Rosal.000 Tax on excess (P250.000 P 12.000 P 40. Parejo car The value of property donated is P200.000 P850. void donation and taxexempt donation. c. mechanical or electronically is unauthorized and shall be prosecuted in accordance with law.000 21.000 2. Specific principles: a.000 P100.000 x 60%) Net taxable gift Donor’s tax for June 30 donation (P40.0 P600.000 and it was made orally. hence.000 ALL RIGHTS RESERVED BY VALENCIA EDUCATIONAL SUPPLY.000 50. e.BUSINESS AND TRANSFER TAXATION 6th Edition (BY: VALENCIA & ROXAS) 46 SUGGESTED ANSWERS Chapter 6: DONOR’S TAX Problem 6–38 There is no donor’s tax because the donations are donation mortis causa. This donation is tax exempt because the first P100.000 – P500. Furniture and fixtures Donation mortis causa is subject to estate tax. Problem 6–39 Car consequently destroyed after delivery to his son P 500.000) x 6% Total Less: Donor’s tax for previous gifts during the year Donor’s tax for November 30 donation P 14.000) x 4% Donor’s tax for January 31 donation P House and lot to his son on account of marriage Less: Dowry exemption (weeding was held beyond one year) Net gifts Add: Previous net gifts during the year Aggregate taxable gift P600.000 4. b. 2002 P300.000 P 35. House and lot Subject to estate tax because the transfer shall take effect upon death of the donor (included in the last will and testament).000 x 30%) P 2. a radio manager Less: Diminution of gift (P100.000 – P200.000 . This solution manual is not for sale. .

000 . Any person who sells it in photocopy.120 ALL RIGHTS RESERVED BY VALENCIA EDUCATIONAL SUPPLY.600 Nilo Co P100.000 – P10.000 240.000 x 4% Total Surcharges (P7.320 P12.000 P130.000 40.000 5.000 500. 200A 90.000 Nila Co P250.000 Tax on excess P40.000 1.200 x 20% x 11/12) December 30.000 Total donor’s tax during 200B: Total donor’s tax to relatives (P30. 200A Total net gift during 200A Tax on P200.000 P 2.000 5.000 P167.000 + P120.000 132.000 Tax exempt P 600 Problem 6–42 1. This solution manual is not for sale.000 x 30%) P 3.000 P240.000 P50. 200A gift Christmas gift to son Previous gift – June 1.000 1.000 x 2% = donor’s tax payable Oct. . 200A gift Gift on account of their daughter’s marriage Less: Dowry Net gift Tax on P200.000 Nila Co P100. 31.000 P240. January 29.000) Total donor’s tax for the year 200B P 35.0 - Donor’s tax for August 31 donation October 31 None Cash to non-profit organization – 40% Administrative Less: Deduction Net taxable gift P400.000 P340.000 – P10. 200B 2.000 240.600 1.200 x 50%) Interest (P7.000 P 2.000 Problem 6–41 Donor’s tax on gift to stranger (P10.000) Total net gift during the year P 40.600 P 7.000 Net gift to daughter on account of marriage (P50. mechanical or electronically is unauthorized and shall be prosecuted in accordance with law.600 P 3.0 P400.600 3.200 3.000 P .600 P 2.600 P 2.600 3.000 x 30%) P120.000 10.000) Add: Previous net gifts: April 1 – Gift to mother June 10 – Wedding gift to son (P50.000 10.000) Total donor’s tax to stranger (P12.000 Donor’s tax on P100.000 Donor’s tax for October 31 donation (P400.600 P 7.000 P340. June 1.600 P 3.400 + P4.000 Tax on excess P140.000 x 4% Total Less: Tax on previous gift Nilo Co P250.600 P 7.000 Donor’s tax on excess P30.BUSINESS AND TRANSFER TAXATION 6th Edition (BY: VALENCIA & ROXAS) 47 SUGGESTED ANSWERS Chapter 6: DONOR’S TAX August 31 Land to National Government Less: Deduction (total amount) Net taxable gift P500.

000 Philippine donor’s tax: First P10.000.500 P 30% 150.000 Donor’s tax on property located in the Philippines (P2.990. Co donated twice already in 200A.000/ P3. habitual and intentional neglect.000.000 x 15%) Total Less: Tax credit allowed ($20.004.000 600.000 533 P12.990.248.000 x P50/$1) Donors tax rate for donation made to strangers Net donor's tax P 1.000 x 20% x 4/12) P 4. yet they did not pay the donor’s tax within 30 days from the date of donation in both occasion. Problem 6–43 Relative P44.000 x P50) – P10.120 Note: The surcharge is willful neglect (50%) because Mr and Mrs. mechanical or electronically is unauthorized and shall be prosecuted in accordance with law. .402.House and lot ($500.000 P P 500. Any person who sells it in photocopy.490M) x P2.000 P644.500 P2.000 Problems 6–44 Property donated: To son .000 x 30%) Total donor’s tax in the Philippines Computation of donor’s tax still due and payable: Total donor’s tax in the Philippines Less: Allowable tax credit: .000 P644.000 Tax on excess (P14. 500. Computation of tax credit allowed: Limit 1: (P24.252.000 P600.000 Strangers Taxable base .000 Total amount to be paid on June 1.000 4.Actual lower than limit Limit (P1.000.000 Donor’s tax still due and payable Stranger Total P 44.500 P 3.000.990. lower amount ($20.000 2.667 P574.000 Donor’s tax on property located in Japan.000 P 4.000 P214.000 ALL RIGHTS RESERVED BY VALENCIA EDUCATIONAL SUPPLY.402.000 x 50%) Interest (P8.BUSINESS AND TRANSFER TAXATION 6th Edition (BY: VALENCIA & ROXAS) 48 SUGGESTED ANSWERS Chapter 6: DONOR’S TAX Donor’s tax on current gift Surcharge (P8.000 70.000 Total .500 1.000. 200B P 8.000 .990M/ P25. P 2. P 2.000.000.000 Carabaw FX – to brother-in-law Gift to Relatives P24.252.000) x P644. This solution manual is not for sale.000.373 Allowed: Actual. P1. no donor’s tax.335.000 x P50/$1) P1.533 P24. hence. P24.000 . Hence.500 Note: Donation to common-law-wife is void.

000.000 P1.000 Donation to relative – father Total net gifts P2.200 P179. Donation to wife – null and void c.000 119.500.500.000/2) d.000 P1.000. P4.000.000/2) c. Donation to stranger – daughter-in-law (P2.000.000.000 2.000. .000 P 44.000 ( 400.200 P 44.BUSINESS AND TRANSFER TAXATION 6th Edition (BY: VALENCIA & ROXAS) 49 SUGGESTED ANSWERS Chapter 6: DONOR’S TAX Problems 6–45 Assume donations are made to strangers: Total net gifts Philippine donor’s tax (P10.000. Donation to relative – father Total amount of gross gifts subject to donor’s tax 200. Gross gifts subject to donor’s tax a.000 . Any person who sells it in photocopy.000 ALL RIGHTS RESERVED BY VALENCIA EDUCATIONAL SUPPLY.000 P502.000.000 x 5/10) Actual – lower Donor’s tax payable Assume donations are made to relatives: Philippine donor’s tax Tax credit: Limit (P1.200 P163.200 Tax on P1.000) P 604.000 2.000 Donor’s tax Donation to relatives: Donation to son on account of marriage – relative (P5.000.004.000 x 8%): (P1.000 Don Dona P1.000/2) f.000.490. Donation to political party – not subject to donor’s tax P10.000/2) – P10. Donation to Philippine government – not subject to Donor’s tax e.690. Donation to religious group – considered stranger (P1. Donation to NGOs – generally not subject to donor’s tax h.000 135.000. Donation to secretary – stranger b.300. Donation to son on account of marriage – relative (P5.000. mechanical or electronically is unauthorized and shall be prosecuted in accordance with law. This solution manual is not for sale. No donation 2.000 ( 400.000 P3.000 500.490.600. Donation mortis causa – not subject to donor’s tax g.000 200. b.000 P2.000 P1.490.000 P4.000 Exclusive donations by Don: a.000 Tax on excess (P1.500.000 x 5/10) Actual – lower Donor’s tax payable Problems 6–46 1.000 P2.000 x 30%) Tax credit: Limit (P3.004.000) P2.690.000 500.000 x 8%) Total donor’s tax due – donation to relatives 100.

500 P250.000 P150. 200B: Relatives: Son (P500.500 P33.000 P 50.000 Tax on excess (P325.BUSINESS AND TRANSFER TAXATION 6th Edition (BY: VALENCIA & ROXAS) 50 SUGGESTED ANSWERS Chapter 6: DONOR’S TAX Donation to strangers: Donation to stranger – daughter-in-law (P2.000 30% P 45. 200B 5.000 P100.000 P 659. 30. Oct.000 x 6%) Total donor’s tax payable – June 30. 200B: Void donation – husband and wife 6. 200A: Relative .000 P500.200 Don Dona P140.000)/2 Add: Previous net gifts to relatives – Mar.000 30% P 480.000/2) Donation to religious group – considered stranger (P1. This solution manual is not for sale. 200B: Relative – son on account of marriage (dowry already taken) (P2.000 30% P15.000 30% P 45.000 P825.000 250.000 30% P15.000 P825.000.000 Stranger – daughter-in-law (P100.000 30% P 450.000) Tax on P100.000 P25. Dec.000 100. 30. Any person who sells it in photocopy. P1. 200B: Stranger – Chinese government (P200.000.000/2) Donation to secretary – stranger Total amount – donation to strangers Multiplied by donor’s tax rate to strangers Total donor’s tax due – donation to strangers Total amount of donor’s tax Problems 6–47 Donor’s tax 1. 30.000.000/2) Total Multiplied by applicable donor’s tax rate Donor’s tax due P 50.000/2) Donor’s tax Tax on P500.000/2) – P10.000 30% P 30. 4.000 25. 200B: Relatives – nephew (P50.000 P 613.000 100.000 Exempt P800 P50. P1.000 Tax on excess (P40.500 P33. P1.000 500.000.000 P100.000 P500.000/2) Daughter (P500.000 Jan.000 P50.000 Exempt P25.500.000 19. 1.000 P1.000 P800. mechanical or electronically is unauthorized and shall be prosecuted in accordance with law.000 .000 30% P 30.200 500. 200B Add: Previous net gifts to relatives during 200B: ALL RIGHTS RESERVED BY VALENCIA EDUCATIONAL SUPPLY.000/2) Multiplied by applicable donor’s tax rate Donor’s tax due 2.000 June 30.000 25. 31.000 Exempt Stranger – god son (P100. 30.000 P150.on account of son’s marriage (P300.500 P14.000/2) Multiplied by applicable donor’s tax rate Donor’s tax due March 31.000 – P400.000 x 2%) – donor’s tax due 3.000 P14.000/2) Total net gifts to relatives – Dec.000 19.000. .000 Exempt P800 P140. Dec.000 100.600.000 250.000 P250.000/2) Church (P200. 200B Total net gifts P800.

200B Donor’s tax payable as of Dec. 200B – relatives Stranger – daughter-in-law (P100.500 P50. 30. 200B: Relatives – nephew (P50. mechanical or electronically is unauthorized and shall be prosecuted in accordance with law.325. 200B Tax on P1.000 P70.000 26.500 P36.000 P44. 30.000 x 8%) Total Less: Donor’s tax previously paid 200B (Relatives)-June 30.500 P44. Any person who sells it in photocopy.000 ALL RIGHTS RESERVED BY VALENCIA EDUCATIONAL SUPPLY.000 Tax on excess (P325.000 P50.000/2) Multiplied by applicable donor’s tax rate Donor’s tax due 25. .000 800.000.000 P70.000 800.500 P36.000/2) June 30.BUSINESS AND TRANSFER TAXATION 6th Edition (BY: VALENCIA & ROXAS) 51 SUGGESTED ANSWERS Chapter 6: DONOR’S TAX March 31.000 26.000 P1.000 25.000 P33.000.000 P33. 200B: Relative – son on account of marriage (dowry already taken) (P2.325.000 P1.000 30% P 15.000)/2 Total net gifts to relatives as of Dec.000 – P400.000 30% P 15. This solution manual is not for sale.