DONORS TAX: THEORY

1. For the donation to be considered valid, acceptance of the 10. First statement: A donation on which the donor’s tax is net paid
donation must be made. is a valid donation
a. during the lifetime of the donor only. Second statement: Title to a tax –exempt donation of a real
b. during the lifetime of the donee only property cannot be transferred to the donee in the Register of
c. during the lifetime of the donor and the donee Deeds unless the donor’s tax on the donation had been paid
d. none of the choices a. True, True
b. False, False
2. First statement: Donors tax shall be levied, assessed collected c. True, False
and paid upon the transfer of property by any person , resident d. False, True
or non-resident as a gift.
Second statement: For the purpose of donor’s tax, a stranger is 11. The donation of personal (movable) property may be made:
a person who is not a relative by consanguinity in the collateral I. Orally of the value is P5,000 or less requiring simultaneous
line within the fifth degree of relationship. delivery.
a. True, True II. In Writing if the value is more than P 5,000
b. False, False a. Both I and II are correct
c. True, False b. Both I and II are incorrect
d. False True c. Only I is correct
d. Only II is correct
3. One of the following donees will not entitle the donor-parent to
a P10,000 dowry exemption. 12. The donation of movable property may be made:
a. Legitimate Child a. Orally
b. Recognize Natural Child b. Writing
c. Adopted Child c. Either A or B
d. Stepchild d. Neither A or B

4. Which of the following statement is incorrect? 13. Using the preceding number, the donation and acceptance
a. A separate return shall be filed by each donor for each gift should be in writing if the value of the property donated is:
or donation made on different dates during the year a. Less than P 5,000
reflecting therein any previous net gift made in the same b. P5,000 or less
calendar year. c. P5,000 or more
b. Only one return shall be filed for several gift or donations d. More than 5000
by a donor to the different donees on the same date.
c. When a donors tax return was filed and it was found out 14. The donation of an immovable property shall be made
by the BIR to have errors which gave rise to a deficiency a. In writing
donors tax, the donor cannot be required to pay the b. In public instruments
deficiency. c. Either A or B
d. The government is not legally bound by the agreement d. Orally
between the donor and the donee that the later shall pay
the donors tax instead of the former. 15. Using the preceding number, acceptance by the donee may be
made:
5. First statement: In all cases, void donations are not subject to a. In same deed of donation
donors tax. b. In a separate document
Second statement: Every donation between the spouses during c. Either A or B
the marriage shall be void. d. Neither A or B
a. both statements are true
b. both statements are false 16. A. For the purpose of donor’s tax, second degree cousins are
c. First statement is true while second statement is false strangers to each other.
d. First statement is false while the second statement is B. Encumbrance of the property donated, if assumed by the
true donor is deductible for the donors tax purposes.
a. True, True
6. Mr. John Samuelson, resident alien, donated a piece of jewelry b. True, False
to his son who got married on January 15, 2009. The piece of c. False, True
jewelry was mailed to his son on January 10, 2009 and was d. False, False
accepted on January 20, 2009. When is the last day to file the
donors tax return? 17. A. As a rule, donation between husband and wife during
a. February 9, 2009 marriage is void
b. February 14, 2009 B. Donation can be made to conceived or unborn children
c. February 19, 2009 a. True, True
d. March 20, 2009 b. True, False
c. False, True
7. When a property is donated in contemplation of death the basis d. False, False
of the tax shall be:
a. Fair market value at the time of death 18. A donation which takes upon the death of the donor
b. Fair market value in the hands of the donor before a. Donation mortis causa
the time of donation b. Partakes of the nature of a testamentary disposition
c. Fair market value at the time of death of the donor c. Shall be governed by the law on succession
d. Cost when the property was acquired d. A, B and C

8. Which of the following is a stranger for donor’s tax purposed? 19. A donation which is intended by the donor to take effect during
a. A child born out of wedlock of parents who are his lifetime
legally impeded to marry each other at the time the a. Shall be subject to donor’s tax using the tax table for
child is being conceived. donation
b. The son of the donor’s first cousin b. Shall be in writing if the value exceeds P 5,000
c. The donor’s grandmother c. Donation inter vivos
d. The donor’s spous d. A, B and C

9. When the donee is a stranger the tax payable is: 20. A. gift is perfected from the moment the donor effects the
a. 30% of the gross gifts delivery either actual or constructively of the property donated.
b. 30% of the net gifts B. Donors tax is a property tax imposed on the property
c. based on the graduated tax rates transferred by way of gift inter-vivos
d. based on the graduated tax rates or 30% of gross gifts a. True, True b. True, False
whichever is higher c. False, True d. False, False