Problems (Donor’s Tax)

Turkina, a Filipina princess made the following donations.

a. To Zaida, a land worth P450,000 in Cubao
b. To Hejia, jewelry worth P100,000 in Hongkong
c. To Shahida, PLDT shares amounting to P150,000
d. To Haida, a building in Italy P1,600,000 mortgaged for P50,000 assumed by the donee.
e. To Goliath, land in Pampanga worth P300,000
f. P300,000 cash, PNB New York to Charlie
g. P200,000 receivable, 50% condoned by Turkina
She has also transferred the following properties:
Selling Price FMV
Car,Makati P200,000 P300,000
Car,USA 300,000 200,000
Res.Land,Mla 1,000,000 2,000,000

1. If she is resident Alien her gross gift is

450,000
100,000
150,000
1,600,000
300,000
300,000
100,000
100,000

3,100,000
2. If she is a NRA non-resident Egyptian, and there is reciprocity law, her gross gift is:
450,000
300,000
100,000 CAR

850,000

Questions 3-6 are based on the following data:

Mr. and Mrs. Lapu-Lapu, made the following donations:

1/25/2019 - To Magellan, their legitimate son, on account of marriage last 1/20/2018, car
worth P400,000, with P200,000 mortgage, ½ was assumed by the donee.

5/31/2019 - To Napoleon, brother of Mr. Lapu-Lapu, his capital property worth P200,000 on
account of marriage 6 months ago of Napoleon with a condition that the donee will pay the
donor’s tax thereon.
7/15/2019- To Donita, daughter of Mrs. Lapu-Lapu by former marriage, on account of her
marriage 12 months ago, Mrs, Lapu-Lapu’s paraphernal property worth P100,000.

8/20/2019- Conjugal car of the couple worth P400,000, with P200,000 unpaid mortgage, ½
assumed by Donita and P500,000 worth of land to their four sons on account of their
graduation, 20% of which was owned by their kumpare who agreed to donate his share thru a
public document.

3. The gift tax due of Mr.Lapu-Lapu as of May 31,2019

4. The gift tax of Mrs. Lapu-Lapu as of July 15,2019 is:
5. The gift taxes payable of Mr. and Mrs. Lapu-Lapu on August 20,2019:
6. The gift tax payable of their kumpare is:

Questions 7&8 are base on the following data:

Mr. Pinya, made the following donations for the year 2019:

April 15- To Natalie, legally adopted child on acct. of marriage last week, car worth P710,000 in
Philippines.
-To Daylan, his daughter, car is USA worth P300,000. They paid $200 donor’s tax in the
US ($1-P45)
July 20- To Tiffany niece in Manila, P200,000 worth of personal property.
-To Nora, legitimate daughter on acct. of marriage in Cebu, July 18,2008 car, worth
P400,000 but mortgaged for P200,000, ½ of which was assumed by the donee.

7. The gift tax due after credit on April 15,2019 is:

710,000+300,000= 1,010,000
TOTAL GROSS GIFT 1,010,000
DEDUCTION 0

NET GIFT 1,010,000

EXEMPT ( 250,000)

TAXABLE GIFT 760,000

TAX RATE 6%

TAX DUE 45,600

TAX CREDIT (9,000)

DONOR TAX PAYABLE 36,600

8. The gift tax payable on July 20,2019 is:
GROSS GIFT 200,000
400,000

TOTAL GIFT 600,000

DEDUCTION (100,000)

NET GIFT 500,000

PRIOR NET GIFT 1,010,000

TOTAL NET GIFT 1,510,000

EXEMPT (250,000)

TAXABLE GIFT 1,260,000

TAX RATE 6%

TAX DUE 75,600

TAX CREDIT 45,600

DONOR TAX PAYABLE 30,000

9. Mr. Romano donated a total amount P500,000, ½ to the Quezon City Hall and ½ to a
charitable institution TAHANAN NI GLORIA. Upon inquiry, it was verified that the charitable
institution’s total receipts from donation amounted to P 10M and its total administrative
expenses reached P 4M. Mr. Romano can claim a total deduction/exemption of: