DONOR’S TAX

Donation An act of liberality whereby one disposes gratuitously a thing or right in favor of another
who accepts it
All of the above Which of the following statements is correct?
- Donation is perfected not from the time of acceptance but from the time of
knowledge of the donor that the donee has accepted the donation
- Acceptance must be made during the lifetime of the donor and of the donee
- Donations made to conceived and unborn children may be accepted by those
persons who would legally represent them if they were already born
- All of the above
Both statements are Statement 1: Donation of immovable property may be made orally or in writing
incorrect Statement 2: Regardless of the relationship to the donee, donations made by the donor are
subject to schedular rates of 2% - 15%, if such donation was made prior effectivity of TRAIN
Law. *
An excise tax Donor’s tax is
- A property tax
- A personal tax
- A business tax
- An excise tax
Both statements are Statement 1: Every donation between the spouses during the marriage shall be void. |
incorrect Statement 2: Encumbrance on the property donated, if assumed by the donor is deductible
for donor’s tax purposes
During the lifetime of For the donation to be considered valid, acceptance of the donation must be made
the donor and the
donee
Capital gains tax only of On January 15 2018, Jose sold a vacant lot held as capital asset for 600k to his brother-in-
9,000 law. The assessed value and zonal value of the land were 750k and 1M respectively. The
sale is subject to
All of the above Which of the following statements regarding donation of an immovable property correct?
- The donation must be made in public document specifying therein the property
donated
- The acceptance may be made in the same Deed of Donation on in a separate public
instrument, but it shall not take effect unless it is done during the lifetime of the
donor
- If the acceptance is made in a separate instrument, the donor shall be notified
thereof in an authentic form, and this step shall be noted in both instruments
Is gratuitous The common characteristic of transfer taxes is that the transfer of property
Donor’s tax It is a tax imposed on the exercise of the donor’s right during lifetime to transfer property
to others in the form of gift
Donor’s tax only of On January 15 2018, Jose sold a real property used in business for 600k to his brother-in-
9,000 law. The assessed value and zonal value of the land were 750k and 1M respectively. The
sale is subject to
Both statements are Statement 1: The dowry or gift on account of marriage must be given 1 year before the
incorrect celebration of the marriage
Statement 2: If on any date there is a donation by one donor to his relative and another one
to a stranger, there will be two separate donor’s tax return to be filed
36,000 Patrick, resident alien, made the following donations for 2018: I. April 15: To Hayley (legally
adopted child); Car worth 700k in Philippines; II. April 15: To Rebekah (daughter): Car in
Canada worth 300k. The donor’s tax paid in Canada was $200 ($1 = P45); III. July 20: To
Sophie (niece in Manila): 200k worth of personal property; IV. To Davina (legitimate
daughter on account of marriage, July 18, 2017): Car in Manila, worth 400k but mortgaged
for 200k, 50% was assumed by the donee. The gift tax payable on April 15 is
30,000 Patrick, resident alien, made the following donations for 2018: I. April 15: To Hayley (legally
adopted child); Car worth 700k in Philippines; II. April 15: To Rebekah (daughter): Car in
Canada worth 300k. The donor’s tax paid in Canada was $200 ($1 = P45); III. July 20: To
Sophie (niece in Manila): 200k worth of personal property; IV. To Davina (legitimate
daughter on account of marriage, July 18, 2017): Car in Manila, worth 400k but mortgaged
for 200k, 50% was assumed by the donee. The gift tax payable on July 20 should be
All of the choices are Every donation or grant of gratuitous advantage, direct or indirect, between the spouses
correct exceptions during the marriage, shall be void, except
- Moderate gifts which the spouses may give each other on the occasion of any
family rejoicing
- Donation mortis causa
- Donation propter nuptias which are given before the marriage
Both statements are Statement 1: Title to the donated real property can be transferred to the donee in the
incorrect Register of Deeds even if the donor’s tax on the donation had not been paid.
Statement 2: If the donor retains an unlimited power to revoke the gift, it is clear that gift
has occurred
An employer who pays Who is not subject to the donor’s tax?
premium on the life - An individual making a donation
insurance of its - A corporation making a donation
employee - A partnership making a donation
- An employer who pays premium on the life insurance of its employee
Donation inter vivos One of the following is not a distinction between donation inter vivos and donation mortis
requires a public causa
document while - Donation inter vivos takes effect during the lifetime of the grantor while donation
donation mortis causa mortis causa takes effect after the death of the grantor
may not require a - Donation inter vivos is subject to donor’s tax while donation mortis causa is subject
public document to estate tax
- Donation inter vivos requires a public document while donation mortis causa may
not require a public document
- Donation inter vivos is valued at FMV at the time the property is given while
donation mortis causa is valued at the FMV at the time of the death of the grantor
Both are correct Which of the following constitutes “Gift” for donor’s tax purposes?
- Transfer of property without consideration
- Sales, exchanges and other dispositions of property for a consideration to the
extent that the value of the property transferred exceeds the value in money or
money’s worth of the consideration received thereof
Acceptance may be Which is not true?
made after the lifetime - Donation is perfected only from the moment the donor knows of the acceptance by
of the donor the donee
- Vitiated consent renders the donation voidable
- Acceptance may be made after the lifetime of the donor
- The donee must accept the donation personally or through an authorized person;
otherwise the donation shall be void
Donation of personal Which of the following donation inter vivos may not require that it be in writing?
(movable) property, - Donation of personal (movable) property, the value of which exceeds P5,000
the value of which is - Donation of personal (movable) property, the value of which is P5,000
P5,000 - Donation of real (immovable) property, the value of which is less than P5,000
- Donation of real (immovable) property, the value of which exceeds P5,000
Both statements are Statement 1: A gratuitous transfer is always subject to donor’s tax.
incorrect Statement 2: A donation on which the donor’s tax was not paid is a valid donation
Capital gains tax only of On January 15 2018, Jose donated a vacant lot held as capital asset for 600k to his brother-
60,000 in-law. The assessed value and zonal value of the land were 750k and 1M respectively. The
 land had an unpaid mortgage of 200k, which was not assumed by the donee. The donation
is subject to
Taxable donation When an indebtedness is cancelled without any service rendered by the debtor in favor of
the creditor, the forgiveness of debt will result to
Capacity of the done The following are the requisites of a donation for purposes of the donor’s tax, except on