Professional Documents
Culture Documents
34.All of the following except one, are exempt from donors tax. Which is it?
a. Donation to the Philippine Red Cross.
b. Donation to the Development Academy of the Philippines.
c. Donation directly given to the victims of the eruption of Mount Bulusan.
d. Donation to the City of Davao for public purpose.
C
To be exempt from donors tax, the donation must be given to the following
non-profit institutions: 1) educational, 2) charitable, 3) religious, 4) cultural,
5) social welfare, 6) accredited non-government organization, 7) Philanthropic
organization, and 8) research institution.
Donations directly given to private individuals, no matter how much they may
be inspired by charitable impulses give rise to no exemption.
35.A non-stock, non-profit school always had cash flow problems, resulting in
failure to recruite well trained administrative personnel to effectively manage
the school. IN 2015, Don Leon donated P100 million peos to the school,
provided the money shall be used solely for paying the slaries, wages and
benefits of administrative personnel. The donation represents less than 10 %
of Don Leons taxable income for the year. Is he subject to donors taxes?
(BEQ)
a. No, since the donation is actually, directly, and exclusively used for
educational purposes.
b. Yes, because the donation is to be wholly used for administrative
purposes.
c. Yes, since he did not obtain the requisite NGO certification before he
made the donation.
d. No. because the donation does not exceed 10 % of his taxable income for
2015.
B
36.There is reciprocity when the donor and the donated property-
Donor Property
a. Nonresident alien intangibles
b. Nonresident citizen immovable
c. Nonresident alien Tangible personal
d. Resident alien Any kind of property
A
Taxable gift refers to the properties subject to gift tax. A net gift
multiplied by the applicable tax rates results to donors (gift) tax and not to
taxable gift.
43.Given the following statements:
I. The donors tax payable on the present donation includes the previous
donations made during the current year.
II. It is not proper to add the prior net gifts during the current year
because the taxes paid on the donations will just be credited from the
donors tax computed.
III. The tax rate on the tax table for donors tax are relatively lower than
the tax rates in the tax table for estate tax.
IV. The highest tax rate on donors tax is higher than the highest tax rate
on estate tax.
Choose the best answer.
a. Statements 1 and 2 are false
b. Statements 1, 2, and 4 are false
c. Statements 3 ad 4 are correct
d. Statement 2 is false.
B
44.Mr and Mrs. Abubot donated the following community properties to their
children on May 30, 2015.
Amount Donee
P125,000 Baron For graduating cum laude at Central Philippine University,
Iloilo City
P200,000 Caricot On account of marriage celebrated April 30, 2014
? Dakila For placing 3rd in the May 2015 CPA Licensure
Examinations
If the donors tax payable by Mr. Abubot is P10,500, the amount of the
donation given by the spouses to Dakila is?
a. P250,000 c. P500,000
b. P490,000 d. Cannot be determined
C
Algebraic approach:
Let X = Over P200,000 of net gift
4% X = Rate of tax on over P200,000 of net gift
4%X+2,000 = 10,500
4%X = 10,500-2,000
X = 8,500/4%
X = 212,500
Excess over 212,500
First 200,000
Net gift = 412,500
Let X = Share of Mr. Abubot on the donation of community
property
2X = Total donation of spouses
(125,000+200,000)1/2 +X = 412,500
62,500+100,000+X = 412,500
X = 412,500-162,500
X = 250,000
2X = 500,000
Alternative Solution:
To Baron (125,000/2) 62,5000
To Caricot (200,000/2) 100,000
To Dakila (squeeze) 250,000
Gross gift 412,500
Less exemptions -----------
Net gift 412,5000
Tax on P200,000 2,000
212,500x4% 8,500
Gift Tax 10,500
45.A stranger in donors taxation
a. Great grandchild c. Child by natural
adoption
b. Nephew d. Grand auntie
C