1.

This refer to a tax imposed on the transfer without consideration of

property between two or more persons who are living at the time the transfer
is made.
A. Gift tax
B. Donors tax
C. Donees tax
D. None of the above
2. Which is not a characteristic of a Donors tax
A. Transfer tax
B. Excise tax
C. Gift tax
D. Business tax
3. For donors tax purposes, who of the following is considered as a stranger?
A. Father-in-law
B. Brother
C. Grandfather
D. Spouse
4. Which of the following is not subject to Philippine donors tax?
A. Donations mortis causa
B. Donation which will take upon the birth of the donee
C. A creditor who, out of his affection, cancelled the debt of the debtor
D. A parcel of land in USA donated by nonresident Filipino to a foreigner
5. One of the following gifts is subject to donors tax.
A. Gift to foreign government
B. Revocable donations

C. Gift to Philippine government

D. Donation in contemplation of death
6. The condition and legal know-how of the donor to enter into valid contract
is called
A. Capacity of the donor
B. Acceptance of the donor
C. Capacity of the donee
D. Donative intent
7. Which of the following is subject to donors tax?
A. Donation mortis causa
B. Transfer of inheritance to his successors
C. Gift to a stranger
D. Donation by a suitor which was not accepted by the beneficiary
8. Which one of the following is not an essential element of taxable gift?
A. Capacity of the donor
B. Intent to make a gift
C. Delivery and acceptance of the gift
D. Capacity of the donee
9. The donation to this person is valid
A. Unborn child
B. Spouse
C. Donor
D. None
10. Which of the following may constitute taxable donation?
A. Compromises and settlements

B. General renunciation of inheritance

C. Cancellation of stockholders indebtedness by the corporation
D. Payments made to dissatisfied heir who has no legally enforceable
rights
11. The first procedure to compute the donors tax is to determine the
A. Gross gifts
B. Net gifts
C. Donors tax
D. Donors residency and nationality

TOPICS FOR DISCUSSIONS

1. FREE TRANSFER FOR LOVE AND AFFECTION
2. CANCELLATION OF INDEBTEDNESS
3. RENUNCIATION OF INHERITANCE
4. FORMULA OF DONORS TAX
4. WHAT IS GROSS GIFT?

5. COMPOSITION OF GROSS GIFTS:

Tangible Personal
Properties
Intangible Personal
Properties
Real Properties

Resident or Citizen Donor

Regardless of location
Regardless of location
Regardless of location

RULE OF RECIPROCITY:

Non-Resident Alien Donor

Situated only in the
Philippines
Subject to the rule of
reciprocity
Situated only in the
Philippines

a. When there is reciprocity The intangible personal properties

situated in the Philippines given as gifts by a non-resident alien
donor are not subject to donors tax.
b. When there is no reciprocity The intangible personal properties
situated in the Philippines given as gifts by a non-resident alien
donor are subject to donors tax.
6. DEDUCTIONS
A. DOWRIES (SINNGE); H&W
B. DONATIONS TO THE NATIONAL GOVERNMENT
C. CHARITABLE, RELIGIOUS, NGOS (ChaReNg 30% LIMIT)
D. ASSUMED ENCUMBRANCE
E. DIMINUTION