TRANSFER AND BUSINESS TAXES

Midterm Quiz_02

PROBLEMS: (Write your answers on a one whole sheet yellow pad)

 January 6, 2018 – Donato, being aware how difficult the life of his relative, donates farm lot to
Dennis, 5th degree of consanguinity, amounting to P2M. Dennis signed his name in the deed of
transfer made by Donato and thanked him for his generosity
 February 21, 2018 – During a conversation with Dina, Donato said he will donate P200,000
provided, Dina will pay the P20,000 debt to Ramon for the drugs sold to Donato.
 March 26, 2018 – Donato wrote to Ricky requesting the latter to expedite his pending case in the
office of the Bureau of Internal Revenue. With such request, Donato indicated he will donate P2M.
 August 31, 2018 – Donato donates his valuable Picasso paintings in Italy to the Galleria
dell'Accademia museum, a non-stock, non-profit institution recognized by the Philippines’
National Council for Culture and Arts (NCAA). The painting costs $1M but no tax was imposed as
this was one of the exempted transactions in Italy. Assuming an exchange rate of P52 = $1
 September 29, 2018 – Donato donates a common property to his wife, Donna, amounting to
P10M. Donato’s intention was to waive his right in the property and let his wife administer and
take care how she will dispose of to their children.
 October 10, 2018 – Donato went to a church and donated P20,000 to the priest for the purpose
of supporting the charitable works of the church.
 November 30, 2018 – Donato donated P1,000,000 worth of gifts with a heartfelt dedication to his
nephew, Mike, in celebration for Mike’s achievement in the Certified Internal Auditor
examination. The dedication was written as follows:
o “Dear Mike, at loooooong last, it paid off. I know how much you struggled taking up
Accountancy however, you didn’t give up. You worked harder than anybody in your batch
for being a “slow-learner” as you claimed. Regardless of the reason, we believed in you.
You flunked and didn’t reach the quotas required but, still, you stood up and was able to
conquer the CPA board examination and now, a globally recognized certificate, the CIA.
Congratulations and continue to dream big and soar higher than anybody else. Attached
herewith is your dream watch, Bolex.”
 December 23, 2018 – Donato donated P100,000 worth of gifts with another heartfelt dedication
to his son, Tommy.
Donato donates his house and lot in the United States amounting to $100,000 to his first
cousin. Donor’s tax paid was $7,000. Assuming an exchange rate of P52 = $1

1. How much is the donor’s tax still due on January 6, 2018?

a. P105,000 c. P0.00
b. P120,000 d. Answer not given

2. How much is the donor’s tax still due on February 21, 2018?
a. P0 c. P115,800
b. P10,800 d. Answer not given

3. How much is the donor’s tax still due on March 26, 2018?
a. P0.00 c. P235,000
b. P120,000 d. Answer not given

“That in all things God may be glorified”

-Ora et labora-
4. How much is the donor’s tax still due on August 31, 2018?
a. P0.00 c. P235,000
b. P120,000 d. Answer not given

5. How much is the donor’s tax still due on September 29, 2018?
a. P0.00 c. P610,800
b. P225,000 d. Answer not given

6. How much is the donor’s tax still due on October 10, 2018?
a. P0.00 c. P226,200
b. P225,000 d. Answer not given

7. How much is the donor’s tax still due on November 30, 2018?
a. P0.00 c. P670,800
b. P60,000 d. Answer not given

8. How much is the donor’s tax still due on December 23, 2018?
a. P0.00 c. P544,200
b. P13,570 d. Answer not given

9. Determine the deadline for filing and payment of donor’s tax based on the foregoing questions.

“That in all things God may be glorified”

-Ora et labora-