DONORS TAX: THEORY

1. For the donation to be considered valid, acceptance of the donation must be made.

a. during the lifetime of the donor only.

b. during the lifetime of the donee only
c. during the lifetime of the donor and the donee
d. none of the choices

2. First statement: Donors tax shall be levied, assessed collected and paid upon the
transfer of property by any person , resident or non-resident as a gift.
Second statement: For the purpose of donor’s tax, a stranger is a person who is
not a relative by consanguinity in the collateral line within the fifth degree of
relationship.

a. True, True
b. False, False
c. True, False
d. False True

3. One of the following donees will not entitle the donor-parent to a P10,000 dowry
exemption.

a. Legitimate Child
b. Recognize Natural Child
c. Adopted Child
d. Stepchild

4. Which of the following statement is incorrect?

a. A separate return shall be filed by each donor for each gift or donation made
on different dates during the year reflecting therein any previous net gift made
in the same calendar year.

b. Only one return shall be filed for several gift or donations by a donor to the
different donees on the same date.

c. When a donors tax return was filed and it was found out by the BIR to have
errors which gave rise to a deficiency donors tax, the donor cannot be required
to pay the deficiency.

d. The government is not legally bound by the agreement between the donor and
the donee that the later shall pay the donors tax instead of the former.
5. First statement: In all cases, void donations are not subject to donors tax.
Second statement: Every donation between the spouses during the marriage shall
be void.

a. both statements are true

b. both statements are false
c. First statement is true while second statement is false
d. First statement is false while the second statement is true

6. Mr. John Samuelson, resident alien, donated a piece of jewelry to his son who got
married on January 15, 2009. The piece of jewelry was mailed to his son on
January 10, 2009 and was accepted on January 20, 2009. When is the last day to
file the donors tax return?

a. February 9, 2009
b. February 14, 2009
c. February 19, 2009
d. March 20, 2009

7. When a property is donated in contemplation of death the basis of the tax shall be:

a. Fair market value at the time of death

b. Fair market value in the hands of the donor before the time of donation
c. Fair market value at the time of death of the donor
d. Cost when the property was acquired

8. Which of the following is a stranger for donor’s tax purposed?

a. A child born out of wedlock of parents who are legally impeded to marry
each other at the time the child is being conceived.
b. The son of the donor’s first cousin
c. The donor’s grandmother
d. The donor’s spous

9. When the donee is a stranger the tax payable is:

a. 30% of the gross gifts

b. 30% of the net gifts
c. based on the graduated tax rates
d. based on the graduated tax rates or 30% of gross gifts whichever is higher
10. First statement: A donation on which the donor’s tax is net paid is a valid
donation
Second statement: Title to a tax –exempt donation of a real property cannot be
transferred to the donee in the Register of Deeds unless the donor’s tax on the
donation had been paid

a. True, True
b. False, False
c. True, False
d. False, True

11. The donation of personal (movable) property may be made:

I. Orally of the value is P5,000 or less requiring simultaneous delivery.

II. In Writing if the value is more than P 5,000

a. Both I and II are correct

b. Both I and II are incorrect
c. Only I is correct
d. Only II is correct

12. The donation of movable property may be made:

a. Orally
b. Writing
c. Either A or B
d. Neither A or B

13. Using the preceding number, the donation and acceptance should be in writing if
the value of the property donated is:

a. Less than P 5,000

b. P5,000 or less
c. P5,000 or more
d. More than 5000

14. The donation of an immovable property shall be made

a. In writing
b. In public instruments
c. Either A or B
d. Orally
15. Using the preceding number, acceptance by the donee may be made:

a. In same deed of donation

b. In a separate document
c. Either A or B
d. Neither A or B

16. A. For the purpose of donor’s tax, second degree cousins are strangers to each
other.
B. Encumbrance of the property donated, if assumed by the donor is deductible
for the donors tax purposes.

a. True, True
b. True, False
c. False, True
d. False, False

17. A. As a rule, donation between husband and wife during marriage is void
B. Donation can be made to conceived or unborn children

a. True, True
b. True, False
c. False, True
d. False, False

18. A donation which takes upon the death of the donor

a. Donation mortis causa

b. Partakes of the nature of a testamentary disposition
c. Shall be governed by the law on succession
d. A, B and C

19. A donation which is intended by the donor to take effect during his lifetime

a. Shall be subject to donor’s tax using the tax table for donation
b. Shall be in writing if the value exceeds P 5,000
c. Donation inter vivos
d. A, B and C

20. A. gift is perfected from the moment the donor effects the delivery either actual or
constructively of the property donated.
B. Donors tax is a property tax imposed on the property transferred by way of gift
inter-vivos

a. True, True b. True, False c. False, True d. False, False

ANSWER KEY

1. C
2. C
3. D
4. C
5. C
6. C
7. C
8. B
9B
10. C
11. A
12. C
13. D
14. B
15. C
16. B
17. A
18. D
19. C
20. D