Creditorâ€™s gratuitous discharge of a debtorâ€™s obligation.
One day rent free use of another's property
A gratuitous transfer by an incompetent
An agreement to make a future transfer which is not supported by a consideration.

The donation of personal (movable property may be made: I. Orally if the value is P5,000 or less requiring simultaneous delivery II. In writing if t...

Both I and II are correct
both statements are incorrect
Only I is correct
Only II is correct

Which of the following donation is required to be in public document?

donation of personal property worth more than 5,000
donation of personal property
donation of real property
donations required to be in writing.

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

during the lifetime of the donor only
during the lifetime of the donee only
during the lifetime of the donor and donee
None of the above.

Statement 1: Citizen or resident donor is subject to donor's tax regardless of where the gift was made or where the property donated is located ...

Statements 1 & 2are false
statement 1 is true but statement 2 is false
statement 1 is false but statement 2 is true
statements 1 & 2 are true

The reciprocity clause in the donor's tax law applies to:

Juan Dela Cruz, a non-resident citizen
Chrispa, a Korean citizen residing in the Philippines
Mrs. Pedro, a Filipino citizen residing in Malaysia
Mr G.I. Joe, a non-resident American

Reciprocity clause is applied to which of the following?

Non-resident alien donating real properly
A donation of tangible property by a non-resident alien
When a resident alien donates intangible property
A donation by a non-resident alien of intangible property

Statement 1: The computation of the donor's tax is on a cumulative basis over a period of one calendar year. Statement 2: Husband and wife are ...

Statements I & 2 are false
Statement I is true but statement 2 is false
Statement I is false but statement 2 is true
Statements I and 2 are true

In computing the donors tax on a subsequent donation, the donor must also consider

Only the present donation
All prior net gifts during his lifetime
The present and immediately subsequent donations
All prior net gifts during the Calendar year

On June 1, 2019, Pedro, a resident citizen, donated a parcel of land to a relative in Makati and a real property located in Canada to a friend. In tak...

Donation to a friend
Donation to a relative
Donation to the relative and to a friend
None of the above

Statement 1: Donation made to a legally adopted child shall be considered as donation made to a relative, subject to 6% donor's tax rate in exces...

Statements 1 & 2 are false
Statement I is true but statement 2 is false
Statement I is false but statement 2 is true
Statements I and 2 are true

When the donee is a stranger, the tax payable by the donor for a donation made in 2018 shall be:

6% of net gifts in excess of P250,000.
30% of net gifts.
Based on the graduated rates
Based on the graduated rates or 30% of the net gifts, at the option of the donor.

When a property is donated, the basis of the donors tax is

The cost of acquisition if acquired by purchase or the fair market value at acquisition date, whichever is higher.
The agreed value by the donor and the donee..
The fair market value at the time of donation.
Any of the above

Statement 1: If the gift is made in properties, it shall be appraised at its fair market value as of the time of donation. Statement 2: In valuing pr...

Statements I & 2 are false
Statement I is true but statement 2 is false
Statement 1 is false but statement 2 is true
Statements 1 and 2 are true

Statement 1: A receivable from a debtor can be a donation only if the creditor notifies the debtor that he is not collecting anymore and the debtor ma...

Statements I & 2 are false
Statement 1 is true but statement 2 is false
Statement I is false but statement 2 is true.
Statements 1 and 2 are true

Which of the following statements is false?

The donor's tax for each calendar year is computed on the basis of the total net gifts made during the calendar year.
Gifts in property shall be valued at the fair market value of the properly at the date of donation.
A gift to the International Rice Research Institute is exempt from gift
None of the above

Which of the following statements is false? I. Contracts of donation between husband and wife are void in all cases. II. The Donation by CJ Sereno t...

I only
II only
I and II only
II, III and IV only

Du30 sold his car to CJ Sereno. The cost of the car was P800,000 and has a fair market value of P600,000 at the time of sale. The sale was considered ...

There is a taxable gift of P800,000
There is a taxable gift of P600.000
There is a taxable gift of P595,000
The transfer is for insufficient consideration, hence, not subject to gift tax.

Statement 1: When the donee is tax exempt, the donation of a taxable individual is also tax exempt Statement 2: Donors tax shall be paid within 30 da...

Statements 1 & 2 are false
Statement 1 is true but statement 2 is false
Statement 1 is false but statement 2 is true
Statements 1 and 2 are true

A resident alien made the following donations in 2018. Which is exempt from donor's tax?

Gifts made on account of marriage and before its celebration by parents to each of their legitimate, recognized natural, or adopted children in the amount of P10,000.
Gifts made to or for the use of the National Government or any entity created by any of its agencies which is not conducted for profit, or to any political subdivision of the said Government
Gifts in favor of an educational and/or charitable, religious, cultural or social welfare corporation, institution, foundation, trust or philanthropic organization or research institution or organization, where more then 30% of said gifts were used by such donee for administration purposes.
All of the above.

Which of the following is subject to donors tax?

Cancellation of debt in exchange for services rendered
Share of one of the heirs which was renounced in favor of another heir.
Transfer of property for less than adequate and full financial consideration.
All of the above

All of the following are subject to donors tax in case there is a transfer for less than adequate and full consideration, except

Real property classified as capital asset
Personal property
Intangible property
Tangible Property

All the following statements are correct, except one. If the donor is a nonresident, not citizen of the Philippines:

Properly situated abroad, but donated to a citizen of the Philippines is exempt from donor's tax
Property situated in the Philippines but donated to a donee abroad will pay the donor's tax
Property in the Philippines with a value of P300,000, donated to a citizen of the Philippines, is subject to donor's tax.
None of the above

In 2018, spouses Romeo and Juliet, both Filipino citizens are owners of a residential house and lot in Quezon City. After the recent wedding of their ...

Pedro and Clara are subject to income tax based on the fair market value o the real property donated to them
Romeo's taxable gift is P500,000
Julietâ€™s taxable gift is P750,000
Romeo's taxable gift Is P1,000,000

When a husband and wife make a donation to their legitimate child on account of marriage during 2020 taxable year, which of the following statements i...

Each of them is entitled for dowry as a deduction from the gross gift
There can only be deduction for dowry if the donation was made before or one year after the celebration of marriage
Either of them can waive his/her right to claim dowry as deduction in favor of the other donor such that one of them may claim a total deduction of P20,000.
None of the above.

Which of the following is not a deduction from the gross gifts?

Unpaid mortgage on the donated property assumed by the donee
unpaid real estate tax on donated property assumed by the donee
Diminution on the property donated specifically provided by the donor.
Unpaid donorâ€™s lax on the property assumed by the donee.

On February 2020, Mr. and Mrs. Mapagbigay donated a conjugal parcel of land to their son who was getting married within six (6) months after the date ...

P2,740,000
P2,250,000
P2,500,000
P2,490,000

In 2018, Lester made the following donations: -June 1 2018: To his best friend, Mr. Martin - P1,500,000 on account of marriage celebrated on May 1, 2...

P4,500,000
P4,570,000
P4,590,000
P4,350,000

On February 14. 2018, Clifford donated a property located in Manila and cash as follows: -Land with a fair market value of P680,000. To a legitimate ...

P700,000
P730,000
P740,000
P750,000

Professor X, a renowned Filipino scientist, made the following donations during 2018: -February 29: Cash of 500,000 to Barangay Discovery. -April 1:...

P0
P15,000
P300,000
P315.000

How much is the donor's tax payable on May 31?

P300,000
P330,000
P450.000
P464,000

The next three (3) question are based or the following data: Mr. and Mrs. Mapagbigay resident citizens, made the following donations out of their con...

P0
P15,000
P30,000
P60,000

How much was the donor's tax payable of Mrs. Mapagbigay on her second donation?

P0
P12,000
P24,000
P27,000

How much was the total donor's tax payable of Mr. and Mrs. Mapagbigay on all donations

P36,000
P33,000
P65,400
P66,000

A donor gave the following donations during 2018. -Jan. 24- Land located in the Philippines valued at P2,000,000 to her uncle subject to the conditio...

P0
P75,000
P90,000
P120,000

A donor gave the following donations during 2018. -Jan. 24- Land located in the Philippines valued at P2,000,000 to her uncle subject to the conditio...

P0
P11,250
P248,750
P345,000

ABC Corporation donated P100,000 to the barangay for the purpose of cementing a barangay road where its factory is located. Statement I: The donation ...

Statements 1 & 2 are false
Statement 1 is true but statement 2 is false
Statement 1 is false but statement 2 is true
Statements 1 and 2 are true

Since a donation to a charitable Institution has a deduction without any ceiling. Statement 1. The net gift will be zero, so that in computing the do...

Statements I & 2 are false
Statement 1 is true but statement 2 is false
Statement 1 is false but statement 2 is true
Statements 1 and 2 are true

Statement 1: When a donors tax return was filed and It was found out by the B!R to have errors which gave rise to a deficiency donor's tax, the d...

Statements 1 &2 are false
Statement 1 is true but statement 2 is false
Statement 1 is false but statement 2 is true
Statements I and 2 are true

One of the following statements is wrong. When a donor with several donations during the year fails to file the donor's tax return for each of th...

Such failure shall be cured by filing a donors tax return at the end of the year reflecting all donations made within the year and paying the taxes shown in that one return.
Each failure is subject to penalties for nonfiling of return and nonpayment of the tax on time.
He can voluntarily file late the donor's tax return for each date that donations were made and make payments on the tax due shown on each return, with penalties.
If the different donor's taxes were not paid on the original due dates because of requests for extension seasonably filed with the Commissioner of Internal Revenue, each required payment of tax shall have an extended period or not more than six months.

A person making a donation is required to file a tax return to BIR at

The residence of the donee within 30 days from the date of donation.
The residence of the donor within 30 days from the date of donation.
The residence or the donor at the end of the year.
The residence of the donee at the end of month when the donation was made

Statement 1: Tax credit for donor's tax paid to a foreign country is allowed only if the donor is a citizen or resident of the Philippines. State...

Both statements are correct
Only first statement is correct
Both statements are incorrect
Only first statement incorrect

An act of liberty whereby one disposes gratuitous of a thing or right in favor of another who accepts it

Succession
Occupation
Donation
Tradition

A tax imposed on the gratuitous transfer of property between two or more person who are living at the time the transfer is made

Estate tax
Gift tax
Income tax
Transfer tax

A stranger in donor's taxation

Great grandchild
Nephew
Child by natural adoption
Grand auntie

The gift tax is imposed on the transfer of property (not on the property itself) which is why it has been sustained as a (an)

Entity theory
Property
Cone's tax Tax
Poll tax

A donation made by a stockholder to a corporation is subject to donor's tax because of the following principles, except

Entity theory
Lifeblood theory
Benefit received principle
Tax benefit rule

What is the tax implication if a corporation condones the debt of a stockholder because of a good thing done by the latter to the corporation

The condonation is based on the liberality of the corporation; therefore, it is subject to donor's tax.
The condonation is subject to donor's tax on the corporation because it is based on its liberality. Moreover, it is equivalent to a payment of dividend to the stockholder which is, therefore, subject to a dividend tax of 10%.
It is tantamount to a declaration of dividend. Therefore, it is an income which is subject to 10% dividend tax on the stockholder. However, it is not subject to donorâ€™s tax on the corporation.
It is just a simple case of extinguishment of an obligation which is neither subject to income tax on the stockholder not subject to donor's tax on the corporation.

Madz went to Bersabren Resort and was given a prize of P50,000 by the resort for being its 1,000th guest. Is the prize subject to donor's tax? In...

Yes Yes
No Yes
Yes No
No No

The following are the requisites of a donation for purposes of the donor's tax, except (RPCPA)

Capacity of the donor
Capacity of the done
Delivery of the subject
Donative intent

A donation of one (1) hectare of timberland term-12

Can be done orally or in written
Must be in writing
Maybe in private document
Must be in public document

One of the following is a valid donation

Oral donation of a cellular phone worth P4,5000
Oral donation of a passenger jeepney worth P150,000
A parcel of land worth P5,000 in private document
A parcel of land worth P500,000 in a private document

Which of the following constitutes a taxable gift? a. b. c.

Creditorâ€™s gratuitous discharge of a debtorâ€™s obligation
One day rent- free use of another's property
A gratuitous transfer by an incompetent d.
An agreement to make a future transfer which is not supported by a consideration

Antonio donated a share of stocks of Cayetano Corporation to Barandilla on April 20, 2015 with a right to revoke it. The donor delivered the property ...

April 20, 2015
April 25,2015
June 20,2015
June 30, 2015

Warren wrote a letter to Lamont on December 31, 2014 donating his car worth P350, 000. The letter was received by the latter on January 7, 2015 who ac...

December 31, 20114
January 15, 2015
January 7, 2015
May 22, 2016

On August 18, 2015 Elizabeth loaned to her sister Martha P200, 000 at an interest of 12% per annum payable one (1) year thereafter. One month before t...

P200, 000
P224,000
P220,000
None

Which of the following examples is not taxable (RPCPA)

A Filipino citizen donated a parcel of land located in the United States to B, nonresident alien.
On June 12, 2015, A made a gift of P200 ,000 to his daughter on account of her marriage celebrated may 21, 2014.
Mr. Ramos, a multi-millionaire, gives his wife a diamond ring worth P120, 000 as birthday gift.
A and B are the only heirs of C. A renounces his share of inheritance in favor of B.

Which of the following is subject to donor's tax?

Donation inter-vivos to Iglesia ni Kristo
Donation inter-vivos to International Rice Research Institute.
Cash contribution to a political candidate, duly reported on the Commission on Elections
Remission of debt where the debtor did not render service in favor of the creditor.

A tax minimization scheme which is done by spreading the gift over numerous calendar years to avail the lower tax liability

Spread-out method
Splitting gift
Donation of life insurance
Void donation

The spouses Helena and Federico wanted to donate a parcel of land to their son Dondon who is getting married in December 2014. The parcel of land has ...

The spouses should first donate in 2014 a portion of the property valued at P20, 000.00 then spread the P400,000.00 equally for 2015, 2016, 2017 and 2018.
Spread the donation over a period of 5 years by the spouses donating P100, 000 each year from 2014-2018.
The spouses should each donate a P110, 000.00 portion of the value of the property in 2014 then each should donate P100, 000.00 in 2015.
The spouses should each donate a P100, 000.00 each in 2015. Then in 2016, Helena should donate the remaining P20, 000.00.

Statement 1: When the done is exempt from income tax, the donation made by a taxable individual is also tax exempt. Statement 2: Proceeds of life i...

True False
False True
False False
True True

Statement 1: The agreement between the donor and the done that the latter shall assume the tax burden is binding on the government. Statement 2: Th...

Only the first statement is wrong.
Only the second statement is wrong.
Both statements are wrong.
Both statements are correct.

On June 23, 2015, Freddie Boy, a mentally defective 12 year old boy, executed a deed donating to his brother Aldy a one hectare lot worth P250,000 loc...

Void, because Freddie Boy does not own the property considering that the donation made to him by his father is void.
Void, because Freddie Boy, the donor is minor and mentally defective.
Valid, although enforceable.
Valid, although voidable because the donor is not capacitated to donate property.

Which of the following donations is subject to donor's tax?

Those made between persons who were guilty of adultery or concubinage at the time of the donation.
Those made to conceived and unborn children.
Those made to a public officer by reason of his office.
Those made between husband and wife during their marriage.

Antiquia donated a 1000 square meter land to Botor with a condition that within two years from the date of donation, Botor will construct a two-story ...

Statement 1 only
Both statements
Statement 2 only
Neither statements

Which of the following statements is false? The gross gift of a non-resident alien.

Will include all intangible personal properties regardless of location.
Will include all intangible personal properties situated in the Philippines.
With reciprocity will not include all intangible personal properties regardless of location.
Without reciprocity will not include all intangible personal properties situated outside the Philippines.

Which of the following is not considered as an intangible personal property within?

Franchise which must be exercised in the Philippines.
Shares of stocks issued by a domestic corporation.
Obligation or bonds issued by a foreign corporation with business situs in the Philippines.
Shares of stocks issued by a foreign corporation 51% of the business of which is located in the Philippines.

Given the following statements: I. A donation by a nonresident alien of shares of stock issued by a domestic corporation is subject to donor's...

Statements I and III
Statements II and IV
Statements III and IV
Statements I and IV

Which of the following cannot claim P10,000 exemption on gifts given on account of marriage?

Resident citizen
Nonresident citizen
Resident alien
Nonresident alien

One of the following exemptions cannot be claimed by a non-resident alien donor.

P10,000 dowries or gifts given on account of marriage of a legitimate son.
Donation to the National government, its agencies and instrumentalities or political subdivision thereof.
Donation to a non-profit educational institution not more than 30% of the gift is used for administration purposes.
The exemption of P100,000 in the tax table for donor's tax.

Categories

Donor Tax MCQs