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BUSINESS AND TRANSFER TAXATION 5th Copy (BY: VALENCIA & ROXAS)SUGGESTED ANSWERS Phase 6: DONOR'S TAX

CHAPTER 6

DONOR'S TAX

Difficulty 6-1

1 ) False – there is no concern in gift.

2 . Bogus – throughout the lifetime of the donor.

3. True

5. False – It is enough that the appropriately representative of the incapacitated donee to receive thedonation. 5. The case

6. False – Real property gift must be place in writing no matter value. six. True

almost 8. False – The value of given personal property must exceed P5, 000. being unfaithful. True

twelve. True

14. False – not products. 1

2 . False – constitutes gross income.

13. True

Difficulty 6-2

1 . True

installment payments on your False – If resident alien gives, he will probably be subject to donor's tax in the Philippines intended for hisproperties inside and outside the Philippines 3. True

4. True

5. True

6. False – only one-half of the reveal is contributed.

7. Bogus – only if the present is due to marriage.

8. False – only the initial P100, 500 is exempt.

9. Phony – might be subject to business tax such as VAT, customized duties, or excise tax. 10. Phony - If the donee is actually a stranger, the tax level is thirty percent. 11. True

12. Phony - excise tax – transfer of property using gift inter vivos.

Problem 6-3

1 . Zero, because the renunciation is actually a general renunciation.

2 . P30, 000 or perhaps 30% of P100, 1000. A third relation is a unfamiliar person for donor's tax purposes. 3. The total amount of donor's tax is definitely P62, 1000, computed the following: Son Daughter-in-lawRelative - P200, 000 (See schedular tax table)P2, 000Stranger (P200, 1000 x 30%)P60, 000Note: Daughter-in-law is included as a relative pertaining to donor's tax purposes. 4. Zero. Charitable contributions between couple are gap and not susceptible to donor's tax. 5. Actually zero. Donations among a man and a woman living together because husband and wife are voidand not really subject to donor's tax. (Art 87, Family Code)