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BUSINESS AND TRANSFER TAXATION 5th Edition (BY: VALENCIA & ROXAS)SUGGESTED ANSWERS
Chapter 6: DONOR’S TAX CHAPTER 6
DONOR’S TAX
Problem 6-1
1.False – there is no consideration in donation.
2.False – during the lifetime of the donor.
3.True
4.False – It is enough that the duly representative of the incapacitated donee to receive thedonation.
5.True
6.False – Real property donation must be put in writing regardless of value.
7.True
8.False – The value of donated personal property must exceed P5,000.
9.True
10.True
11.False – not gifts.1
2.False – constitutes dividend income.
13.True
Problem 6-2
1.True
2.False – If resident alien donates, he shall be subject to donor’s tax in the Philippines for hisproperties within and outside the Philippines
3.True
4.True
5.True
6.False – only one-half of the share is donated.
7.False – only if the gift is on account of marriage.
8.False – only the first P100,000 is exempt.
9.False – may be subject to business tax such as VAT, custom duties, or excise tax.
10.False - When the donee is a stranger, the tax rate is 30%.
11.True
12.False - excise tax – transfer of property by way of gift inter vivos.
Problem 6-3
1.Zero, because the renunciation is a general renunciation.
2.P30,000 or 30% of P100,000. A third cousin is a stranger for donor’s tax purposes.
3.The total amount of donor’s tax is P62,000, computed as follows:Son Daughter-in-lawRelative - P200,000 (See schedular tax table)P2,000Stranger (P200,000 x 30%)P60,000Note: Daughter-in-law is included as a relative for donor’s tax purposes.
4.Zero. Donations between husband and wife are void and not subject to donor’s tax.5.Zero. Donations between a man and a woman living together as husband and wife are voidand not subject to donor’s tax. (Art 87, Family Code)
Chapter 6: DONOR’S TAX CHAPTER 6
DONOR’S TAX
Problem 6-1
1.False – there is no consideration in donation.
2.False – during the lifetime of the donor.
3.True
4.False – It is enough that the duly representative of the incapacitated donee to receive thedonation.
5.True
6.False – Real property donation must be put in writing regardless of value.
7.True
8.False – The value of donated personal property must exceed P5,000.
9.True
10.True
11.False – not gifts.1
2.False – constitutes dividend income.
13.True
Problem 6-2
1.True
2.False – If resident alien donates, he shall be subject to donor’s tax in the Philippines for hisproperties within and outside the Philippines
3.True
4.True
5.True
6.False – only one-half of the share is donated.
7.False – only if the gift is on account of marriage.
8.False – only the first P100,000 is exempt.
9.False – may be subject to business tax such as VAT, custom duties, or excise tax.
10.False - When the donee is a stranger, the tax rate is 30%.
11.True
12.False - excise tax – transfer of property by way of gift inter vivos.
Problem 6-3
1.Zero, because the renunciation is a general renunciation.
2.P30,000 or 30% of P100,000. A third cousin is a stranger for donor’s tax purposes.
3.The total amount of donor’s tax is P62,000, computed as follows:Son Daughter-in-lawRelative - P200,000 (See schedular tax table)P2,000Stranger (P200,000 x 30%)P60,000Note: Daughter-in-law is included as a relative for donor’s tax purposes.
4.Zero. Donations between husband and wife are void and not subject to donor’s tax.5.Zero. Donations between a man and a woman living together as husband and wife are voidand not subject to donor’s tax. (Art 87, Family Code)