1) The common characteristics of transfer taxes is that the transfer of property: Is onerous

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1) The common characteristics of transfer taxes is that the transfer of property:

1. 1. Is onerous.
   2. Takes effect during the lifetime of the transferor.
   3. takes effect upon the death of the transferor
   4. Is gratuitous

2) One of the following is not a distinction between donation inter vivos and donation mortis causa.      

                  a. Donation inter vivos takes effect during the lifetime of the grantor while donation mortis causa takes effect after the death of the grantor.

2. Donation inter vivos is subject to donor’s tax while donation mortis causa is subject to estate tax.
3. Donation inter vivos requires a public document while donation mortis causa may not require a public document
4. Donation inter vivos is valued at fair market value at the time the property is given while donation moritis causa is valued at the time of the death of the grantor.

3) Which of the following is subject to donor’s tax?

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

4) Which of the following donations inter vivo may not require that it be in writing?

1. Donation of personal (movable) property, the value of which exceeds P5,000.
2. Donation of personal (movable) property, the value of which is P5,000.
3. Donation of real (immovable) property, the value of which less than P5,000
4. Donation of real (immovable) property, the value of which exceeds P5,000

5) When is the donation perfected?

      a. the moment the donor knows of the acceptance by the done

2. the moment the thing donated is delivered either actually or constructively, to the done.
3. Upon payment of the donor’s tax
4. Upon execution of the deed of donation.

6) A non- resident citizen donor is taxed on his donation of properties.

1. Situated in the philippines only.
2. Wherever situated
3. Situated outside the Philippines only
4. Situated in the Philippines only subjectto the rule of reciprocity.

7) If a donor is a non-resident alien and the rule of reciprocity applies, which of the following pro- perties will not form part of his gross gift?

1. 1. Real properties in the Philippines
   2. Tangible personal properties within the Philippines
   3. Intangible personal properties within the Philippines
   4. All of the choices.

8) If an individual performs services for a creditor who in consideration thereof cancels the debt, the Cancellation of indebtedness may amount to a

1. Gift
2. Capital Contribution
3. Donation inter vivos
4. Payment of income

9) Cito Yu has a building located in shorthorn Quezon City currently leased to various tenants since he Is old already and wants to retire from active business, her sold the same to Janjan, his son, for

20 Million pesos. The value of the building at the time of sale is 40 million pesos. Which of the following statement is correct?

1. The sale is for sufficient consideration
2. The sale is for insufficient consideration subject to donor’s tax.
3. The sale is for insufficient consideration but exempt from donor’s tax since the object is a real property
4. The sale is subject to capital gains tax and donor’s tax.

10) Every donation or grant of gratuitous advantage, direct and indirect, between the spouses during the marriage , shall be void, except:

1. 1. Moderate gift which the spouses may give each other on the occasion of any family rejoicing
   2. Donation mortis causa
   3. Donation proter nuptias which are given before the marriage
   4. All the choices are correct exceptions.

11) Neither spouse may donate any common property without the consent of the other however, either spouse may , without the consent of the other, make moderate donations from the community property.

1. For charity
2. On occasions of family rejoicing or family distress.
   1. Neither I or II is a correct exeption
   2. Both I and II are correct exceptions
   3. Only I is a correct exception
   4. Only II is a correct exception

12) If the gift is made in properties, it shall be appraised at its:

1. Fair market value as of the time the donor’s tax return is filed
2. Fair market value as of the time of donation.
3. Historical cost at the time the donated property was acquired
4. Who of the following cannot claim P10,000 exemption on gifts given on account of marriage?

 

13) All of the folling except one are exempt from gift tax under special laws.

1. Donation to integrated Bar of the Philippines
2. Donation to Development academy of the Philippines
3. Donation to Philippines Institute of Certified Public Accountants
4. Donation to International Rice Research Institute

14) All the following, except one, are exempt from donor’s tax

1. 1. Donation of the Philippines National Red Cross
   2. Donation of the Development Academy of the Philippines
   3. Donation directly given to the victims of the typhoon Yolanda
   4. Donation of the City of Davao for public purpose

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

1. Spread out method                                 c. Splitting of gift
2. Donation of life insurance                      d. Void donation

 

16) Which of the following is a stranger for donor’s tax purposes?

1. 1. The son of the donor’s first cousin
   2. The donor’s grandmother
   3. The donor’s spouse
   4. A child born out of wedlock of parents who are legally impeded to marry each other at the time the child is being conceived

17) Which of the following is donation to stranger for donor’s tax purposes?

a. Gift to an ancestor

b. Gift to lineal descendant

c. Donation to nephew

d. Donation to a sister company

18) ABC Corporation donated P100, 000 to the barangay for the purpose of cementing a barangay road where its factory is located.

Statement 1: The donation is exempt from donor’s tax

Statement 2: The Corporation may claim full deduction for income tax purposes

a. Statement 1 and 2 are false

b. Statement 1 is true but statement 2 is false

c. Statement 1 is false but statement 2 is true

d. Statement 1 and 2 are true

 

19) Which of the following if false?

a. Donor’s tax applies also to juridical persons

b. for purposes of donor’s tax, second cousins are strangers to each other

c. Encumbrance on the property donated, if assumed by th donor is deductible for donor’s tax purposes

d. As a rule, donation between husband and wife during the marriage is void

20) Donor’s tax Credit is not allowed to a donor who is a:

a. Resident citizen

b. Non-resident citizen

c. Resident Alien

d. Non-resident alien

 

21) The Donor’s tax return shall be filed within:

a. six (6) months after the date the gift is made

b. two (2) months after the date the gift is made or completed.

c. Thirty (30) days after the date the gift is made.

d. Thirty (30) days after the date the gift is made or completed

 

22) Statement 1: A donation can be both a part of the gross gift of the donor and taxable income to the Donee.

      Statement 2: A donation may be exempt from donor’s tax but not necessarily a deduction from the donor’s gross income.

a. Only statement 1 is true

b. Only statement 2 is true

c. Both statements are true

d. Both statements are false