ACCOUNTING 601 Q1 MIDTERMS-DONORS TAX MARCH 3, 2017

1. The following are the requisites of a donation for purposes of S2. To be valid, donations involving intangible properties must
donors tax, except one: appear in public instrument.
a. Capacity of the donor a. Both statements are true
b. Capacity of the donee b. Both statements are false Commented [JMC1]: In a donation to a conceived child,
c. Delivery of the subject matter of gift c. S1- True; S2- False the acceptance of the child is not required by law.
d. Donative intent d. S1- False; S2- True
2. Who is not subject to the donors tax? 11. Who of the following is a stranger under the donors tax law?
a. An individual making a donation a. A child of a brother
b. A corporation making a donation b. A grandchild
c. A partnership making a donation c. A child of your 1st cousin
d. An individual who pays premiums on the life insurance of another d. Grand uncle Commented [JMC2]: Under the law, the donors tax is
3. S1. A donation inter vivos is an act of liberality where a person 12. Which of the following statements is wrong? imposed on a person making a donation. The term person
disposes gratuitously a property in favor of another who accepts it A donation by the husband and the wife out of conjugal or includes natural and artificial persons.
S2. A donation mortis causa is an act of liberality where a person community property to a brother of the wife: However, premium payments on the life insurance of
disposes gratuitously a property in favor of another who accepts it a. Is one-half a donation to a non-stranger by the wife another is not considered donation.
a. Both statements are true b. Is one-half a donation to a stranger by the husband
b. Both statements are false c. Is a donation on which the husband must pay a donors tax of
c. S1- True; S2- False 30% on his net gift
d. S1- False; S2- True d. Is a donation on which the husband must pay the graduated
4. A donation on account of marriage will give a donor a deduction donors tax on his net gift
from the gross gifts made if: 13. The following are the contents of the donors tax return, except:
a. The donee is not a stranger a. The deductions claimed and allowable
b. The donee is an adopted child b. Any previous net gifts made on the previous year
c. The donee is anybody c. Name of the done
d. None of the above d. None of the given
5. S1. The privilege to claim foreign tax credit is allowed only to 14. S1. Non-resident donors cannot claim foreign tax credit
Citizens, or residents at the time of donation S2. Corporate donors cannot be subject to the progressive
S2. Only one return is required for donations made at a single day donors tax.
even if made to several donees. a. Both statements are true
a. Both statements are true b. Both statements are false
b. Both statements are false c. S1- True; S2- False
c. S1- True; S2- False d. S1- False; S2- True
d. S1- False; S2- True 15. Computed from the date of donation, the donors tax is paid
6. S1. Obligations on the donated property which are assumed by the within
done are diminutions to the gratuity accruing to the done. Hence, a. 10 days c. 30 days
deductible to the value of the donation b. 15 days d. 60 days
S2. Gifts made to or for the use of the National Government or any 16. S1. For tax purposes, sales, exchanges and other transfers of real
entity created by any of its agencies which may or may not be properties considered as ordinary assets are considered as
conducted for profit, or to any political subdivision of the said donation.
government are exempt from donors tax. S2. Condonation or remission of debt would constitute a
a. Both statements are true donation to the extent of the fair value of the debt condoned or
b. Both statements are false remitted, if the creditor did not render a service in favor of the Commented [JMC3]: Dapat if the DEBTOR did not render
c. S1- True; S2- False debtor. a service in favor of the CREDITOR
d. S1- False; S2- True a. Both statements are true
7. S1. Donation of conjugal or community property by the spouses is b. Both statements are false
deemed made by the husband and made by the wife. Thus, the c. S1- True; S2- False
husband and the wife shall fine one donors tax return for the d. S1- False; S2- True
donation. 17. For a donation of a movable to be valid:
S2. Dowries are deductible up to a total of P10,000 so long as they a. Donation must be in writing
are made before of within one year from the celebration of b. Donation must be in public instrument
marriage. c. Donation must be oral
a. Both statements are true d. Donation may be oral or in writing
b. Both statements are false 18. Non-resident aliens are exempt from donors tax with respect to:
c. S1- True; S2- False I. Gifts made to or for the use of the national government or any
d. S1- False; S2- True entity created by any of its agencies which is not conducted for
8. S2. As a rule, donation is perfected at the point of acceptance of the profit, or to any political subdivision of the said government
donor. II. Gifts in favor of an education and/or charitable, religious,
S2. Incomplete transfers are subject to tax upon the delivery of the cultural or social welfare corporation, institution, accredited
property NGO, trust or philanthropic organization or research institution
a. Both statements are true or organization provided not more than 30% of said gifts will be
b. Both statements are false used by such done for administrative purposes.
c. S1- True; S2- False a. I only c. I and II
d. S1- False; S2- True b. II only d. Neither I nor II
9. S1. A general renunciation of inheritance occurs when an heir or the 19. Who is not a relative to the donor?
surviving spouse renounces his/her share in the hereditary estate of a. Half-brother
the decedent in favor of a particular co-heir. b. Granddaughter of the donors sister
S2. A general renunciation is a repudiation of inheritance which c. Great grandson
cannot be imputed as a donation. d. Brothers great grandchildren
a. Both statements are true 20. What is the required form in the donation of a real property?
b. Both statements are false a. Written agreement
c. S1- True; S2- False b. Public instrument
d. S1- False; S2- True c. Oral agreement
10. S1. Donation is a real contract, and is completed by the delivery d. A or B
of the property donated