DONOR’S TAX
True or False. If the statement is False, what makes the statement false.
1. Donative intent is still necessary when the donation is on account of a burden which is less than
value of the thing given.
False
2. Donation is an act of liberality whereby a person disposes gratuitously or a thing or right in favor or
another, who accept it.
true
3. The person who disposes of the thing right is called the donee while the one who accepts it is donor.
false
4. A donation may be inter-vivos but mortis causa in substance.
true
5. The acceptance of an immovable property may be made in the same deed of donation or in a
separate public document, but it shall not take effect unless it is done during the lifetime of the
donor.
true
6. Donor’s tax is a tax imposed on the gratuitous transfer of property between two or more persons
who are living at the time of the transfer.
True
7. Donor’s tax supplements the estate tax and compensates for the loss of income tax.
true
8. All persons who may contract and dispose of their property may make a donation.
true
9. No person may give or receive, by way of donation, more than he may give or receive by will. true
10. Donations made between persons who were guilty of adultery or concubinage at the time of
donation are void. true
11. When there is no reciprocity, the transfer of intangible personal property located in the Philippines
of a non-resident alien donor is not subject to tax. false
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12. The gross gift of a resident citizen, a non-resident citizen or a resident alien donor shall include all his
property wherever situated.
13. Where a personal property classified as capital assets is transferred for less than adequate and full
consideration in money or money’s worth, fair market value less consideration is deemed a gift.,
FALSE - ORDINARY
14. If the donor was a non-resident alien, only his property located in the Philippines shall form part of
his gross gift. TRUE
15. The inclusion of intangible personal property located in the Philippines in the gross gift of a nonresident alien donor is subject to reciprocity. TRUE
16. Intangible personal property shall not be included in the gross gift if the laws of the foreign country
of which the donor was a resident at the time of donation do not allow a similar exception from
transfer taxes or death taxes of every character in respect of intangible personal property owned by
citizens of the Philippines not residing in that foreign country. TRUE
17. If the gift is made in property, the fair market value thereof at the time of the gift shall be considered
the amount of the gift. FALSE, TIME OF ACCEPTANCE
18. If the gift consists of real property, the fair market value shall be whichever is the higher amount
between the fair market value as determined by the Commissioner, or the fair market value as
shown in the schedule of values fixed by the Provincial and City Assessors. TRUE
19. When there is reciprocity, the transfer of intangibles personal property located in the Philippines of a
non-resident alien donor is subject tax. false
20. So that the reciprocity rule may apply, the non-resident alien must be a resident and citizen of one
particular foreign country at the time of donation. Illegitimate TRUE
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