1. Donations that do not conform to legal formalities are
a. Taxable under Donor’s tax notwithstanding absence for formalities
b. Exempt from Donor’s tax
c. Subject to Estate tax
d. Subject to income tax
2. Acceptance is essential for a valid donation to be subject to donor’s tax, except transfers
a. in trust by the donor in favor of a beneficiary
b. of business interest by the donor in favor of a stranger
c. for less than adequate consideration
d. by Filipino residents to non-resident aliens
3. The donation of an immovable property shall be made
a. In writing
c. Either A or B
b. In a public instrument
d. Orally
4. Using the preceding number, acceptance by the donee may be made
a. In the same deed of donation
c. Either A or B
b. In a separate document
d. Neither A nor B
5. The donation of a movable property may be made
a. Orally
b. In writing
c. Either A or B
d. Neither A nor B
6. Using the preceding number, the donation and acceptance should be in writing if the value
of the property donated is
a. Less than P5,000 b. P5,000 or less
c. P5,000 or more
d. More than P5,000
7. A donation which takes effect upon the death of the donor
a. Donation mortis causa
b. Partakes of the nature of a testamentary disposition
c. Shall be governed by the law on succession
d. A, B and C
8. A donation which is intended by the donor to take effect during his lifetime
a. Shall be subject to donor’s tax using the tax table for donation
b. Shall be in writing if the value exceeds P5,000
c. Donation inter-vivos
d. A, B and C
9. Which is incorrect concerning donation?
a. Real property is transferred by donation only if made under a public instrument
b. Donation of intangible personal property should be in writing
c. Personal property amounting to more than P5,000 should be in writing
d. No one can be forced to accept the generosity of another
10. Which is correct regarding transfer inter-vivos involving personal properties for less than an
adequate and full consideration?
a. The whole value of the property will be included in gross gift
b. The difference in fair value and consideration is a gift subject to donor’s tax
c. The whole value of the property will be included in gross estate
d. The difference in fair value and consideration is part of gross estate
11. All elements of donor’s tax must always concur for the donation to be valid. Except
a. Acceptance
b. Delivery
c. Capacity
d. Intent
12. Donor’s tax rate is at
a. 6%
b. 30%
c. 2 – 15%
d. 5% - 20%
13. Donor’s tax applies to gifts
a. In excess of P250,000
b. In excess of P200,000
c. In excess of P100,000
d. All gift
14. Dowries valued P10,000 made on account of marriage by parents to their children is subject
to
a. Donor’s tax
b. Exemption
c. Estate tax
d. Income tax
15. Donor’s tax should be paid by the?
a. Donor
b. Donee
c. Administrator
d. Executor
16. This are considered void donations, except
a. Between husband and wife
b. Made to public officer or his/her family on account of his/her office
c. Any physician, health officer, priest who took care or extended spiritual care to the donor
during his last illness
d. Donation to an unborn child
17. Jerwin, a surviving spouse, renounced his share in the conjugal partnership
a. Renunciation is subject to donor’s tax
b. Renunciation is subject to estate tax
c. Renunciation is exempt from donor’s tax
d. Renunciation is void
18. Sonly renounced his inheritance in the estate
a. Renunciation is subject to donor’s tax
b. Renunciation is subject to estate tax
c. Renunciation is exempt from donor’s tax
d. Renunciation is void
19. Statement 1: Corporations are allowed to donate inter-vivos
Statement 2: Corporations are allowed to donate mortis-causa
a. Both are correct
c. Only 1 is correct
b. Both are incorrect
d. Only 2 is correct
20. The following transfers are taxable under donor’s tax, except?
a. Transfers made by the donor to relieve himself of the burden of management of his
properties
b. Transfers made by the donor to settle family disputes
c. Transfers made by a parent to see his children enjoy his properties while he still lives
d. Transfers under power of general appointment
21. Which is incorrect?
a. Donations of non-resident aliens involving properties located abroad to residents of the
Philippines is exempt from donor’s tax
b. Renunciation of inheritance by an heir to another is not subject to donor’s tax
c. Donation by a non-resident citizen to a non-resident alien is exempt from donor’s tax
d. Gifts are reckoned on an annual basis; the tax is determined for the whole gift throughout
the year; hence, a computation is made every time a donation is made
22.