BUSINESS TAX – DONORS TAX - quiz
ANSWER THE FOLLOWING :
TRUE OR FALSE
1. Donors tax is a tax on the gratuitous disposition of property by a
living donor.
2. Donors tax is a property tax .
3. Donees and benefactor of donees have the primary obligation to pay
the donor’s tax.
4. The amount of donor’s tax is paid depends on the value of the
property donated .
5. Donor’s tax ia applicable to donation mortis causa made inter vivos.
6. Aliens, residents or non residents are subject to donor’s tax on
intangible personal properties located in the Philippines .
7. Resident or citizen donors are taxable on donation of any property
regardless of the location of the property.
8. Relatives encompass those who are within four degree of
consanguinity from the donor , either in the lineal or collateral line.
9. Only relatives by consanguinity are considered relatives , hence
relatives by affinity are strangers .
10.
Strangers are persons beyond the fifth degree of consanguinity
in the collateral line.
11.
There can be no relatives by juridical person donor.
12.
A business proprietor is related to his business.
13.
Donor’s tax is a local tax intended to raise money for the
government .
14.
The donor’s tax to strangers is 40% of the gross profit.
15.
The donor’s tax to relatives is determined from a schedule of
progressive tax rates .
16.
The donation of real property must be in a public instrument.
17.
The donation of intangible personal property must be made in
writing if the value do not exceed 5,000.
18.
Donors are classified into residents or citizens and non resident
aliens .
19.
Non resident aliens are subject to donor’s tax only on donation
of tangible properties located in the Philippines .
20.
The donation to a non resident alien is exempt from donor’s
tax.
11. MULTIPLE CHOICES :
1. Which is an incorrect statement ?
a. Donors tax is imposed on donation inter vivos.
b. Estate tax is imposed on donations mortis causa
c. Income tax is imposed on onerous transactions.
d. none of these .
2. Donor’s tax is not intended to
a. raise money for the government.
b. recoup government loss on future tax revenue.
c. control tax evasion of income tax.
d. provide a system of business regulation.
3. Who is the one directly liable to the payment of donor’s tax ?
a. the donor
b. the done
c. the person in possession of the property upon discovery of the donation.
d. any of these.
4. Which of these donations is subject to donor’s tax ?
a. irrevocable donation
b. transfer in contemplation of death
c. transfer under special power of appointment
d. transfer under the general power of appointment
5. Which of the following donation is not subject to donors tax ?
a. Donation intended by the donor to see his children enjoy the property
while he still lives.
b. donation intended by the donor to reward services rendered by the
donee.
c. donation intended by the donor to settle family disputes.
d. donation intended to take effect upon the death of the decedent.
6. The following donation is subject to progressive donors tax.
a. donation to a foster child.
b. donation to a recognized natural son.
c. donation to brother in law
d. donation to second cousins.
7. Statement 1
tax .
Donations to a resident or citizens are subject to donor’s
Statement 2 Donations to non resident aliens are exempt from donor’s tax
Which is correct ?
a.
b.
c.
d.
Statement 1
Statement 2
Both statements
Neither statement
8. Statement 1 Donation of non resident aliens to resident citizens are
exempt.
Statement 2 Donations of non resident aliens to non resident aliens are
exempt.
Which statement is correct ?
a.
b.
c.
d.
Statement 1
Statement 2
Both statements
Neither statement
9. Which is a relative ?
a. best friend
b. boyfriend
c. adopted daughter
d. father in law
10. Which of the following donees is a stranger ?
a. Republic of the Philippines .
b. First cousin
c. niece
d. siblings
11. Which is a correct statement?
a. Donation of tangible personal property not exceeding 5,000 can be made
orally.
b. donation of intangible personal property exceeding 5,000 may be made
in writing .
c. the donation of tangible personal property worth 5,000 or more must be
in writing .
d. the donation of real property must be in writing .
12. Which donor is subject to tax on global donation ?
a. Mexican donor, residing in Africa
b. American donor , residing in America
C. Japanese donor , residing in the Philippines .
d. Chinese donor , residing in Japan.
13. Which is taxable only on Philippine donation ?
a. Filipino residing in Jolo Sulu Philippines
b. A Filipino citizen , residing in Canada
c. An Australian citizen , residing in the Philippines .
d. An Italian citizen, residing in the United Arab emirates .
14. Which of the following donated properties of a non resident alien donor
may be exempt from donor’s tax ?
a. investment in domestic stocks
b. condominium unit
c. cars
d. none of these
15. Which is a donation made to an stranger ?
a. personal donation to a charitable entity.
b. corporate donation to an individual done.
c. coporate donation to a non profit entity.
d. all of these.