Chapter 13 & 14 Flashcards
(31 cards)
Identification:
refers to the amount derived after deducting allowable exemptions from the gross gift.
Net Gift
Identification:
is exempt from donor’s tax on donation received for disaster related supplies under RA 10121.
National Disaster Risk Reduction and Management Council (NDRRMC)
Identification:
is the government agency that received a donated vehicle from the US Embassy which was deemed exempt from donor’s tax.
DFA
Identification:
is the law that repealed the provision on exemption of dowries or marriage gifts from Donor’s tax.
TRAIN Law
True or False:
net gift is the basis for computing the donor’s tax
True
True or False:
Donations made to political subdivisions of the government are subject to donor’s tax
False
True or False:
The donation of a 3000sq.m. lot to San Juan City by Mr. Tan is partially exempt from Donor’s tax
False
True or False:
Donations made to NDRRMC for relief and recovery operations are exempt from donor’s tax.
True
True or False;
the TRAIN Law maintained the exemption of gift made on account of marriage up to P10,000.
False
Multiple Choice
Mr. Romero, a philanthropist, donated a 1,000 sq. meter lot to City of Parañaque to be set up as basketball/volleyball court. The lot has a Cost: ₱2 million Fair Market Value (FMV) of ₱5 million
How much must be included as part of Mr. Romero’s gross gift?
P5 million
b. P2 million
c P1 million
d. P0
How much of the gross gift is exempt?
a. P5 million
b. P2 million
c P1 million
d. P0
- Mr. Romero’s net gift is
a.P5 million
b. P2 million
c.P1 million
d. P0
- A
- A
- D
Don Pepe gave her favorite niece, Ana, a fish bond in Dagupan on which there is an unpaid mortgage of P1,500,000. The fish pond was acquired 8 years ago for P4,500,000. At the same donation, it has a fair market value ofP7,500,000. Ana agreed to assume the mortgage.
- How much must be included as part of Don Pepe’s gross gift?
a. P7,500,000
b. P6,000,000
c. P4,500,000
d. P1,500,000 - How much of the gross gift is exempt?
a. P7,500,000
b. P6,000,000
c. P4,500,000
d. P1,500,000 - Don Pepe’s net gift is
a. P7,500,000
b. P6,000,000
c. P4,500,000
d. P3,000,000
- A
- D
- B
Identification:
It refers to the tax imposed on the transfer of property by gift, whether the transfer is direct or indirect.
Donors Tax
Identification:
It is the basis for computing the donor’s tax, arrived at by deducting allowable exemptions or deductions from the gross gift.
Net Gift
Identification:
The donor’s tax is classified as this type of tax because it is levied on the act of transferring rather than on the property itself.
Excise Tax
Identification:
This is the percentage rate currently used in computing the donor’s tax under TRAIN Law.
6%
Identification:
This is the cumulative method applied in computing donor’s tax throughout a calendar year.
Calendar Year Basis
Identification:
This term refers to the total value of the property given as a gift before any deductions or exemptions.
Gross Gift
Identification:
This benefit accrues to the recipient of a gift and is used to measure the donor’s tax liability.
Net Economic Benefit
Identification:
Under donor’s tax rules, this refers to the person receiving the gift.
Donee
Identification:
Under donor’s tax rules, this refers to the person giving the gift.
Donor
Identification:
These are amounts or conditions allowed by law to reduce the gross gift for tax purposes.
Exemptions or Deductions
True or False:
Donor’s tax is levied only on direct transfers of property by gift.
False
True or False:
The donor’s tax is a tax on the property that is given as a gift.
False
True or False:
The donor’s tax applies whether the property transferred is real or personal, tangible or intangible.
True
