CHAPTER 13

Question 1

refers to the amount derived after deducting allowable exemptions from the gross gift.

Answer 1

Net Gift

Question 2

is exempt from donor’s tax on donation received for disaster related supplies under RA 10121.

Answer 2

National Disaster Risk Reduction and Management Council (NDRRMC)

Question 3

is the government agency that received a donated vehicle from the US Embassy which was deemed exempt from donor’s tax.

Answer 3

DFA

Question 4

is the law that repealed the provision on exemption of dowries or marriage gifts from Donor’s tax.

Answer 4

TRAIN Law

Question 5

TRUE OR FALSE

net gift is the basis for computing the donor’s tax

Answer 5

T

Question 6

TRUE OR FALSE

Donations made to political subdivisions of the government are subject to donor’s tax

Answer 6

F

Question 7

TRUE OR FALSE

The donation of a 3000sq.m. lot to San Juan City by Mr. Tan is partially exempt from Donor’s tax

Answer 7

F

Question 8

TRUE OR FALSE

Donations made to NDRRMC for relief and recovery operations are exempt from donor’s tax.

Answer 8

T

Question 9

TRUE OR FALSE

the TRAIN Law maintained the exemption of gift made on account of marriage up to P10,00.

Answer 9

F

Question 10

MCQ

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

1. How much must be included as part of Mr. Romero’s gross gift?
   a. P5 million
   b. P2 million
   c. P1 million
   d. P0
2. How much of the gross gift is exempt?
   a. P5 million
   b. P2 million
   c. P1 million
   d. P0
3. Mr. Romero’s net gift is
   a. P5 million
   b. P2 million
   c. P1 million
   d. P0

Answer 10

1. a. P5 million
2. a. P5 million
3. d. P0

Question 11

MCQ

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.

4. 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
5. How much of the gross gift is exempt?
   a. P7,500,000
   b. P6,000,000
   c. P4,500,000
   d. P1,500,000
6. Don Pepe’s net gift is
   a. P7,500,000
   b. P6,000,000
   c. P4,500,000
   d. P3,000,000

Answer 11

4. a. P7,500,000
5. d. P1,500,000
6. b. P6,000,000