CHAPTER 14 Flashcards
(20 cards)
1
Q
It refers to the tax imposed on the transfer of property by gift, whether the transfer is direct or indirect.
A
Donor’s Tax
2
Q
- It is the basis for computing the donor’s tax, arrived at by deducting allowable exemptions or deductions from the gross gift.
A
Net Gift
3
Q
- 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.
A
Excise Tax
4
Q
- This is the percentage rate currently used in computing the donor’s tax under TRAIN Law.
A
6%
5
Q
- This is the cumulative method applied in computing donor’s tax throughout a calendar year.
A
Calendar Year Basis
6
Q
- This term refers to the total value of the property given as a gift before any deductions or exemptions.
A
Gross Gift
7
Q
- This benefit accrues to the recipient of a gift and is used to measure the donor’s tax liability.
A
Net Economic Benefit
8
Q
- Under donor’s tax rules, this refers to the person receiving the gift.
A
Donee
9
Q
- Under donor’s tax rules, this refers to the person giving the gift.
A
Donor
10
Q
- These are amounts or conditions allowed by law to reduce the gross gift for tax purposes.
A
Exemptions or Deductions
11
Q
TRUE OR FALSE
- Donor’s tax is levied only on direct transfers of property by gift.
A
F
12
Q
TRUE OR FALSE
- The donor’s tax is a tax on the property that is given as a gift.
A
F
13
Q
TRUE OR FALSE
- The donor’s tax applies whether the property transferred is real or personal, tangible or intangible.
A
T
14
Q
TRUE OR FALSE
- The net gift is determined by subtracting exemptions or deductions from the gross gift.
A
T
15
Q
TRUE OR FALSE
- The donor’s tax is computed based on the fair market value of the gift only.
A
F
16
Q
TRUE OR FALSE
- Only residents of the Philippines are subject to donor’s tax.
A
F
17
Q
TRUE OR FALSE
- Donor’s tax is computed for each gift transaction regardless of the calendar year.
A
F
18
Q
TRUE OR FALSE
- Transfers in trust are not subject to donor’s tax.
A
F
19
Q
TRUE OR FALSE
- The tax is based on the donor’s privilege to transfer property, not on the property itself.
A
T
20
Q
TRUE OR FALSE
- The donor’s tax rate is fixed at 6% under the TRAIN Law.
A
T
