CHAPTER 14 IDENTIFICATION

Question 1

It refers to the tax imposed on the transfer of property by gift, whether the transfer is direct or indirect.

Answer 1

Answer: Donor’s Tax

Question 2

It is the basis for computing the donor’s tax, arrived at by deducting allowable exemptions or deductions from the gross gift.

Answer 2

Answer: Net Gift

Question 3

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.

Answer 3

Answer: Excise Tax

Question 4

This is the percentage rate currently used in computing the donor’s tax under TRAIN Law.

Answer 4

Answer: 6%

Question 5

This is the cumulative method applied in computing donor’s tax throughout a calendar year.

Answer 5

Answer: Calendar Year Basis

Question 6

This term refers to the total value of the property given as a gift before any deductions or exemptions.

Answer 6

Answer: Gross Gift

Question 7

This benefit accrues to the recipient of a gift and is used to measure the donor’s tax liability.

Answer 7

Answer: Net Economic Benefit

Question 8

Under donor’s tax rules, this refers to the person receiving the gift.

Answer 8

Answer: Donee

Question 9

Under donor’s tax rules, this refers to the person giving the gift.

Answer 9

Answer: Donor

Question 10

These are amounts or conditions allowed by law to reduce the gross gift for tax purposes.

Answer 10

Answer: Exemptions or Deductions