CHAPTER 14 T/F

Question 1

Donor’s tax is levied only on direct transfers of property by gift.

Answer 1

Answer: FALSE

Question 2

The donor’s tax is a tax on the property that is given as a gift.

Answer 2

Answer: FALSE

Question 3

The donor’s tax applies whether the property transferred is real or personal, tangible or intangible.

Answer 3

Answer: TRUE

Question 4

The net gift is determined by subtracting exemptions or deductions from the gross gift.

Answer 4

Answer: TRUE

Question 5

The donor’s tax is computed based on the fair market value of the gift only.

Answer 5

Answer: FALSE

Question 6

Only residents of the Philippines are subject to donor’s tax.

Answer 6

Answer: FALSE

Question 7

Donor’s tax is computed for each gift transaction regardless of the calendar year.

Answer 7

Answer: FALSE

Question 8

Transfers in trust are not subject to donor’s tax.

Answer 8

Answer: FALSE

Question 9

The tax is based on the donor’s privilege to transfer property, not on the property itself.

Answer 9

Answer: TRUE

Question 10

The donor’s tax rate is fixed at 6% under the TRAIN Law.

Answer 10

Answer: TRUE