CA51015 - BUSINESS TAXATION

DEPARTMENTAL EXAMINATIONS

QUIZ 1: Gross Estate

QUIZ 2: Allowable Deductions and Property Regimes
THEORETICAL QUESTIONS
MULTIPLE CHOICE PROBLEM SOLVING
QUIZ 3: Donor’s Tax
 CA51015 - BUSINESS TAXATION
QUIZ 1: Gross Estate

THEORETICAL QUESTIONS

1. Proceeds of life insurance includible in the taxable gross estate

a. Insurance proceeds from SSS or GSIS
b. Amount receivable by any beneficiary irrevocable, designated in the policy by the
insured
c. Amount receivable by any beneficiary designated in the insurance policy
d. Proceeds of group insurance taken out by a company for its employees.
e. None of the above

2. If the decedent created an holographic will, this means that successional rights are
a. Testamentary
b. Intestate
c. Mixed
d. Escheat
e. Answer not given

3. If the decedent created an autoptic will, this means that successional rights are
a. Testamentary
b. Intestate - An autoptic will is a video will. In Philippine jurisdiction, it is not a
valid mode of creating a will. Since the will is void, intestate sucession will ensue.
c. Mixed
d. Escheat
e. Answer not given

4. ______________ is that part of the testator's property which he cannot dispose of

because the law has reserved it for certain heirs who are called compulsory heirs.
a. Legends
b. Levities
c. Legitimes
d. Legacies
e. Answer not given
5. For gross estate of the NRA, what is intangible deemed located in the Philippines
a. Contract rights in a foreign country executed in Philippine formal requirements
b. Shares of stocks issued by a Non-Resident Foreign Corporation
c. Bonds listed in Foreign Stock Exchanges
d. Trademarks registered under World Intellectual Property Office (WIPO)
e. Single proprietorship registered under DTI
6. The juridical nature of succession, from the standpoint of heir receiving the property,
it is a mode of _____________. That is why an inheritance tax may be imposed on
such privilege.
a. Acquisition
b. Transmission
c. A and B
d. Not A and B
e. Answer not given

7. Which of the following could legally effect transfer of properties through succession?
a. A or B in combination thereof
b. By operation of law
c. By virtue of a will
d. A and B
e. Answer not given

8. Statement I. Cash deposits maybe subject to withdrawal to the maximum amount of

P20,000 until estate tax returns have been filed.

Statement II. Cash deposits subject of a 6% final withholding estate taxes are still included
as part of gross estate. The estate may use the withholding estate tax as credit to estate tax
due.
a. True, True
b. True, False
c. False, True
d. False, False
e. Not enough info

9. Amounts receivable by the estate of the deceased, his executor or administrator as

an insurance under policy taken by the decedent upon his own life is:
a. Excluded from the gross estate
b. Part of the gross estate whether the beneficiary is revocable or irrevocable
c. Part of the gross estate if the beneficiary is revocable
d. Part of the gross estate if the beneficiary is irrevocable
e. Answer not given

10. For gross estate purposes, which property is valued using the book value as the fair
market value?
a. Bonds being traded in the bond market
b. Annuity
c. Shares of stock not traded in the stock exchange
d. Usufruct
e. None of the above
11. Succession, in theory, is automatic in nature. It effectuates transfer of ownership to
the heirs subject to payment of his obligation. The purpose is to prevent the estate of
the decedent from being categorized as res nullius. It is opened
a. At the time of Probate of will
b. Thirty (30) days before death
c. At the time of death
d. Thirty (30) days after death
e. At any time, upon takeover of the heirs

12. For gross estate purposes, the following are general rules on situs. Which one is not?
a. The situs of real property is the place or country where it is situated
b. The situs of tangible personal property is the place or country where such is
actually located at the time of decedent's death.
c. The situs of intangible personal property is the place or country where
such is actually located at the time of the decedent's death.
d. The situs of intangible personal property is the domicile or residence of the
owner.
e. None of the above
Explanation : The question calls for the general rules on situs and answer that which is
not a situs rule. The answer is letter C. For intangible personal property, actual location
is not applied.

13. The reciprocity rule under Section 104, NIRC is only applicable to:
a. NRC with respect to his/her intangible properties in the Philippines
b. NRC with respect to his/her tangible properties in the Philippines
c. NRA with respect to his/her intangible properties in the Philippines
d. NRA with respect to his/her tangible properties in the Philippines
e. None of the above

14. Statement 1: A special power of appointment authorizes the donee of the power to appoint
only from among a designated class or group of persons other than himself.

Statement 2: The donee-decedent of a special power of appointment only holds the

property in trust, hence, the property shall form part of the donee-decedent's gross estate.
a. True, True
b. True, False
c. False, True
d. False, False
e. Not enough info

15. A right created by fiction of law, by virtue of which the representative is raised to the
place and the degree of the person represented, and acquires the rights which the
latter would have if he were living or if he could have inherited.
a. Right of Representation
 b. Right of Accretion
c. Right of Repudiation
d. Right of Revocation
e. Answer not given

16. Estate taxes imposition is justified on the ground of

a. principle of ability to pay and minimal sacrifice.
b. concept of Regalian Doctrine where all properties belong to the State.
c. accidental or fortuitous income theory.
d. non-imposition presupposes lost revenues for the state.
e. necessity and the State's unlimited power to tax every object within its
jurisdiction.

17. Which of the following value is not used when valuing gross estate?
a. Fair market value at the time of death
b. Fair market value at the time the estate return is filed
c. Zonal value when higher than the assessed value in case of real property
d. Book value in case of shares not traded in the stock exchange
e. None of the above

18. It is a mode of acquisition by virtue of which the property, rights and obligations to
the extent of the value of the inheritance, of a person are transmitted through his
death to another or others either by his will or by operation of law.
a. Sale
b. Succession
c. Donation
d. Acquisitive Prescription
e. Answer not given

19. The juridical nature of succession, from the standpoint of the decedent receiving the
property, it is a mode of _____________. That is why an estate tax may be imposed on
such privilege.
a. Acquisition
b. Transmission
c. A and B
d. Not A and B
e. Answer not given
BONUS - Since the question states that the decedent is the receiving the property, the
question is defective. It should be “decedent transferring the property.” The juridical
nature, from the standpoint of the decedent transferring his property, is a mode of
transmission.
20. In an intestate succession, the Civil Code provided the heirs who will share in the
estate left by the decedent. The principal reason for such distribution is
a. The State has the capacity to think of how it will be distributed.
b. The Civil Code is patterned on historical background.
c. If the decedent made a will, it would been that way.
d. It is left to the discretion of the State as parens patriae.
e. Answer not given

21. In the following, who has the claim on the estate?

a. The closest associate or friend
b. Any charitable institution located in the place where the bulk of the estate is
located
c. The nearest relative beyond fifth degree
d. The government
e. Answer not given

22. It happens when two or more persons are called to the same inheritance, devise or
legacy, the part assigned to the one who renounces or cannot receive his share, or
who died before the testator, is added or incorporated to that of his co-heirs, co-
devisees, or co-legatees.
a. Right of Accretion
b. Right of Repudiation
c. Right of Representation
d. Right of Revocation
e. Answer not given

23. Gross estate of this decedent includes all real and personal property, whether
tangible or intangible, or mixed, situated in the Philippines.
a. Resident Citizen
b. Non-Resident Citizen
c. Resident Alien
d. Non-Resident Alien
e. All of the above

24. Which of the following is not regarded as a compulsory heir?

a. Legitimate parents
b. Illegitimate children
c. Surviving spouse
d. All of them
e. None of them
25. Which of the following is most likely the basis of taxing succession?
a. Privilege of acquiring properties of decedent.
b. State's right to tax everything.
c. Privilege of transferring properties thru death.
d. Properties to be transferred.
e. None of the above

26. For gross estate purposes, FMV of shares of stock in the stock exchange are
a. Book value
b. Par value
c. Appraisal value
d. Closing Price provided by the stock exchange
e. Arithmetic mean between the highest and lowest stock exchange quotation at a
date nearest the date of death
Under Par. 5, Section 5, Rev. Regs. No. 12-2018 dated 25 January 2018, on valuation
of gross estate, for shares which are listed in the stock exchanges, the fair market value
shall be the arithmetic mean between the highest and lowest quotation at a date nearest
the date of death, if none is available on the date of death itself.

Under Par. c.2.1, Section 7, Rev. Regs. No. 6-2008 dated 22 April 2008, as amended by
Rev. Regs. 6-2013 dated 11 April 2013, the fair market value of the shares of stocks
sold shall be, in the case of listed shares which were sold, transferred, or exchanged
outside of the trading system and/or facilities of the Local Stock Exchange, the closing
price on the day when the shares are sold, transferred, or exchanged.

If you will see the highlighted portion of Section 5, RR 12-2018 above, arithmetic mean
is only used when none is available on the date of death itself. So the valuation
should be at the date of death first. Under Section 7, RR 6-2008 quoted above, the
valuation is closing price on the day when the shares are, in this case, transferred
at the time of death.

27. Gross estate does not include one of the following:

a. Tangible personal property
b. Transfers under the general power of appointment
c. Revocable transfers
d. Intangible personal property located in the Philippines of a non-resident
not citizen of the Philippines where there is reciprocity.
e. None of the above

28. When is hereditary property deemed transferred to the heir?

a. After the burial of the decedent
b. After the estate tax is paid on the inheritance
c. At the time of writing the will
d. At the moment of death of decedent
 e. At the discretion of the decedent or his estate

29. Which of the following transfer is not included in the gross estate?
a. Transfer with reservation of certain rights
b. Transfer for a penny
c. Transfer for an adequate consideration in money worth
d. Transfer in contemplation of death
e. None of the above

30. Which of the following is not included in the gross estate?

a. Revocable transfer where the consideration is not sufficient
b. Revocable transfer where the power of revocation was not exercised
c. Transfer passing under general power of appointment
d. Transfer for sufficient consideration even if it is a death transfer
e. None of the above
Explanation : Answer is letter D. The first three are included in the gross estate. What
is not included in the gross estate is a transfer for sufficient consideration during the
lifetime of the decedent. Even if it is a death transfer or a transfer in contemplation of
death, if it is accompanied by a sufficient consideration, it is not part of the gross estate
because the consideration makes it a legitimate transfer.

31. Transfer of property may be subject to

a. Capital gains taxes
b. Value-added taxes
c. Transfer taxes
d. All of the above
e. None of the above

32. Which of the following is excluded from gross estate?

a. Bank deposit of a non-resident alien decedent, with reciprocity
b. Bequests to the Development Academy of the Philippines
c. Transfer where there is merger of the usufruct in the owner of the naked title
d. All of these
e. None of these
Explanation : Bank deposits are not intangible properties.
33. Testamentary succession is a mechanism created under the law so that a person may
leave all his earthly possession at his own discretion.
a. Yes. Under the Civil Code, a will can be made to designate who will succeed the
testator.
b. Yes. In a civil law jurisdiction, a person has the absolute right to dispose of one's
property, either during his lifetime or to take effect upon death.
c. No. The discretion to transfer property to take effect upon death is limited.
d. No. The right to leave one's properties is subject to legitime rules and
compulsory heirs.
e. Answer not given.

34. Which is not true about transfer in contemplation of death?

a. In transfer in contemplation of death, death must be imminent.
b. Transfer in contemplation of death partakes of the nature of testamentary
disposition.
c. Transfer in contemplation of death is governed by the rules on succession.
d. In transfer in contemplation of death, the thought of death is the motivating factor
for transfer.
e. Answer not given.
Explanation : Imminent is not a requirement of transfer in contemplation of death. It is
not in the provision. Otherwise, the window for the application of the law will only be for
a person who is at the point of death, which the provision does not envision.

35. Which of the following statements is not true?

a. A general power of appointment authorizes the donee of the power to appoint
any person to possess or enjoy the property.
b. A general power of appointment makes the donee of the power the owner of the
property.
c. A power of appointment is not always general.
d. The appointed property passing under a general power of appointment is
not includible in the gross estate of the donee-decedent.
e. None of the above

36. Which of the following is subject to the rule of reciprocity, for gross estate purposes?
a. Car in the Philippines owned by a NRA decedent
b. Investment in stock in a US Corporation owned by a NRA decedent
c. Investment in bonds in a US Corporation that has acquired business situs in the
Philippines, and owned by a resident alien decedent
d. Shares owned by a NRA decedent in a partnership established in the
Philippines.
e. None of the above
37. Estate tax is imposed upon the
a. Property or rights transferred.
b. Decedent.
c. Right to transfer properties.
d. Privilege to receive inheritance.
e. Successional right given by the State.

38. When there is legitimate child under testamentary succession, the share of the
surviving legitimate spouse would be?
a. Equal to the share of each child
b. One-half of the hereditary estate
c. One-third of the hereditary estate
d. One-fourth of the hereditary estate
e. Answer not given

39. For gross estate purposes, shares are not deemed property within the Philippines
when
a. The shares are issued by a domestic corporation.
b. The shares are issued by a foreign corporation with no business situs in
the Philippines.
c. The shares are issued by a foreign corporation with 85% business in the
Philippines.
d. The shares are issued by a corporation organized under Philippine laws.
e. None of the above

40. In a testamentary succession, the following are compulsory heirs except

a. Legitimate children and descendants.
b. The widow or widower.
c. Recognized illegitimate children.
d. Brothers and Sisters.
e. Answer not given.

A decedent left a piece of land.

The following data were available in connection with the property:
(a) Assessed valued, six (6) months before death, P500,000
(b) Zonal value, time of death, P3,000,000
(c) Fair market value, time of filing estate tax return, P4,000,000.

41. What would be the value of the piece of land in the gross estate?
a. P 500,000
b. P 3,000,000
c. P 4,000,000
d. Independent Appraiser’s Valuation
e. It cannot be determined
The decedent is a resident citizen who died in 2018.
Part of his gross estate:
(a) house and lot (family home) in Pasay City valued at the time of death at P2,665,000
(b) mortgaged to the BPI as an Accommodation Loan for his friend A. P 400,000

At the time of the mortgage, the fair market value of the property is P3,000,000.

42. What is the amount of property to be included in the gross estate?

a. 2,665,000
b. 2,265,000
c. 3,065,000
d. 3,000,000

Explanation : P2,665,000 + P400,000 = P3,065,000

An accommodation loan means that the decedent is not the debtor. That is, under Civil
law, considered a receivable from the actual debtor. Accordingly, gross estate will
include not only the FMV of the house and lot at P2,665,000 but as well as the P400,000
as receivable from the accommodated friend.

Side note: I did not ask for deductions. I asked for gross estate.

For Numbers 43 - 44
Antonia Santos, 30 years old, gainfully employed, is the sister of Edgardo Santos. She died
in an airplane crash. Edgardo is a lawyer and he negotiated with the airline company and
insurance company and they were able to agree to a total settlement of P10M. This is what
Antonia would have earned as somebody who was gainfully employed.

Edgardo was her only heir.

43. Is the P10 Million subject to estate tax?
a. Yes. The settlement retroacts to the date of death.
b. Yes. By analogy to life insurance, compensation received by the estate is gross
estate.
c. No. This is compensation arising from the death of the decedent.
d. No. It came after the death of the decedent.
e. Not enough info.
Explanation : Best answer is that the amount received is compensation arising from the
death of the decedent as it is referring to exclusions from gross income and therefore,
excluded from gross estate. When you use the reason “it came after the death of the
decedent,” you are just stating the obvious without legal reasoning.
44. Should Edgardo report the P10 Million as his income or subject it to estate taxes
being Antonia's only heir?
a. Income of Edgardo subject to income taxes
b. Income of Estate subject to income taxes
c. Estate taxes
d. Exempt
e. Not enough data

For Numbers 45 - 47
The heirs of M request advice relative to a property valued at P3M that was transferred by
their father before his death in order to arrest any imposition of estate taxes. This property
was transferred to one of their sister (in trust for all of his children) but its income were given
to their father as installment payment in the amount of P50,000 per month. At the time of his
death, the property was valued at P12M and the accumulated amount of instalment
payment is P3.25M.
45. What kind of transfer did the father do?
a. Transfer in Contemplation of Death
b. Transfer for Insufficient Consideration
c. Legitimate Transfer
d. A and B
e. None of the above
46. Is the accumulated installment payment considered a consideration for gross estate
tax purposes?
a. Yes. Transfers for Insufficient Consideration includes money or money's
worth.
b. Yes. The payment was made as a condition for the transfer.
c. No. Transfers for Insufficient Consideration requires the consideration be made
at the time of the transfer.
d. No. The accumulated payments are only factors to determine of the transfer is in
contemplation of death.
e. No. Estate Tax Law requires that a consideration be made bona fide.

47. How much is included as part of gross estate?

a. P 12,000,000
b. P 9,000,000
c. P 8,750,000
d. P 0
Explanation : P12,000,000 – P3,250,000 = P8,750,000
This is a variation of the transfer for insufficient consideration. At the time that the
transfer occurred, there was a negotiated deal to pay for installment. There is a
consideration but it is on installment. Thus, at the time of the transfer, there was no
consideration but gradual payment. So at that time, it is considered a transfer in
contemplation of death. But the accumulation of payment from the time of transfer till
 death cannot be ignored. Accordingly, the FMV at the time of death shall be considered
and reduced by the total amount of installment.

For Numbers 48 - 50
A Filipino OFW died in Syria leaving the following properties:
(a) House and Lot in Syria, P1,000,000;
(b) Vacant Lot in Manila, P2,000,000;
(c) Shares of stock in a domestic corp., 60% of the business
is located in the Philippines, P100,000;
(d) Shares of stock in a foreign corp., 70% of the business
is located in the Philippines, P200,000;
(e) Car in Manila , P500,000.
48. How much is the gross estate, assuming the decedent is a non-resident alien:
a. 3,800,000
b. 2,600,000
c. 2,500,000
d. 2,000,000
e. Answer not given

Vacant Lot in Manila, P2,000,000;

Shares of stock in a domestic corp., 60% of the business is located in the Philippines,
P100,000;
Car in Manila , P500,000.

49. How much is the gross estate, assuming the decedent is a non-resident alien and the rule
of reciprocity applies:
a. 3,800,000
b. 2,600,000
c. 2,500,000
d. 2,000,000
e. Answer not given

Vacant Lot in Manila, P2,000,000;

Car in Manila , P500,000.

50. How much is the gross estate?

a. 3,800,000
b. 2,600,000
c. 2,500,000
d. 2,000,000
e. Answer not given

*All are included because he is a non-resident citizen

 CA51015 - BUSINESS TAXATION
QUIZ 2: Allowable Deductions and Property Regimes

THEORETICAL QUESTIONS

1. Conjugal Partnership of Gains.

Statement I. Property acquired by gratuitous title during the marriage maybe considered
conjugal.
Statement II. Income realized during the marriage on property brought to the marriage is
always conjugal in nature.
True, True
True, False
False, True
False, False

2. Absolute Community of Property.

Statement I. Property acquired by gratuitous title during the marriage maybe considered
community.
Statement II. Income during the marriage on property acquired before the marriage is
always community in nature.
True, True
True, False
False, True
False, False

3. Conjugal Partnership of Gains.

Statement I. Property brought to the marriage is considered conjugal in nature.
Statement II. Income realized during the marriage on property brought to the marriage is
exclusive in nature.
True, True
True, False
False, True
False, False

4. Conjugal Partnership of Gains.

Statement I. Jewelries are conjugal in nature.
Statement II. Property for exclusive use of each spouse may either be conjugal or
exclusive.
True, True
True, False
False, True
False, False
5. Absolute Community of Property.
Statement I. Property brought to the marriage is considered community in nature, in
general.
Statement II. As a rule, income realized during the marriage on property acquired before
the marriage is exclusive in nature.
True, True
True, False
False, True
False, False

6. ACP v. CPG
Statement I. If jewelries are acquired by gratuitous title where the transferor did not specify
that it is community, it will be considered exclusive.
Statement II. In both property regimes, the presumption of law is always
COMMUNITY/CONJUGAL if acquired during the marriage unless there is evidence to the
contrary.
True, True
True, False
False, True
False, False

7. Property Regimes. NRA.

Statement I. Assuming this is his only property, it is better for the heirs to withdraw the
amount of P500,000 in cash in the bank left behind by the non-resident alien than to
undergo estate tax proceedings.
Statement II. A non-resident alien is not allowed any special deductions.
True, True
True, False
False, True
False, False

8. Property Regimes. NRA.

Statement I. All ordinary deductions are deductible for a non-resident alien who is married
without any limitation, provided all the elements provided in the Tax Code are present.
Statement II. Standard deductions, for a non-resident alien who is married, is conditional on
the declaration of properties outside the Philippines.
True, True
True, False
False, True
False, False
9. Property Regimes. NRA.
Statement I. The ratio of Philippine properties over World properties is not needed in the
computation of estate taxes for a non-resident alien who is married.
Statement II. Family home is not deductible for a non-resident alien who is married.
True, True
True, False
False, True
False, False

10. Property Regimes. NRA.

Statement I. There is no need to account for the property of the non-resident alien outside
the Philippines.
Statement II. For purposes of estate taxes, we will assume that the property regime of the
non-resident alien is absolute community of property, unless otherwise proven.
True, True
True, False
False, True
False, False

11. Property Regimes. NRA.

Statement I. A non-resident alien is usually govern by a complete separation of property if
he is married to a Filipino.
Statement II. Non-resident alien who is married is not allowed to deduct amounts received
under Rep. Act No. 4917.
True, True
True, False
False, True
False, False

12. Deductions to Gross Estate.

Statement I. All accounts payable of the estate are allowable deduction provided it is filed
before the executor for payment.
Statement II. Accounts payable must always be notarized, to be deductible from gross
estate.
True, True
True, False
False, True
False, False
13. Deductions to Gross Estate.
Statement I. There is deduction by inference.
Statement II. No other charges shall affect the gross estate other than what has been
expressly provided by law, except by judicial legislation.
True, True
True, False
False, True
False, False

14. Deductions to Gross Estate.

Statement I. Obligations of the estate must be accompanied by a statement of proceeds of
loan.
Statement II. Obligations of the estate are always debt instruments.
True, True
True, False
False, True
False, False

15. Deductions to Gross Estate.

Statement I. Allowable deductions for estate tax are charges upon properties of the
Decedent in the Gross Estate.
Statement II. Deductions are in the nature of exemptions and must be construed liberally in
favor of the government and strictly against the taxpayer.
True, True
True, False
False, True
False, False

16. Deductions from Gross Estate.

Statement I. Claims against insolvent persons need not be included in the Gross estate so
long as the debtor is insolvent provided no deduction will also be availed of.
Statement II. Only that part of the claims against insolvent persons that is uncollectible must
be included in the gross estate of the Decedent.
True, True
True, False
False, True
False, False
Note: the should be included in the Gross Estate for statement 1 is the receivable
17. Deductions from Gross Estate.
Statement I. Property previously taxed as a deduction is allowed by law to help the estate
recover from estate tax burden untimely imposed.
Statement II. It is termed a vanishing deduction because the further the death of the present
decedent is from the prior transfer, the allowed deduction becomes lower.
True, True
True, False
False, True
False, False

18. Deductions from Gross Estate.

Statement I. Unpaid mortgage is a claim against the estate.
Statement II. Unpaid mortgage cannot be availed of as a deduction if it is merely an
accommodation loan.
True, True
True, False
False, True
False, False

19. Deductions from Gross Estate.

Statement I. Losses on property due to pandemic (if all other elements are present) are
deductible from the gross estate.
Statement II. Losses on property due to estafa (if all other elements are present), are
deductible from gross estate.
True, True
True, False
False, True
False, False

20. What is the gross estate of a Married Decedent under the Absolute Community of
Property?
Exclusive properties of the Decedent
Total Community property of the Spouses
A and B
Not A and B

21. The property relationship between husband and wife shall be governed by
By marriage settlements executed before the marriage
By the provisions of Family Code
By the local custom
All of the above
22. In the absence of pre-nuptial agreement, this property regime will apply for marriages
contracted before 3 August 1988.
System of Absolute Community of Property
System of Conjugal Partnership of Gains
Complete Separation of Property
Property regime of unions without Marriage

23. This is a deductible tax on gross estate -

Any business taxes imposed after the death of the decedent
Transfer taxes not accrued before his death
Any foreign estate tax
All of the above
None of the above

24. In the absence of pre-nuptial agreement, this property regime will apply.
System of Absolute Community of Property
System of Conjugal Partnership of Gains
Complete Separation of Property
Property regime of unions without Marriage
 MULTIPLE CHOICE PROBLEM SOLVING

25. In February 2021, Mr. DB, a resident citizen, was diagnosed with an aggressive lung cancer.
Not accepting the diagnosis, he asked for a second opinion and tried all kinds of therapeutic
medicine and alternative medicine, racking up medical expenses up to P1,200,000. But he
still succumbed to the original diagnosis. At the time of his death, of the P1,200,000,
P650,000 still remain unpaid. For estate tax purposes, how much medical expenses can
the executor claim as allowable deduction?
a. P0, because this deduction has been repealed by Rep. Act No. 10963.
b. P500,000 only.
c. P650,000 as claims against the estate as it is unpaid at the time of his
death.
d. P1,200,000 as funeral expenses of the estate of Mr. BZ.
e. Answer not given.

26. In January 2021, Mr. BZ, a resident citizen, was diagnosed with an aggressive pancreatic
cancer. In order to prepare for his eventual death, he consulted a lawyer and began the
settlement of his estate valued at over P12,500,000 and applied for probate. At the time of
his death, legal fees incurred where P275,000. Of that amount, P180,000 remain unpaid.
For estate tax purposes, how much legal fees can the executor claim as allowable
deduction?
a. P0, because this deduction has been repealed by Rep. Act No. 10963.
b. P180,000 as claims against the estate as it is unpaid at the time of his
death.
c. P180,000 or 5% of the Gross Estate, whichever is lower.
d. P275,000 as judicial expenses of the estate of Mr. BZ.
e. Answer not given.

27. In February 2021, Mr. CA, a resident citizen, was diagnosed with an aggressive colon
cancer. In order to prepare for his eventual death, he engaged the services of St. Peter's
Columbary at Araneta Ave., Quezon City and picked up a nice rental coffin, urn and
columbary deck at Level II of the building, inclusive of wake period, place and
complementary water, coffee and iced tea, ushers and crying ladies. The cost of the
package will be P450,000. At the time of his funeral, P220,000 remain unpaid. For estate
tax purposes, how much funeral costs can the executor claim as allowable
deduction?
a. P0, because this deduction has been repealed by Rep. Act No. 10963.
b. P200,000 only.
c. P220,000 as claims against the estate as it remains unpaid at his funeral.
d. P450,000 as funeral expenses of the estate of Mr. BZ.
e. Answer not given.
Even though funeral expenses is unpaid it is expenses after death and not allowed as
deduction
For numbers 28 - 29
Mr. BW was dead at the age of 24 in January 2021. He died because of cardiac arrest due
to complications of a lot of diseases. At the time of his death, he had a house and lot valued
at P3,500,000 and an accommodation loan for his brother in the amount of P250,000 using
the house and lot as a security under a real estate mortgage.

28. What is the amount of unpaid mortgage deductible if the decedent is a non-resident
citizen?
a. P0
b. P250,000
c. Recognize the House & Lot in the gross estate net of P250,000.
d. Answer not given

29. What is the amount of property to be included in the gross estate if the decedent is a
non-resident citizen?
a. P0
b. P3,250,000
c. P3,500,000
d. P3,750,000
250,000 is a receivable from the accommodated friend thus to be included in the gross
estate and can be claimed as a deduction

For numbers 30 - 34
Decedent Mr. UA died on February 2021. He is unmarried head of the family and a non-
resident alien with the following information:
(a) Real properties, P5,000,000;
(b) Personal Properties, P5,000,000;
(c) Family home, P5,750,000;
(d) Funeral expenses incurred after the death of the decedent, P150,000;
(e) Medical expenses incurred and paid before the death of the decedent, P500,000;
(f) Unpaid chatter mortgage, P250,000;
(g)Real property taxes unpaid, P120,000.
Assuming that the properties provided in this problem are all situated in the Philippines and
is equivalent to 50% of the total estate left behind by the decedent,

30. what is gross estate?

a. P0
b. P5,000,000
c. P10,000,000
d. P15,750,000
Real Properties 5,000,000
Personal Properties 5,000,000
Family Home 5,750,000
GROSS ESTATE, PH 15,750,000
31. what is the total ordinary deductions?
a. P185,000
b. P370,000
c. P510,000
d. P1,020,000
Unpaid Chatter Mortgage 250,000
Real property Taxes Unpaid 120,000
Ordinary Deductions subject to Ratio 370,000
Multiplied by Gross Estate Ratio x 50%
Ordinary Deductions - NRA 185,000

32. what is the total special deductions?

a. P0
b. P500,000
c. P5,000,000
d. P10,750,000
Special Deductions to NRA 500,000

33. what is the total deductions?

a. P510,000
b. P685,000
c. P11,260,000
d. P15,240,000
Ordinary Deductions 185,000
Special Deductions 500,000
Total Deductions 685,000

34. what is the estate taxes due?

a. P269,400
b. P903,900
c. P645,000
d. P914,400
Gross Estate, PH 15,750,000
Less: Total Deductions (685,000)
Net Taxable Estate 15,065,000
Multiplied by: Estate Tax rate x 6%
Estate Taxes Due 903,000

For numbers 35 - 39
Mr. GB is married, and a resident citizen, with the following information:
(a) Real Properties (donated to Decedent during the marriage), P4,000,000;
(b) Personal Properties (inherited during the marriage), P3,725,000;
(c) Family Home (Conjugal), P25,000,000;
 (d) Shares of Stocks (Conjugal), P2,785,000;
(e) Shares of Stocks (exclusive of the surviving spouse), P1,750,000;
(f) Funeral expenses at P450,000;
(g) Medical expenses before death, P1,500,000;
(h) Unpaid mortgage on Family Home at P3,500,000;
(i) Real property taxes unpaid on exclusive property of Decedent at P1,200,000.

35. Compute the gross estate.

a. P0
b. P7,725,000
c. P27,785,000
d. P35,510,000
e. P37,260,000
Exclusive Conjugal TOTAL
Real Properties 4,000,000
Personal Properties 3,725,000
Family Home 25,000,000
Shares of Stocks (Conjugal) 1 1 2,785,000
Total Gross Estate 7,725,000 27,785,000 35,510,000

36. Compute the total ordinary deductions.

a. P0
b. P1,200,000
c. P3,500,000
d. P4,700,000
e. P6,650,000
Exclusive Conjugal TOTAL
Unpaid Mortgage, FM 3,500,000
Unpaid property taxes exclusive 1,200,000 1 1
Total Ordinary Deductions 1,200,000 3,500,000 4,700,000

37. Compute the total special deductions.

a. P0
b. P5,000,000
c. P10,000,000
d. P15,000,000
e. Answer not given

Family Home (Limit 10,000,000) 10,000,000

Standard Deduction 5,000,000
Total Special Deductions 15,000,000
Note: Since family home 25,000,000/2 is 12,500,000 which is greater than 10,000,000 limit
the deduction is 10,000,000 max
38. Compute the net taxable estate.
a. P0
b. P405,000
c. P3,667,500
d. P4,542,500
e. P4,267,500
Exclusive Conjugal Total
Total Gross Estate 7,725,000 27,785,000 35,510,000
Less:Total Ordinary Deductions 1,200,000 (3,500,000) (4,700,000)
Net Estate Conjugal 24,285,000
Less: Total Special Deductions (15,000,000)
Net Estate 15,810,000
Less: SSS (24,285,000 / 2) (12,142,500)
Net Taxable Estate 3,667,500

39. Compute the net taxable estate.

a. P0
b. P24,300
c. P220,050
d. P256,050
e. P273,550
*The question should be Estate Tax Due therefore:
Net Taxable Estate 3,667,500
Multiplied by Estate Tax Rate x 6%
Estate Tax Due 220,050

For numbers 40 - 41
Mr. AV died in 2020 when he was diagnosed with coronavirus due to respiratory
complications. He left a house and lot in Pasig City valued at P12M at the time of
acquisition, with a real estate mortgage of P8M. At the time of his death, only P2M was left
unpaid for the property valued P7M.

40. What is the amount of deduction for unpaid mortgage if the decedent is a resident
alien?
a. P0
b. P2M
c. P8M
d. Answer not given.

41. What is the amount of property to be included in the gross estate if the decedent is a
resident alien?
a. P0
b. P5M
c. P7M
 d. P10M
e. P12M

For numbers 42 - 43
Mr. AV died in 2020 when he was diagnosed with coronavirus due to respiratory
complications. He left a house and lot in Pasig City valued at P12M at the time of
acquisition, with a real estate mortgage of P8M. At the time of his death, only P2M was left
unpaid for the property valued P7M. But the bank that loaned the decedent the amount also
applied for a life insurance to secure the unpaid mortgage. In the event of his death, the
unpaid mortgage is considered paid and the Insurance company will pay the unpaid portion
of the mortgage.

42. What is the amount of unpaid mortgage deductible if the decedent is a resident alien?
a. P0
b. P2M
c. P8M
d. Answer not given.
Note: Since 2M is still unpaid it can be claimed as deductible

43. What is the amount of property to be included in the gross estate if the decedent is a
resident alien?
a. P5M
b. P7M
c. P9M
d. P10M
e. P12M
Property Value 7,000,000
Insurance Claim 2,000,000
Gross Estate 9,000,000
Note: Since there is an insurance claim of 2,000,000 it should be included in the gross estate
For numbers 44 - 45
The estate is valued at P12M with properties located in the Philippines at P7.5M. Claims
against the Estate totaling P450,000 included the following items:
(a) Debt instruments in a private document incurred 5 years prior to
the death of the decedent without a statement of proceeds of loan
in the amount of P45,000;
(b) Obligations not paid 11 years ago at P78,000;
(c) Debt Claims in a private document incurred 3 years prior to the
death of the decedent with statement of proceeds of loans at P34,000.

44. What is claims against the estate, for estate tax purposes if the decedent is a non-
resident alien?
a. P183,125
b. P281,250
c. P293,000
d. P450,000
Claims Against the estate 450,000
Less: Items that should not be included as deduction
(a)3years debt >, and no statement of proceeds of loan (45,000)
(b)Obligations not paid 11 years ago, prescribed already(78,000)
(c)Should be public document (34,000)
Adjusted Claims Against the Estate or Ordinary Deduc. 293,000
Multiplied by Gross Estate Ratio (7.5M/12M) x 0.625
Claims Against the Estate - Adjusted 183,125

45. What is claims against the estate, for estate tax purposes if the decedent is a non-
resident citizen?
a. P183,125
b. P281,250
c. P293,000
d. P450,000
Claims Against the estate 450,000
Less: Items that should not be included as deduction
(a)3years debt >, and no statement of proceeds of loan (45,000)
(b)Obligations not paid 11 years ago, prescribed already(78,000)
(c)Should be public document (34,000)
Claims Against the Estate - Adjusted 293,000
Note: Since it is a ordinary deductions is not needed to be multiplied to GE ratio
For numbers 46 - 50.
Decedent Mr. TZ died on January 2021. He is unmarried head of the family and a resident
citizen with the following information:
(a) Real properties, P5,000,000;
(b) Personal Properties, P5,000,000;
(c) Family home, P5,750,000;
(d) Funeral expenses incurred after the death of the decedent, P150,000;
(e) Medical expenses incurred and paid before the death of the decedent, P500,000;
(f) Unpaid chatter mortgage, P250,000;
Real property taxes unpaid, P120,000.

46. Compute the gross estate.

a. P0
b. P5,000,000
c. P10,000,000
d. P15,750,000
Real Properties 5,000,000
Personal Property 5,000,000
Family Home 5,750,000
Gross Estate 15,750,000

47. Compute the total ordinary deductions.

a. P0
b. P370,000
c. P820,000
d. P1,020,000
Unpaid Chatter Mortgage 250,000
Real Property taxes unpaid 120,000
Total Ordinary Deductions 370,000

48. Compute the total special deductions.

a. P0
b. P5,000,000
c. P5,750,000
d. P10,750,000
Standard deduction 5,000,000
Family Home 5,750,000
Total Special Deductions 10,750,000
49. Compute the total deductions.
a. P5,000,000
b. P11,120,000
c. P11,770,000
d. P14,730,000
Total Ordinary Deductions 370,000
Total Special Deductions 10,750,000
Total Deductions 11,120,000

50. Compute the estate taxes due.

a. P238,800
b. P277,800
c. P645,000
d. P883,800
Gross Estate 15,750,000
Less: Total Deductions (11,120,000)
Net Estate 4,630,000
Multiplied by Estate Tax Rate x 6%
Estate Tax Due 277,800
 CA51015 - BUSINESS TAXATION
QUIZ 3: Donor’s Tax

1. One of this is a valid donation -

a. Gift of a married man to his concubine
b. Gift of a married woman to her paramour
c. Gift to a public officer by reason of his office
d. A reasonable birthday gift to a public official

2. Transfer for insufficient consideration

a. is considered a donation for the fair market value of the property.
b. is subject to donor's taxes on the whole property given.
c. is subject to donor's taxes only insofar as excess of the fair value over the
consideration given.
d. is taxable only after reduction of P250,000 on the fair market value.

3. Who has the burden of proof for donation to be considered a transfer in the ordinary
course of business?
a. Donor
b. Donee
c. Both A and B
d. Answer not given

4. Which is correct?
a. Any economic benefit an employee receives from his employer, as a general rule
is compensation income under the economic benefit rule.
b. As an exception to the economic benefit rule, if there is a discernible indication of
generosity in a given benefit from the employer to the employee, then it is not
subject to income tax.
c. Donation and Recognition of income are inconsistent with each other.
d. All of the above.

5. Unintended gifts may result in that is subject to donor's taxes -

a. Mergers
b. Consolidation
c. Tax-free exchanges
d. Sale of shares of stocks for less than its book value

6. Which is wrong? Political contributions are –

a. if utilized by the recipient, not subject to income tax.
b. if unutilized by the recipient, subject to income tax.
c. utilized or unutilized, subject to income tax if no Statement of Expenditures is
filed with the Comelec.
 d. utilized or unutilized, subject to VAT if no Statement of Expenditures is
filed with the Comelec.

7. The purpose of imposition of donor's taxes is

a. revenue.
b. to tax gratuity.
c. match the provisions of estate taxes.
d. to deter gratuitous transactions.

8. Which is correct?
a. Political contributions maybe an onerous exchange and therefore not gratuitous
in nature.
b. Political contributions may still be considered exempt from donation even before
the campaign period.
c. Political contributions is not a deductible item for income tax purposes.
d. Political contribution, if not for the provisions of the Tax Code and the Civil Code,
is considered a violation of the Anti-Graft and Corrupt Practices Act.

9. The liability to pay donor's taxes is

a. not transferable.
b. not subject to any condition.
c. just like DST, transferable to another.
d. not inconsistent with income tax imposition.

10. A transfer for less than adequate consideration is considered

a. Deemed gift.
b. Unintended consequence.
c. Sale with unintended effect.
d. None of the above.

11. A condition attached to the donation that is considered null and void.
a. suspensive condition
b. resolutory condition
c. impossible condition
d. remuneratory condition

12. Unintended gifts may result in that is subject to donor's taxes –

a. 0
b. Estate tax planning
c. Sale of real property subject to capital gains taxes
d. Buy-back of shares of stocks

13. Exempt from the provisions of "deemed gift" under Section 100 -
a. Sale in the ordinary course of business
 b. Bonafide sale at arm's length transaction
c. Sale devoid of donative intent
d. All of the above

14. When a person gives to another a thing or right on account of the latter's merits or of
the services rendered by him, provided they do not constitute a demandable debt, or
when the gift imposes upon the person a burden which is less than the value of the
thing given, what type of activity is this, for donor's tax purposes?
a. Donatio mortis causa
b. Donation inter vivos
c. Sale or exchange
d. Acquisitive Prescription

15. Donor's taxes are

a. Capitation taxes
b. Property taxes
c. Excise taxes
d. Transaction Tax

16. The assumption of mortgage

a. by the donor reduces gross gift to be reported in the donor's tax return.
b. by the donee reduces gross gift to be reported in the donor's tax return.
c. affects the computation of donation only from a cumulative standpoint.
d. does not in any way disturbs the reported gross gift.

17. Which is correct? Political contributions are -

a. exempt from donor's taxes if given before the campaign period.
b. exempt from donor's taxes if given during the campaign period.
c. exempt from donor's taxes regardless of when it was given.
d. exempt from donor's taxes at the time of filing of politician's candicacy.

18. The computation of the donor's taxes is on a

a. per transaction basis.
b. per year basis of accumulation.
c. per cumulative basis on any given calendar year.
d. None of the above.

19. The computation for donor's taxes are cumulative and calendar because
a. the BIR wants an over-all info every time a donor's tax return is filed.
b. as required by Section 99 as a compliance requirement.
c. as required by the BIR to speed up the process of payment.
d. the P250,000 exemption allowed under Section 99, NIR*C.

20. Comprehensive tax situs factor/s for donor's taxes –

 a. Residency
b. Citizenship
c. Civil Status
d. All of the above

21. Which is correct? Political contributions are –

a. deductible for income tax purposes of the donor.
b. subject to donor's taxes if the donor is a corporation.
c. income subject to taxes to the recipient candidate, utilized or unutilized.
d. not a donation as it is coupled with the motive to influence.

22. The determination of the tax base for donor's taxes ultimately is based on
a. the benefit acquired by the donee.
b. the benefit acquired by the donor.
c. the benefit acquired by the donee, net of exemptions and deduction
required by law.
d. the benefit acquired by the donor, net of exemptions and deduction required by
law.

23. The donation to charitable institutions are –

a. exempt from donor's taxes and allowed as deduction from income.
b. exempt from donor's taxes and exempt from income taxes.
c. exempt from donor's taxes but subject to business taxes.
d. exempt from donor's taxes but subject to excise taxes.

24. Contributions made to Philippine Health Insurance Corporation are –

a. exempt from donor's taxes and allowed as deduction from income.
b. exempt from donor's taxes and exempt from income taxes.
c. exempt from donor's taxes but subject to business taxes.
d. exempt from donor's taxes but subject to excise taxes.

25. An act of liberality whereby a person disposes gratuitously of a thing or right in favor
of another, who accepts it. What type of activity is this, for donor's tax purposes?
a. Donatin mortis causa
b. Donation inter vivos
c. Sale or exchange
d. Acquisitive Prescription

26. A tax for which a taxpayer is directly liable on the transaction or business it engages
in, without transferring the burden to someone else.
a. Ad valorem tax
b. Specific tax
c. Direct tax
d. Indirect tax
27. The following are allowable deduction from gross gifts –
a. Donation to the government for its use.
b. Donation to non-stock, non-profit educational institution.
c. Both A and B
d. None. Technically, these are exemption from donor's taxes.

28. The donor has the option

a. to transfer donor's taxes liability to the donee under the law.
b. to withhold donor's taxes before the donation is made.
c. to withdraw the donation after knowledge of acceptance of the donee.
d. None of the above

29. Political contribution is

a. not a donation as the donative intent is secondary to the purpose of contribution.
b. not a donation as the purpose is to influence the results of the election.
c. a donation regardless of the presence of other intentions.
d. a donation with prospective consequences on the part of the recipient.

30. In a donation of immovable property, the donation must be made

a. in writing.
b. in an instrument notarized.
c. in a codicil.
d. in a deed of assignment.

31. A donation of P150,000 was made by Mr. L to Ms. M on March 30 of the year. In April
16 of the same year, he also made another P150,000 to Ms. M. What is the gross gifts
of Mr. L on April 16?
a. P0
b. P100,000
c. P150,000
d. P300,000

32. Mr. J gave a vehicle valued at P580,000 with unpaid mortgage of P280,000 to his
brother on condition that he assume the unpaid mortgage. What is the gross gifts of
Mr. J?
a. P0
b. P280,000
c. P300,000
d. P580,000

33. C donated a small piece of real property to the barangay to be used as their hall and
for such activities that it may want to pursue. If the barangay choose to accept the
donation, it must abide by the terms of the donation. If it abandons the purpose, the
 real property shall revert back to the donor. The value of the property is P3,500,000. If
the donor is a resident citizen, how much is the gross gifts to be reported in the
donor's tax return?
a. P3,500,000.
b. P3,250,000.
c. None. It is an exempt donation.
d. None. It is an incomplete donation.

34. N is a resident citizen of the Philippines, made a donation to his son on account of
marriage two days after the celebration of the marriage in the amount of P210,000. If
this is the only donation during the year, compute the donor's tax.
a. P0
b. P210,000
c. (P40,000)
d. Exempt under Section 99, NIRC

35. A donation by Mr. A was made on 20 May 2021 in the P5,000,000 to Ms. B on account
of marriage. Mr. A is the father of Ms. B and the amount was given 2 months prior to
the celebration of marriage for the purchase of a house and lot where the couple will
start a family. If this is the only donation within the year, how much the gross gifts to
be reported if the donor is a non-resident alien?
a. P5,000,000.
b. P4,750,000.
c. None. An NRA is not subject to donor's taxes.
d. P0.

36. A piece of real property was acquired by Mr. F in the amount of P5,000,000. He was
able to purchase the property by contracting a bank loan in the amount of P4,500,000.
Shortly after paying one installment of P50,000, he was not able to pay the
subsequent amortization. The influx of Chinese Pogo workers devalued the property
to P3,500,000. In anticipation of loss, he donated the property to G to get rid of the
risk involve provided he assumed the mortgage. If F is a resident alien, how much is
the gross gift to be reported in the donor's tax return?
a. P0
b. P3,500,000
c. P5,000,000
d. None. It is not a donation.

For Questions 37 - 39
Sps. D and E gave a real property valued at P7,000,000 to their daughter in marriage, one
month before its celebration. It will be used for their family home after the celebration of
their marriage. House construction will begin as soon as possible after the celebration of
marriage with a value of P8,000,000. It is estimated that the construction will take about 1
year and 2 months and turned over to the newlyweds.
37. If Sps. D and E are non-resident citizen, how much is gross gifts to be reported in the
donor's tax return one month before the celebration of the marriage?
a. P0.
b. None. It shall be reported only after the construction is complete.
c. P7,000,000 divided equally between Sps. D and E.
d. P6,750,000 divided equally between Sps. D and E.

38. If Sps. D and E are non-resident citizen, how much is gross gifts to be reported in the
donor's tax return after the completion of the construction?
a. P0.
b. None. As the house construction progress is reported, donor's tax return.
c. P8,000,000 divided equally between Sps. D and E.
d. P7,750,000 divided equally between Sps. D and E.

For questions 39 - 42
Mr. DC, a Non-Resident Alien of the Philippines, made the following donations during
2018: (a) March 31, 2018: Shares of stocks from a foreign corporation valued at
P1,500,000 to his son on account of marriage. (b) April 17, 2018: Electronic transfer of
cash from a Bank of China New York, USA to his daughter in Hong Kong, in the amount
of P2,500,000. (c) November 13, 2018: Blank Indorsement of Shares of Stocks in
Facebook, USA to his daughter, valued at P2,000,000.

39. What is the Net Gifts, as of March 31, 2018?

a. P1,500,000
b. P1,250,000
c. P0
d. P1,490,000

40. What is the Donor's Tax Payable, as of March 31, 2018?

a. P90,000
b. P75,000
c. P0
d. P89,400

41. What is the Net Gifts, as of April 17, 2018?

a. P0
b. P2,500,000
c. P3,750,000
d. P4,000,000

42. What is the Donor's Tax Payable, as of April 17, 2018?

a. P0
b. P150,000
 c. P225,000
d. P240,000

For Questions 43 - 44
Mr. and Mrs. AL, residents of the Philippines, made a donation of P2,500,000 to their
daughter S, on account of marriage, on March 18, 2018.

43. If this is the only donation during the year, compute the Donor's Tax Payable of Mr.
AL, as of March 18, 2018?
a. P60,000
b. P75,000
c. P120,000
d. P135,000

44. If this is the only donation during the year, compute the Donor's Tax Payable of Mr.
AL, if the property donated is his exclusive property, as of March 18, 2018?
a. P60,000
b. P75,000
c. P120,000
d. P135,000

For Questions 45 - 47
A donation of P100,000 was made by Mr. H to Ms. I on March 30 of the year. On April 16
of the following year, he also made another P100,000 to Ms. I. On May 19 of the next
succeeding year, he also made another donation of P100,000 to Ms. I.

45. What is the gross gifts of Mr. H on March 30?

a. P0
b. P100,000
c. Exempt under Section 99, NIRC
d. (P150,000)

46. What is the gross gifts of Mr. H on April 16?

a. P100,000
b. P200,000
c. (P50,000)
d. Exempt under Section 99, NIRC

47. What is the gross gifts of Mr. H on May 19?

a. P50,000
b. P100,000
c. P300,000
d. Exempt under Section 99, NIRC
48. Mr. and Mrs. O, resident citizens of the Philippines, who celebrated their marriage last
1974, donated on account of marriage, to their son who will be married during the
year, on 31 March, Jewelries inherited by Mrs. O brought to the marriage in the
amount of P150,000. Who will file a donor's tax return?
a. Mr. O
b. Mrs. O
c. Mr. and Mrs. O separately dividing the gift equally
d. Mr. and Mrs. O jointly

49. Mr. and Mrs. O, resident citizens of the Philippines, who celebrated their marriage last
1974, donated on account of marriage, to their son who will be married during the
year, on 17 April, Jewelries inherited during the year by Mr. O in the amount of
P250,000. Who will file a donor's tax return?
a. Mr. O
b. Mrs. O
c. Mr. and Mrs. O separately dividing the gift equally
d. Mr. and Mrs. O jointly

50. Mr. and Mrs. O, resident citizens of the Philippines, who celebrated their marriage last
2000, donated on account of marriage, to their son who will be married during the
year, on 20 May, Jewelries inherited by Mrs. O brought to the marriage in the amount
of P350,000. Who will file a donor's tax return?
a. Mr. O
b. Mrs. O
c. Mr. and Mrs. O separately dividing the gift equally
d. Mr. and Mrs. O jointly