1. First statement: The donor's tax shall apply, whether the gift is direct or indirect, and whether the property is real or personal, tangible or intangible, even if the transfer is merely in trust. Second statement: Any contribution in cash or in kind to any candidate, political party or coalition or parties for campaign purposes shall be subject to donor's tax.

a. Only the first statement is correct

b. Only the second statement is correct

c. Both statements are correct

d. Both statements are incorrect

2. I. The gift is perfected from the moment the donor effects the delivery either actually or constructively of the property donated II. Donor's tax is a property tax imposed on the property transferred by the way of gift inter vivos

a. Only the first statement is correct

b. Only the second statement is correct

c. Both statements are correct

d. Both statements are incorrect

3. First statement: A donation may be exempt from donor's tax but not necessarily a deduction from the donor's gross income. Second statement: A donation can be both a part of the gross gift of the donor and a taxable income to the donee.

a. Only the first statement is correct

b. Only the second statement is correct

c. Both statements are correct

d. Both statements are incorrect

4. Since a donation to a charitable institution has a deduction without any ceiling. First statement: The net gift will be zero, so that in computing the donor's tax, the donation may be omitted in gross gifts if it is likewise omitted in deductions. Second statement: The gross gifts should be reported and the deduction shall be claimed

a. Only the first statement is correct

b. Only the second statement is correct

c. Both statements are correct

d. Both statements are incorrect

5. I. As a rule, donation between husband and wife during the marriage is void II. Donation can be made to conceived or unborn children

a. Only the first statement is correct

b. Only the second statement is correct

c. Both statements are correct

d. Both statements are incorrect

6. First statement: Gifts on account of a person's merits or services rendered are taxable whether the services are demandable debts or not. Second statement: Gifts in favor of an educational and/or religious organization are exempt from donor's tax.

a. Only the first statement is correct

b. Only the second statement is correct

c. Both statements are correct

d. Both statements are incorrect

7. First statement: The donor's tax shall apply, whether the gift is direct or indirect, and whether the property is real or personal, tangible or intangible, even if the transfer is merely in trust. Second statement: Any contribution in cash or in kind to any candidate, political party or coalition or parties for campaign purposes shall be subject to donor's tax.

a. Only the first statement is correct

b. Only the second statement is correct

c. Both statements are correct

d. Both statements are incorrect

8. First statement: A donation may be exempt from donor's tax but not necessarily a deduction from the donor's gross income. Second statement: A donation can be both a part of the gross gift of the donor and a taxable income to the donee.

a. Only the first statement is correct

b. Only the second statement is correct

c. Both statements are correct

d. Both statements are incorrect

9. 1st statement: Husband and wife are considered separate and distinct taxpayers for the purpose of the donor's tax 2nd statement: if what was donated is a conjugal or community property and only the husband signed the deed of donation, there is only one donor for donor's tax purposes, without prejudice to the right of the wife to question the validity of the donation without her consent pursuant to the pertinent provisions of the civil code of the Philippines and the family code of the Philippines

a. Only the first statement is correct

b. Only the second statement is correct

c. Both statements are correct

d. Both statements are incorrect

10. Which is incorrect concerning donation? *

a. No one is force to accept the generosity of another

b. Real property is transferred by donation only if made under public instrument

c. Donation of intangible personal property should be in writing

d. Personal property amounting to more than 5,000 should be in writing

11. Donations that do not conform to legal formalities are *

a. Exempt from Donor's tax

b. Taxable under Donor's tax notwithstanding absence for formalities

c. Subject to income tax

d. Subject to Transfer tax

12. The following transfers are taxable under donor's tax, except *

a. Transfers made by the donor to settle family disputes

b. Transfers made by a parent to see his children enjoy his properties while he still lives

c. Transfers made by the donor to relieve himself of the burden of management of his properties

d. Transfers under power of general appointment

13. A non-resident citizen donor is taxed on his donation of properties: *

a. Situated in the Philippines only

b. Situated in the Philippines only subject to the rule of reciprocity

c. Wherever situated

d. Situated outside the Philippines only

14. In computing the donor's tax on a subsequent donation, the donor must also consider; *

a. All prior net gifts during his lifetime

b. Only the present donation

c. The present and the immediately preceding donations

d. All prior net gifts during the calendar year

15. On a contribution to the church by an individual, which of the following correctly state/s the rule/s in computing the donor's tax? *

a. It pays the donor's tax at the time of the contribution at the graduated rates of the donor's tax

b. It is considered a gross gift and a deduction from the gross gifts

c. It is not considered a gift on which there will be a donor's tax

d. There is no deduction from the gross gifts

16. A resident citizen has a property in Quezon City. His legal residence is in Masbate City. While in Cebu City on a business trip, he donated his property in Quezon City to a relative who is long-time resident of Cebu City. Where will the donor file the donor's tax return? *

a. Any of the 3 cities

b. Masbate City

c. Cebu City

d. Quezon City

17. Which is correct regarding transfer inter-vivos involving personal properties for less than an adequate and full consideration *

a. The whole value of the property will be included in gross estate

b. The whole value of the property will be included in gross gift

c. The difference in fair value and consideration is part of gross estate

d. The difference in fair value and consideration is a gift subject to donor's tax

18. When is the donation completed? *

a. The moment the thing donated is delivered, either actually or constructively, to the donee

b. Upon execution of the deed of donation

c. Upon payment of the donor's tax

d. The moment the donor knows of the acceptance by the donee

19. Which of the following is an exempt donation? *

a. Donation of non-resident alien of intangible properties located in the Philippines to a non-resident alien

b. Donation of a resident alien of its properties located abroad to a non-resident alien

c. Donation of a non-resident alien of real properties located in the Philippines to a resident alien

d. Donation of a intangible properties located in the Philippines by resident aliens

20. Donor's Tax is: *

a. Excise Tax

b. Business Tax

c. Property Tax

d. Personal Tax