Statement I - If the problem is silent as to the cause of the failure to file and pay the tax on time, it is presumed that the failure is due to willful neglect.

Statement II -A taxpayer who reports a gross receipt of 25% less than the actual is presumed guilty of substantial understatement and shall be penalized by an amount of 50% of the basic tax for filing a fraudulent return.

a. Only Statement II is true.

b. Both statements are true.

c. Only Statement I is true.

d. Both statements are false.

ABC Corporation a domestic corporation duly registered under Philippine laws, made the following donation for the year as follows: March 31, Shares of stock of ABC Corporation to its shareholders. June 30, Land to subsidiary Corporation. September 30, Cash to corporate manager and officers. November 30, P100,000 donation to a government school for the construction of school building. December 31, P100,000 donation to a private school for the construction of school building. Based on the information above, what type of tax is imposed on June 30 donation?

a. Exempt from tax

b. Donor tax

c. Fringe benefit tax

d. Normal income tax