Tax managers/consultants are said to adjust the timing of transactions in anticipation of expected tax changes. Assuming that you were a tax consultant in the Philippines, and a client sought your advice regarding her intention to donate her properties. It was December 10, 2017. Your client informed you that she will be donating 3 types of properties to 3 different persons. The value of the properties are as follows:

Property 1: P 255,000

Property 2: P 450,000

Property 3: P 750,000

You discussed with her that such donations are subject to donor's tax. Will you advise your client to donate in 2017 or in 2018? Explain your answer. Also provide the computations to support your advice.

Answer rating: 100% (QA)

As a tax consultant I would advise my client to consider donating in 2017 rather than 2018 In the Ph... View the full answer