EXERCISES 12 - 1 To Dimapigil P 3,000,000 600,00 3,600,00 Dimasupil Gross gift Less: Deductions Mortgage assumed Assumed debt P 500,000 50,000 Net gift 550,00 3,050,00 All of the donations given by Mr Maapil are taxable Moreover, not anyone of these donations is allowed to claim exemptions such as the P10,000 dowries because all of the donations not comply with the requisites The donations given to persons who are strangers to the donor are taxable at 30% of net gift, while the donees who are not strangers to the donor are taxable based on the schedule of tax rates provided under the code The donation given to the Municipality of Arbor is not subject to donor's tax because it is a donation of property to the government for exclusively public purposes The fact that the municipality will collect P20.00 from every bus that will avail of the facilities of the bus terminal does not defeat its being for public purpose The donation given to a home for the aged is exempt also because it is a donation to a charitable institution Moreover, it is clear that only 30% and not more than this rate is to be used for administration purposes The donation given to the Development Academy of the Philippines is exempt under special law Therefore, not anyone of the above donations is subject to tax a Not exempt The entire amount is taxable b The entire value (P50,000) of the property donated is exempt because the donation is given to a political subdivision of the government for exclusively public purpose c Taxable because more than 30% of the donation is to be used for administration purposes d Exempt up to P10,000 To be able to claim exemption of P10,000 the donee must be either legitimate, recognized natural or legally adopted child A recognized natural child is an illegitimate child e The donation is exempt up to P10,000 because it is given on account of marriage and within the one year period after the celebration of marriage EXERCISES 12–2 The entire amount of P20,000 represents the gross gift P30,000, the value of the diamond ring given to the donee If the joint account is in the name of Angelo and/or Loren, any of them can withdraw without the consent of the other However, the amount of donation 43 shall be based on the amount withdrawn because that is the time where the dominion and control of the object is transferred to the donee The payment made to UST Hospital is an indirect gift to Sabaya Cuartana Therefore, the amount of P120,000 represents the gross gift If there was splitting of gift between the spouses, Wilma and Henry shall be donors and shall have a gross gift of P150,000 each Ernest shall have a gross gift of P50,000 because his contribution was not reported in the Statement of Elections and Expenditures which was submitted to the COMELEC The P3,000 shall constitute as the gross gift There is sale of the summer home for insufficient consideration The value of the gross gift would be P250,000 (P850,000 – 600,000) Jerome has relinquished dominion and control over the property because the trust is irrevocable The amount of gross gift is the fair value of the property placed in trust 10 The amount of gross gift is P200,000 However, it shall be subject to a deduction of whatever amount of gift tax will be paid 44 ... where the dominion and control of the object is transferred to the donee The payment made to UST Hospital is an indirect gift to Sabaya Cuartana Therefore, the amount of P120,000 represents the... Wilma and Henry shall be donors and shall have a gross gift of P150,000 each Ernest shall have a gross gift of P50,000 because his contribution was not reported in the Statement of Elections and. .. value of the gross gift would be P250,000 (P850,000 – 600,000) Jerome has relinquished dominion and control over the property because the trust is irrevocable The amount of gross gift is the fair