DONOR'S TAX
• What is a donation?
• Is donation considered a contract?
NATURE OF DONOR'S TAX
• What is a donor's tax?
• What is the subject?
• Is it considered a property tax?
• It shall be imposed?
• Is it a direct tax?
• What does it mean for the term "transfer of property in trust or otherwise, direct or
indirect"?
• When is a transfer becomes complete and taxable?
PERFECTION OR COMPLETION OF DONATION
• When is donor's tax applied?
• When is the transfer of property by gift is perfected?
• When is the transfer of property by gift is completed?
LAW THAT GOVERNS THE IMPOSITION
• What is the law that shall govern the imposition of donor's tax?
ELEMENTS OF DONATION
• What are the elements of donation?
INCOMPLETE GIFT
• When is a gift considered incomplete?
• When does an incomplete gift becomes complete?
PURPOSE OF DONOR'S TAX
• What is the purpose of donor's tax?
FORMALITIES
• Donation of movable property (personal property)
• Donation of immovable property (real property)
CHARACTERISTICS OF DONOR'S TAX
• What are the characteristics of a donor's tax?
CLASSIFICATION OF DONATION
• As to motive or purpose
• As to time of taking effect
VALUATION OF GROSS GIFTS
• Real property
• Stocks bonds and other securities
GROSS GIFTS
• Composition of gross gifts depends on the?
• Resident Citizen
• Non-resident Citizen
NOTE: The rules in computing the gross estate also apply in determining the gross gifts
RECIPROCITY RULE
• It only applies to?
• There is reciprocity when?
INTANGIBLE PERSONAL PROPERTY IN THE
PHILIPPINES
• What are the intangible personal property considered to be located in the Philippines?
COMPUTATION OF TAXABLE NET GIFT
• Gross gifts include?
• Deductions include?
• Taxable Net Gifts Formula
DONOR'S TAX RATE
• Tax Rate
• Computation of donor's tax is on a?
• Any contribution in cash or in kind to any candidate, political party or coalition of
parties?
• Husband and Wife
STRANGER
• Stranger is a person who is NOT?
• Is a legally adopted child who is entitled to all the rights and obligations a stranger?
• Who shall be considered as donations made to strangers?
NOTE: Relationship of the donor and the donee is already irrelevant in the TRAIN LAW
TRANSFER FOR INSUFFICIENT CONSIDERATION
• What is the deal with a transfer for insufficient consideration?
• Transfers made bona fide?
• If the consideration is fictitious?
DONOR'S TAX FOR SALE OR EXCHANGES NOT
THROUGHT THE LOCAL STOCK EXCHANGE OF
SHARES OF STOCK IN DC
• What does the measurement of gain from the disposition of property merely
considers?
• What is the deal if the parties would declare a lower selling price?
• Under the rules of statutory constitution, what is the deal with exceptions?
• Issue whether the transaction is of arm's length?
CONDONATION OR CANCELLATION OF
INDEBTEDNESS
• What is condonation or remission of debt?
• How does the supreme court defined condonation or remission of debt?
• Is it subject to donor's tax?
• What are the instances wherein their is not condonation of indebtedness or donation?
PAYMENT OF LOAN BY THE GUARANTOR
• Guarantee?
• If the obligation is jointly entered into by the guarantor and the borrower with a
creditor-bank?