Scribd
Upload
686 views

Chapter 14 Illustrations

1. Mr. and Mrs. Polo made several donations of property to family members and organizations throughout the year. 2. The tax obligations of each spouse must be calculated separately based on whether the donee is a non-stranger or stranger. 3. Donations made to political candidates or parties are exempt from donor's tax if made during an election campaign period. Donations made before or after the period would be subject to tax.

Uploaded by

E.D.J
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
686 views

Chapter 14 Illustrations

1. Mr. and Mrs. Polo made several donations of property to family members and organizations throughout the year. 2. The tax obligations of each spouse must be calculated separately based on whether the donee is a non-stranger or stranger. 3. Donations made to political candidates or parties are exempt from donor's tax if made during an election campaign period. Donations made before or after the period would be subject to tax.

Uploaded by

E.D.J
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
You are on page 1/ 8

Illustration(pre-TRAIN):Mr. and Mrs.

Polo made donations of their conjugal property to the following:

Date of Donation Donee

Feb. 14 To Berna, daughter and Mario, her groom on their marriage last Jan.25
April 8 To Philippine National Red Cross(PNRC)

April 13 To the Province of Bulacan


May 13 To Dina, Mrs. Polo's sister as gift for Dina's birthday
June 13 To Mayor Reynes who is running for reelection
Sept. 20 To Lito, Mr. Polo's brother for topping the medical board exam

*On the one-unit apartment donated by Mrs. Polo to her sister, Dina has unpaid mortgage of P300,000
*Of the P 430,000 cash given to Mr. Polo's brother, Lito, Mr. Polo pointed out that P 30,000 must be donated to St.

The donor's tax payable by each spouse for last donation made within the year are computed below:
Mrs. Polo
1. Donor's tax to be based on the table for donations to non-strangers.
Gross Gift,May 13, To Dina
Less: Exemption
Net Gift, This Date
Add: Prior Net Gift
Gross Gift,Feb. 14, To Berna
Less: Exemption
Aggregate Net Gift

Donor's Tax, Total Net Gift


On 200,000
190,000
390,000

Less: Tax on Prior Net Gift


On 100,000
90,000
190,000
Donor's Tax Due

2. 30% Donor's tax for Donations to strangers.


Gross Gift,Sept. 20, To Lito
Less: Exemption
Net Gift, This Date
Add: Prior Net Gift
Gross Gift,April 13, To Bulacan
Less: Exemption
Net Gift, This Date

Gross Gift,April 8, To PNRC


Less: Exemption
Net Gift, This Date

Gross Gift,Feb. 14, To Mario


Less: Exemption
Net Gift, This Date
Total Net Gift
Multiply by:
Donor's Tax on Total Net Gift
Less: Donor's Tax on All Prior Net
Gift(2/14, P 200,000 x 30%)
Donor's Tax Due

Mr. Polo
1. Donor's tax to be based on the table for donations to non-strangers.
Gross Gift,Sept. 20, To Lito
Less: Exemption
Net Gift, This Date
Add: Prior Net Gift
Gross Gift,Feb. 14, To Berna
Less: Exemption
Aggregate Net Gift

Donor's Tax, Total Net Gift


On 200,000
190,000
390,000

Less: Tax on Prior Net Gift


On 100,000
90,000
190,000
Donor's Tax Due

2. 30% Donor's tax for Donations to strangers.


Gross Gift,May 13, To Dina
Less: Exemption
Net Gift, This Date
Add: Prior Net Gift
Gross Gift,April 13, To Bulacan
Less: Exemption
Net Gift, This Date

Gross Gift,April 8, To PNRC


Less: Exemption
Net Gift, This Date

Gross Gift,Feb. 14, To Mario


Less: Exemption
Net Gift, This Date
Total Net Gift
Multiply by:
Donor's Tax on Total Net Gift
Less: Donor's Tax on All Prior Net
Gift(2/14, P 200,000 x 30%)
Donor's Tax Due

FYI: Under the Omnibus Election Code(OEC) and Republic Act 7166, contributions to candidates or political parties
period would be exempt from donor's tax. Thus, donations used BEFORE or AFTER the campaign period would be

Assignment: Answer Mulltiple Choice(21 items) page 230-232


y to the following:
Mrs. Polo Mr. Polo
Property Donated Fair Market Value Non-Stranger Stranger Non-Stranger

Resthouse in Zambales P 800,000 Berna Mario Berna


Cash 400,000 PNRC

Bulacan
Province
Lot for Public Playground 2,000,000
Apartment one unit 700,000 Dina
Cash 300,000
Cash 430,000 Lito Lito

ortgage of P300,000
P 30,000 must be donated to St. Paul, The Apostle Parish

computed below:

P 350,000
150,000
200,000

200,000
10,000 190,000
P 390,000

P 2,000
x 4% 7,600
P 9,600

0
x 2% 1,800 1,800

7,800

P 215,000
15,000
P 200,000
1,000,000
1,000,000
-

200,000
200,000
-

200,000
-
200,000 200,000
P 400,000
30%
P 120,000

60,000
P 60,000

P 215,000
15,000
200,000

200,000
10,000 190,000
P 390,000

P 2,000
x 4% 7,600
P 9,600

0
x 2% 1,800 1,800

7,800

P 350,000
150,000
P 200,000

1,000,000
1,000,000
-

200,000
200,000
-

200,000
-
200,000 200,000
P 400,000
30%
P 120,000

60,000
P 60,000

to candidates or political parties will not be subject to donor's tax, further, donations spent during the campaign
R the campaign period would be subject to donor's tax.
Mr. Polo
Stranger

Mario
PNRC

Bulacan
Province

Dina
uring the campaign

You might also like