Reference no: EM133186074

Question - TAXATION -

Q1. Ms. Mimi owns the following properties:

i. A car located in the New York, United States, P2.000.000

ii. A tricycle located in New York, Cubao, P200,000

iii. A Jolibee franchise exercisable in the Philippines. P1.000.000 iv. Shares issued by San Miguel Corporation, a domestic corporation. P355.000

v. Shares issued by Budweiser Corporation. a foreign corporation. 90% of the business of which is located in the Philippines. P482.000

vi. Shares issued by Carlsberg Corporation, a foreign corporation. 60% of the business of which is located in the Philippines, P335,000 vii. Shares issued by Guinness Corporation, a foreign corporation. 30% of the business of which is located in the Philippines. P603,000 Mimi donated all these items to Harry

How much is gross gift if Mimi is a non-resident citizen?

A. 2,372,000

B. 4,975,000

C. 2,037,000

D. 4,372,000

Q2. Generous as he truly is. Newt Scamander made the following donations to various persons and institutions during 2020:

- On February 13. he donated to 20.000 square meter parcel of land in Cavite to his niece subject to the condition that she will graduate. The land was originally acquired at a price of P3,000,000, has a zonal value as of this date of P3.500.000 and an assessed value of P3.550.000

- On February 14, the next day, he transferred a diamond ring to his girlfriend. The diamond ring is worth P2.300.000.

-On April 8. Newt's niece graduates from college. The parcel of land in Cavite has increased both its zonal and assessed value by P200.000.

- On August 22. Newt gave 30.000 unlisted preference shares of Nimbus Corporation to his sister. Each share has par value of P30 and a market value of P32.

Newt is a resident and a citizen of the Philippines. All of the above donations have complied with the requirements for validity.

What is the status of the donation of the diamond ring on February 14?

a. The donation is void. Donations between persons guilty of adultery and concubinage is void.

b. The donation is void. Donation to spouses or other persons with whom the donor is in a romantic relationship is generally void, except if on occasion of family rejoicing.

c.The donation is valid.

d. The donation is void. A diamond ring is not a moderate gift.

Q3. For a resident alien, intangible personal properties located in the Philippines:

a. Should be included only if reciprocity applies.

b. Should be excluded regardless of reciprocity.

c. Should be excluded if reciprocity applies.

d. Should be included ignoring any reciprocity rules.