Practice question
A donor transfers personal property outside Section 24(D) for less than adequate full consideration. The stipulated difference between fair value and consideration is PHP400,000, and no ordinary-business proviso or other exception applies. The donor says only a deed expressly titled donation can create a deemed gift. Which is best?
- Section 100 can treat the PHP400,000 difference as a gift for its statutory computation despite the title argument.
- The absence of the word donation always excludes Section 100.
- Only real property may ever be a gift.
- Every below-value transfer necessarily has zero deemed-gift amount.
- The consideration automatically becomes a refund from the BIR.
Legal references
- NIRC Sections84-85,98 and104, read with TRAIN amendments: https://lawphil.net/statutes/repacts/ra1997/ra_8424_1997.html
- RA10963, TRAIN, estate and donor tax amendments including Sections99-100: https://lawphil.net/statutes/repacts/ra2017/ra_10963_2017.html
Answer this question in flashcards to review your response and continue practicing.