Page 21 - Taxation (TAX 112 A & B, BA-203)
P. 21

Business, Transfer and Income Taxation

          TAX 112 A & B, BA 203

          Source: N. Aduana, Transfer and Business Taxation (2016)


            Introduction to Transfer Tax


            Basic Elements of Succession:

            3. Successor- the heir or person to whom properties is being transferred


            4. Acceptance – the act of the successor receiving properties transferred

            on his or her own free will




                          Donation  is  an  act  of  liberality  where  a  person  gratuitously

            disposes of a thing or right in favor of another who accepts it. Donation is

            a free transfer of ownership which does not impose any burden in the

            form  of  money,  service,  or  its  equivalent  for  the  property  given.  It  is

            completed by the delivery of the thing or gift with the acceptance of the

            Donee. The act is subject to Donor’s tax otherwise known as “gift tax”.


            Elements of Donation:

            1. Transfer without consideration                                       3. Delivery of the Gift


            2. Period and Object of Donation                                        4. Acceptance of the Gift
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