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