Taxation, 2011 Bar — Question 52

MULTIPLE CHOICE

Levox Corporation wanted to donate P5 million as prize money for the world professional billiard championship to be held in the Philippines. Since the Billiard Sports Confederation of the Philippines does not recognize the event, it was held under the auspices of the International Professional Billiards Association, Inc. Is Levox subject to the donor's tax on its donation? (A) No, so long as the donated money goes directly to the winners and not through the association. (B) Yes, since the national sports association for billiards does not sanction the event. (C) No, because it is donated as prize for an international competition under the billiards association. (D) Yes, but only that part that exceeds the first P100,000.00 of total Levox donations for the calendar year.

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