[Answer/discuss the question below, or see 2016 bar exam Taxation Instructions; 2016 Labor Law Questions: 1, 2, 3, 4, 5, 6, 7, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, and 20; See also 2016 Bar Exam: Information, Discussions, Tips, Questions and Results]
In 2011, Solar Computer Corporation (Solar) purchased a proprietary membership share covered by Membership Certificate No. 8 from the Mabuhay Golf Club, Inc. for PS00,000.00. On December 27, 2012, it transferred the same to David, its American consultant, to enable him to avail ofthe facilities ofthe Club. David executed a Deed of Declaration of Trust and Assignment of Shares wherein he acknowledged the absolute ownership of Solar over the share; that the assignment was without any consideration; and that the share was placed in his name because the Club required it to be done. In 2013, the value o f the share increased to P800,000.00.
Is the said assignment a “gift” and, therefore, subject to gift tax? Explain. (5%)