It used to, though I don't know if that was changed in the last patch or not. Alot of people considered it an exploit and I'm not sure if Firaxis closed that loophole or not.
The unofficial patches did, the officials never did so, so in 3.17 you can still just gift them (assuming you at least have OB to get into their territory).
I call it fair play, until they patch away obvious oversights like favorite civics blocking *ALL* civic bribes, large #'s of civs not liking you enough at friendly, vassal interface lies, and hidden modifiers that are completely impossible to deal with in some circumstances.
Oh yeah, and the absolutely horrible, obnoxious, stupidly broken capitulation mechanics.
If they are going to touch up the wall whip/chop "exploit" and gifting to AIs in theocracy, they better !@#$%ing fix the other issues too, or I don't wanna hear it.