Atty. Dalisay Ople-San Jose

January 4, 2007 BIR RULING [DA-001-07] 90 (C) & 91 (B); DA-298-2004 Atty. Dalisay Ople-San Jose Legal Counsel Spirit of Communications Centre 106 Carlos Palanca Jr., St. Legaspi Village, Makati City M a d a m : This refers to your letter dated November 28, 2006 requesting on behalf of the Estate of Severo Santiago for an extension of two (2) years within which to pay the estate tax return pursuant to Section 91(B) of the Tax Code of 1997, as amended. SEIaHT It is represented that the Late Severo Santiago died on June 06, 2006; that among the properties left by the decedent were shares of stock in various corporations; that you are still in the process of locating some of the stock certificates to obtain the interim book value of the shares of stock; and that some of these companies have yet to update their financial statements. DICSaH In reply, please be informed that pursuant to Section 90 (B) and (C) of the Tax Code of 1997, as amended, estate tax return is required to be filed within six (6) months from the decedent's death, and in meritorious cases, a reasonable extension not exceeding thirty (30) days for filing the return may be granted by the Commissioner of Internal Revenue. The payment of the estate tax or any part thereof shall be made upon the filing of the return or on such date as fixed if an extension is granted by the Commissioner, but in no case to exceed five (5) years in case the estate is settled through the courts, or two (2) years in case the estate is settled extra-judicially pursuant to Section 91(B) of the Tax Code of 1997, as amended. Based on the aforesaid justifiable reason, your request for an extension of two (2) years reckoned from December 6, 2006 within which to pay the estate tax is hereby granted pursuant to Section 91(B) of the Tax Code of 1997, as amended. On the other hand, under Section 90(C) of the same Code, only thirty (30) days is granted as an extension of the period within which to file the estate tax return, thus, considering that Severo Santiago died on June 6, 2006, said period is about to lapse. Such being the case, you are hereby directed to immediately file the estate tax return for the estate of Severo Santiago in order to stop the running of the interest for late filing thereof. Moreover, in view of the above favorable action to your request for an extension of two (2) years within which to pay the estate tax, this Office has decided to forego the imposition of the surcharge and penalties on the estate tax due on the transmission of the estate of Severo Santiago. However, it shall be understood that the estate shall be liable for the corresponding interest that have accrued thereon up to the time of payment of the aforesaid estate tax pursuant to Section 249 of the Tax Code of 1997, as amended. (BIR Ruling No. 298-2004 dated June 01, 2004) Further, the special administratrix of the estate of Severo Santiago, is required to furnish a bond in such amount not exceeding double the amount of the tax and/or a surety conditioned upon the payment of the estate tax in accordance with the terms of this extension. aIcHSC Very truly yours, Commissioner of Internal Revenue By: (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service