BIR Ruling [DA-006-99]

January 1, 1999 BIR RULING [DA-006-99] Ms. Asuncion Ayroso 1188 EDSA Bago Bantay Quezon City M a d a m : This refers to your letter dated September 17, 1998 requesting on behalf of the heirs of the late Santiago Ayroso for an extension of two (2) years within which to pay the estate tax due on the transmission of the said estate to the heirs pursuant to Section 91(B) of the Tax Code of 1997. cdta It is represented that the late Santiago Ayroso died intestate on March 24, 1998; that as the surviving spouse of the late Santiago Ayroso, you are constrained to make this request for the reason that the payment on the due date of the estate tax would impose undue hardship upon the heirs; that the heirs are not in a position to raise the amount to pay the said tax in a very short period of time, as some of the properties left by the decedent have to be converted into cash in order to pay the estate tax. In reply, please be informed that Section 91(B) of the Tax Code of 1997 reads: "(b) Extension of Time . When the Commissioner finds that the payment on the due date of the estate tax or any part thereof would impose undue hardship upon the estate or any of the heirs, he may extend the time for payment of such tax or any part thereof not to exceed five (5) years, in case the estate is settled through the courts, or two (2) years in case the estate is settled extrajudicially. In such case, the amount in respect of which the extension is granted shall be paid on or before the date of the expiration of the period of the extension, and the running of the Statute of Limitations for assessments provided in Section 203 of this Code shall be suspended for the period of any such extension. xxx xxx xxx" Accordingly, in view of the aforestated justifiable reason, your respect for an extension of two (2) years within which to pay the estate tax due thereon is hereby granted. Thus, you are given until September 24, 2000 to pay the estate tax due on the estate of the late Santiago Ayroso. cdti It shall be understood that the estate shall be liable to the corresponding interest that have accrued thereon up to the time of payment of the estate tax. Very truly yours, (SGD.) BEETHOVEN L. RUALO Commissioner of Internal Revenue