BIR Ruling [DA-016-03]

January 21, 2003 BIR RULING [DA-016-03] Sec. 90 (B) (C) & 91 (B) Manila Consulting Management Co ., Inc . Unit 2106, 88 Corporate Center 141 Valero St.,Corner Sedeo, Salcedo Village Makati City Attention: Ermilando D. Mapa Gentlemen : This refers to your letter dated December 18, 2002 requesting, on behalf of the legal heirs of the late Manuel Yao Cancio ,for an extension of thirty (30) days within which to file the estate tax return and two (2) years within which to pay the estate tax due thereon. It is represented that the late Manuel Yao Cancio died on June 29, 2002; that representatives of the estate are in the process of extra-judicially settling his estate; that several documents which are needed in the settlement of his estate are not yet available; and that in view thereof, his heirs are requesting for a period of thirty (30) days within which to submit the required estate tax return and an extension of two (2) years within which to pay the estate tax due thereon. In reply thereto, please be informed that under Section 90(B) and (C) of the Tax Code of 1997, 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 extrajudicially pursuant to Section 91(B) of the Tax Code of 1997. Based on the aforestated justifiable reason, your request for an extension of thirty (30) days counted from December 26, 2002, which is the last day for filing of the estate tax return of the late Manuel Yao Cancio and your request for an extension of two (2) years within which to pay the estate tax due thereon are hereby granted. Accordingly, the filing of the said estate tax return of the decedent is hereby extended up to January 25, 2003 pursuant to Section 90(C) of the Tax Code of 1997. However, since January 25, 2003 falls on a Saturday, the said estate tax return shall be filed on the next working day which is January 27, 2003. On the other hand, the payment of the estate tax shall be extended up to December 25, 2005 or two (2) years from December 26, 2002, the last day for filing the estate tax return pursuant to Section 91(B) of the Tax Code of 1997. cAISTC In view of the foregoing, 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 the late Manuel Yao Cancio to his heirs. 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 estate tax pursuant to Section 249 of the Tax Code of 1997. Very truly yours, Commissioner of Internal Revenue By: (SGD.) MILAGROS V. REGALADO Assistant Commissioner Legal Service