BIR Ruling [DA-020-04]

January 14, 2004 BIR RULING [DA-020-04] Section 90 DA-195-2003 Ms. Nora G. Ongkingco 273 D. Tuazon Street Barangay San Jose, Quezon City M a d a m : This refers to your letter dated January 4, 2004 requesting in behalf of the heirs of Purificacion G. Ongkingco for an extension of thirty (30) days within which to file the estate tax return and pay the estate tax due thereon. It is represented that you are the administrator of the Estate of Purificacion G. Ongkingco; that the decedent died on July 5, 2003; that subsequently, on November 21, 2003, your father, Norberto N. Ongkingco, also died; that you did not have enough time to attend to all the voluminous requirements to settle the estate of your parents; that the six month period to settle the estate of your mother shall expire on January 5, 2003; that the remaining time for you to acquire all the documents needed to collate the estate was not enough because of the Christmas holiday; that the rigors of attending to all the requirements within such a limited period of time has weakened your body resistance and made you sick; that mindful of the estate tax you need to pay, your current resources are very limited to settle the amount due to the large expenses incurred during the hospitalization, care, and funeral of the deceased; and that it would take a while to produce the entire amount to pay for the estate tax. In reply, please be informed that under Section 90(B) and (C) of the Tax Code of 1997, the 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 exceed five 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 aforementioned justifiable reasons, your request for an extension of thirty (30) days counted from January 5, 2004, which is the last day for filing of the estate tax return of the late Purificacion G. Ongkingco, is hereby granted. Accordingly, the filing of the said estate tax return of the decedent is hereby extended up to February 5, 2004 pursuant to Section 90 (C) of the Tax Code of 1997. In view of the foregoing, this Office has decided to forego within the 30-day period the imposition of the surcharge and penalties on the estate tax due on the transmission of the estate of the late Purificacion G. Ongkingco to her 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. This ruling is being issued on the basis of the foregoing facts as represented. However, if upon investigation, it will be ascertained that the facts are different, then this ruling shall be considered void. EcDSTI Very truly yours, Commissioner of Internal Revenue By: (SGD.) MILAGROS V. REGALADO Assistant Commissioner Legal Service