BIR Ruling [DA-026-03]

January 30, 2003 BIR RULING [DA-026-03] Secs. 90 (B), (C) & 91 (B) Atty. Apollo X.C.S. Sangalang 13 Nueva Ecija Street, Philamlife Village Pamplona II, Las Pias City S i r : This refers to your letter dated November 28, 2002 requesting, on behalf of the legal heirs of your late father, Nicasio M. Sangalang , for an extension of thirty (30) days counted from January 4, 2003 within which to file the estate tax return and pay the estate taxes due thereon. It is represented that the late Nicasio M. Sangalang died on July 8, 2002; that at present, you, as well as the other heirs, are still in the process of collating the gross estate of the decedent; that because of the unfamiliarity of the heirs to the properties, businesses and transactions of the decedent, and due to the onset of the holiday season, you are anticipating a delay in the filing of the estate tax return; and that in view thereof, you are requesting for a period of thirty (30) days within which to submit the required estate tax return. 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. DTEAHI Based on the aforestated justifiable reason, your request for an extension of thirty (30) days counted from January 4, 2003, which is the last day for filing of the estate tax return of the late Nicasio M. Sangalang is hereby granted. Accordingly, the filing of the said estate tax return of the decedent is hereby extended up to February 2, 2003 pursuant to Section 90(C) of the Tax Code of 1997. 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 Nicasio M. Sangalang 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 filing of the estate tax return 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