BIR Ruling [DA-034-05]

January 27, 2005 BIR RULING [DA-034-05] 90 (C) & 91 (B) Mrs. Imelda A. Montesines 254 Mayon Street, Quezon City M a d a m : This refers to your letters dated September 22, 2004 and January 11, 2005 requesting for extension of time within which to file the estate tax return and pay for the estate tax due on the Estate of the late Emerenciana Arjona Montesines, who died on March 24, 2004. The request for an extension is sought for since you need more time to gather all the necessary documents in filing the estate tax return and your are still raising the funds to pay for the estate tax due therein. 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 foregoing justifiable grounds, your request for an extension of time within which to pay the estate tax is hereby granted up to two (2) years reckoned from the time of death of the decedent which was on March 24, 2004 pursuant to Section 91(B) of the Tax Code of 1997. On the other hand, under Section 90(C) of the Tax Code, only thirty (30) days is granted as an extension of the period within which to file the estate tax return reckoned from the lapse of the six-month within which the said return is required to be filed. Thus, considering that Emerenciana Arjona Montesines died on March 24, 2004, said period had already lapsed. Such being the case, you are hereby directed to immediately file the estate tax return for the estate of Emerenciana Arjona Montesines in order to stop the running of the interest for late filing thereof. DTAcIa Moreover, in view of the above favorable action to your request for an extension of time 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 Emerenciana Arjona Montesines. 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. Very truly yours, Commissioner of Internal Revenue By: (SGD.) JOSE MARIO C. BUAG Deputy Commissioner Legal and Inspection Group