BIR Ruling [DA-040-99]

January 22, 1999 BIR RULING [DA-040-99] Mr. Victor Kierulf 21 Scout Rallos Street Quezon City S i r : This refers to your letter dated January 6, 1999 requesting on behalf of the heirs of the Estate of the late Sixta De Lara Kierulf for extension of time to file the estate tax return and to pay the estate tax due thereon pursuant to Sections 90(C) and 91(B) of the Tax Code of 1997. aisadc It is represented that the late Sixta De Lara Kierulf died on July 29, 1998; that you are constrained to make this request for the reason that the heirs are still in the process of conducting an inventory of the properties and obligations left by the deceased; and that the payment of estate tax will cause undue financial hardship upon the estate and the heirs of the deceased. In reply, please be informed that in view of the aforestated justifiable reason, your request for an extension of thirty (30) days up to February 28, 1999 within which to file the estate tax return of the said estate is hereby granted pursuant to Section 90(C) of the Tax Code of 1997. Moreover, pursuant to Section 91(B) of the Tax Code of 1997, viz: "(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 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 assessment provided in Section 203 of this Code shall be suspended for the period of any such extension. xxx xxx xxx." Accordingly, your request for an extension of time within which to pay the estate tax due on the transmission of the estate of the late Sixta De Lara, is likewise hereby granted up to two (2) years from the death of the decedent. It shall be understood that the estate shall be liable to the corresponding interest that have accrued thereon up to the time of filing of the return payment of the estate tax due on the transmission of the said estate to the heirs pursuant to Section 249 of the Tax Code of 1997. (BIR Ruling Nos. DA-321-98 dated July 17, 1998 and 483-98 dated November 9, 1998) Very truly yours, (SGD.) BEETHOVEN L. RUALO Commissioner of Internal Revenue