BIR Ruling [DA-051-04]

February 6, 2004 BIR RULING [DA-051-04] Sec. 90 Benitez Parlade Africa Herrera Parlade & Panga 26/F, Orient Square Building, Emerald Avenue Ortigas Centre, Pasig City Attention: Atty. Simeon G. Hildawa Gentlemen : This refers to your letter dated January 19, 2004 requesting on behalf of your client, the sole heir of the late Nieves Sanchez , 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 the late Nieves Sanchez died on July 20, 2003; that her nearest surviving kin is her auntie, Mrs. Natividad Millar who is already past seventy-five (75) years old; that it took sometime before Mrs. Millar got over the grief brought about by the loss of Ms. Nieves Sanchez; that she is now collating all the documents pertaining to the estate of the decedent; that she engaged the services of your law firm only recently; and that you will not be able to file the said return within the prescribed period, hence, you are constrained to seek a 30-day extension within which to file the required estate tax return and 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 (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 forestalled justifiable reason, your request for an extension of thirty (30) days counted from January 20, 2004, which is the last day for filing of the estate tax return of the late Nieves Sanchez, is hereby granted. Accordingly, the filing of the said estate tax return of the decedent is hereby extended up to February 19, 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 Nieves Sanchez to her sole heir. 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. DA heat Very truly yours, Commissioner of Internal Revenue By: (SGD.) MILAGROS V. REGALADO Assistant Commissioner Legal Service