BIR Ruling [DA-058-97]

February 5, 1997 BIR RULING [DA-058-97] Mr. Vicente del Villar 55 Gen. Vicente Lim Little Baguio, San Juan Metro-Manila S i r : This refers to your letter dated August 9, 1996 requesting for a consideration of the proposed assessment and waiver of the surcharge and the compromise penalties assessed by Revenue Region No. 7, Quezon City in addition to the estate tax due on the estate of the late Victoria A. del Villar. cdt It is represented that Mrs. Victoria A. del Villar a resident of 55 Gen. Vicente Lim, Little Baguio, San Juan, Metro Manila died on June 24, 1995 at the Lourdes Hospital; that her estate consists mainly of real and personal properties amounting to P3,003,000.00; that under Section 83(b) of the Tax Code, as amended, the estate tax return is due for filing on December 24, 1995, six (6) months from the time of decedent's death; but that, in view of your health condition, you were constrained to make a request with Revenue Region No. 7, Quezon City for an extension of thirty (30) days within which to file the corresponding estate tax return due on the transmission of the estate of the late Victoria A. del Villar; that for failure of the said Regional Office to act on your request on time, you filed the estate tax return on January 6, 1996 and paid the tax of P50,380.00 as first assessed by that Office; and that on July 11, 1996, you were informed by the Chief of the Assessment Division, Ms. Socorro Z. Duran by way of Pre-Assessment Notice that the amount of P35,580.00 is still due from the estate of Victoria A. del Villar representing deficiency estate tax for the year 1995. In reply, please be informed that after a careful study of the facts of the case and the laws applicable thereto, this Office hereby grants your request for reconsideration and the waiver of the corresponding surcharge and compromise penalties in the total amount of P35,580.00 on the assessment made by the BIR Regional Office in Quezon City. Inasmuch as you have already paid the estate tax on January 6, 1996 in the amount of P50,380.00 leaving a balance of P740.00 (P51,120.00 P50,380.00) representing the basic estate tax, you are hereby requested to settle the balance within 10 days from receipt hereof, in order that this case may be considered closed and terminated. It shall be understood, however, that the estate shall be liable to the corresponding interest that have accrued thereon up to the time of filing of the return and payment of the estate tax due on the transmission of the said estate to the heirs. aisadc This will serve as authority for you to transfer the properties (real and personal) left by the late Victoria A. del Villar unto the surviving heirs. Very truly yours, LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue