Mrs. Cherry Flor Manuel-Rodriguez

February 12, 2007 BIR RULING [DA-085-07] 90 (C) & 91 (B) Mrs. Cherry Flor Manuel-Rodriguez Unit A9 Mirasol Townhouse Mirasol Street, Cubao, Quezon City M a d a m : This refers to your letter dated January 18, 2007 stating that your late mother, Lolita Catacutan-Manuel died on August 10, 2006; that her estate has until February 9, 2007 to file the required estate tax return; that due to financial difficulties you will not be able to pay the entire estate tax due thereon, hence, you are requesting for an extension of time within which to pay the said tax; and that in connection thereof, you are requesting that the penalties, surcharge and interest imposed for the delay in the payment of estate tax be waived. In reply, 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 aforestated justifiable reason, your request for an extension of time within which to pay the estate tax is hereby granted pursuant to Section 91 (B) of the Tax Code of 1997. Accordingly, the estate tax due on the estate of your late mother, Lolita Catacutan-Manuel, may be paid up to two (2) years counted from August 10, 2006 or until August 10, 2008. 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 period within which the said return is required to be filed. Thus, considering that your mother died on August 10, 2006, said period will lapse on February 9, 2007. Such being the case, you are hereby directed to immediately file the estate tax return for the estate of Lolita Catacutan-Manuel in order to avoid the imposition of interest for late filing thereof. STaHIC Moreover, in view of the above favorable action on your request for an extension of two (2) years 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 Lolita: Catacutan-Manuel. However, it shall be understood that the estate shall be liable for the corresponding interest that has 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.) JAMES H. ROLDAN Assistant Commissioner Legal Service