BIR Ruling [DA-107-02]

June 07, 2002 BIR RULING [DA-107-02] 91 (B) DA-260-2000 Feria Feria Lao Tantoco Law Offices 8/F. DPC Place, 2322 Chino Roces Avenue Makati City Attention: Attys. Jose A. Feria, Jr. & Rachelle Alma R. Panganiban Gentlemen : This refers to your letter dated May 2, 2002 requesting for an extension of time for the payment of the estate tax due on the transmission of the estate to the heirs of the late Maximo T. Kalaw, Jr. pursuant to Section 91(B) of the Tax Code of 1997. It is represented that the late Maximo T. Kalaw, Jr. died on November 1, 2001 in New York City, U.S.A. while working for the Earth Council; that the last day for filing of the estate return and the payment of the estate tax is due on May 1, 2002; and that you are constrained to make this request for the following reasons, viz : "1. The necessary documents pertaining to the Estate are not yet complete since some of the properties of the decedent are located outside of the Philippines; 2. The issue with respect to the venue of payment remains unsettled because some of the relatives of the decedent claim that he was a resident of Lumban, Laguna while the others claim that the decedent was a resident of Quezon City; 3. As of this date, there is no available fund for the payment of the estate tax of the decedent. In reply, please be informed that in view of the aforementioned valid and justifiable grounds, your request for an extension of time to pay the estate tax is hereby granted. 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. Moreover, 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 the late Maximo T. Kalaw, Jr. However, it shall be understood that the estate shall be liable for the corresponding interest that have accrued thereon up to the time of filing of the estate tax return pursuant to Section 249 of the Tax Code of 1997. (BIR Ruling No. DA 260-2000 dated June 9, 2000) Very truly yours, Commissioner of Internal Revenue By: (SGD.) MILAGROS V. REGALADO Acting Assistant Commissioner Legal Service