BIR Ruling [DA-108-99]

February 19, 1999 BIR RULING [DA-108-99] Mrs. Jocelyn M. Arcenas-Banzon No. 21 Avelino Street Xavierville Subdivision Quezon City M a d a m : This refers to your letter dated January 21, 1999 jointly signed by Messrs. Albert and Diego M. Arcenas, requesting for a partial settlement of the estate tax due on the Estate of the late Lilia M. Arcenas and waiver of the surcharge, penalties and the interest thereon. LibLex It is represented that your mother, the late Lilia M. Arcenas died last December 26, 1995; that your inability to pay on time the corresponding estate tax was brought about by the following reasons: 1. When your mother died, the estate of her late mother, Elisa D. Miranda, who died on March 24, 1988 has not yet been settled and the court where the estate of Elisa D. Miranda is being settled has not even appointed a regular administrator up to now; and the bulk of the assets that will be declared by your late mother will come from her inheritance from Elisa D. Miranda, 2. The cash position of the estate from the time your mother died has not improved; and 3. The BPI Family Bank, where your late mother obtained a loan prior to her death, is now foreclosing on your family home. In reply, please be informed that 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 the 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 as provided in Section 203 of this Code shall be suspended for the period of any such extension. xxx xxx xxx." Accordingly, in view of the aforestated justifiable reason, your request for partial settlement of the estate tax due from the Estate of your deceased mother is hereby granted up to December 25, 2000. Furthermore, your request for waiver of surcharge and penalties on the estate tax due on the transmission of the estate of your late mother is likewise granted but the estate shall be liable to the corresponding interest that has accrued thereon up to the time of payment of the estate tax on or before the above-stated date. (BIR Ruling No. DA-270-98 dated June 26,1998) dctai Very truly yours, (SGD.) BEETHOVEN L. RUALO Commissioner of Internal Revenue