BIR Ruling [DA-166-03]

May 20, 2003 BIR RULING [DA-166-03] 90 and 91 Mr . Adeodato C. Duque, Jr . Unit N, G & M Complex 109 J.P. Rizal Street Project 4, Quezon City S i r : This refers to your letter dated May 15, 2003 requesting on behalf of the heirs of the late Eleuteria Cruz-Duque for an extension of thirty (30) days within which to file the estate tax return and one (1) year within which to pay the estate tax due thereon. It is represented that Eleuteria Cruz-Duque died intestate on November 21, 2002 leaving as heirs her five (5) children; that two (2) of the children are living outside the Philippines; that the heirs feel that they cannot within the said period prepare all the documents necessary to file the estate tax return before its deadline on May 21, 2003, as they are still in the process of gathering and retrieving all the documents and raising the corresponding funds to pay the estate tax; that because some of the heirs are living abroad, they need additional time to work out and finalize the extra-judicial settlement of the estate of their mother, the late Eleuteria Cruz-Duque; that at the time of death, the deceased left three (3) parcels of land; that aforesaid properties are located in Caloocan City, where the ancestral home was built and where one of the heirs is living with his family; and that the only way to pay off the decedent's estate tax is through the sale of the Grace Park property and considering the current real estate market condition, it may take sometime before said property can be sold; that at the moment, there is no buyer of the said property; that the heirs feel that if they will sell the said property under pressure, they will not be able to get a reasonable price and may even sell at a loss; and that the heirs are certain that the filing of the estate tax return and payment of the tax within six (6) months from the decedents' death would impose undue hardship upon the estate. In reply, please be informed that in view of the aforementioned valid and justifiable ground, your request for an extension of thirty (30) days to file the estate tax return and one (1) year to pay the estate tax reckoned from May 21, 2003, the date fixed for the filing and payment thereof, is hereby granted pursuant to Sections 90 and 91 both of the Tax Code of 1997. HDTSCc Very truly yours, (SGD.) MILAGROS V. REGALADO Assistant Commissioner Legal Service