BIR Ruling [DA-168-03]

May 23, 2003 BIR RULING [DA-168-03] Sec. 90 (B) (C) Mrs. Leticia D. Tong 104 Sto. Domingo Street Quezon City M a d a m : This refers to your letter dated April 30, 2003 requesting on behalf of the heirs of the late Bonifacio Tong , for an extension of thirty (30) days within which to file the estate tax return and pay the estate tax due thereon. It is represented that your late husband, Bonifacio Tong, died on November 6, 2002; that the decedent executed a will and named you as the executrix; that said will is now pending probate before the Regional Trial Court of Quezon City, Branch 82; that the estate does not have sufficient funds to cover the tax or taxes due the government, hence, you are requesting for a period of two (2) months within which to file the required estate tax return and pay the estate tax due thereon. In reply thereto, 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 period within which to file the estate tax return is hereby granted but up to the maximum of thirty (30) days only counted from May 8, 2003, which is the last day for filing of the estate tax return of your late husband, Bonifacio Tong. Accordingly, the filing of the said estate tax return of the decedent is hereby extended up to June 9, 2003 pursuant to Section 90(C) of the Tax Code of 1997. In view of the foregoing, this Office has decided to forego within the 30-day period the imposition of the surcharge and penalties on the estate tax due on the transmission of the estate of your late husband, Bonifacio Tong, to his heirs. However, it shall be understood that the estate shall be liable for the corresponding interest that have accrued thereon up to the time of payment of the estate tax pursuant to Section 249 of the Tax Code of 1997. TSacCH Very truly yours, Commissioner of Internal Revenue By: (SGD.) MILAGROS V. REGALADO Assistant Commissioner Legal Service