Lunabelles S. Matienzo-Palafox

March 26, 2007 BIR RULING [DA-178-07] Section 91 (B); DA-258-98 dtd. 06/29/98 Lunabelles S. Matienzo-Palafox Ma. Liza S. Matienzo 71 Riviera St., Mervillee Park Paraaque Madame : This refers to your letter dated January 2, 2007, requesting for an extension of time to file and pay the estate tax return on the estate of your father, GREGORIO MATIENZO, SR., who died of a cardio respiratory arrest last July 19, 2006, since you are still starting taking stock of the properties including the debts he left, and you are having difficulty in collating the titles to the properties; and that you cannot settle the estate before the lapse of six (6) months requirement. In reply, please be informed that pursuant to Section 91 (B) of the Tax Code of 1997, which provides, viz: "SEC. 91. Payment of Tax . xxx xxx xxx "(B) Extension of Time when the Commissioner finds that the payment on the due date of the estate tax or of any part thereof would imposed 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." Accordingly, in view of the aforesaid justifiable reasons, your request for extension of two (2) years until July 19, 2008, within which to pay the estate tax due thereon is hereby granted. It shall be understood, however, that the estate shall be liable to the corresponding interest that have accrued thereon up to the time of payment of the estate tax due on the transmission by the said estate of the properties in favor of the heirs pursuant to Section 249 of the Tax Code of 1997. (BIR Ruling No. DA-285-98 dated June 29, 1998) CAIHTE Very truly yours, (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service