BIR Ruling [DA-205-03]

June 30, 2003 BIR RULING [DA-205-03] Sec. 90 (C) Mrs. Mercedita Cruz-Odal No. 28 B, Maginoo Street Piahan, Quezon City M a d a m : This refers to your letter dated May 21, 2003 requesting on behalf of the legal heirs of your late father, Manuel Reyes Cruz , for an extension of ninety (90) days within which to file the estate tax return and pay the estate tax due thereon. It is represented that your late father, Manuel Reyes Cruz, died intestate in Quezon City on November 22, 2002; that up to now you are still in the process of sorting out and collating all the relevant documents pertaining to the properties left by the decedent; and that you will not be able to file the said return within the prescribed period, hence, you are requesting for a period of ninety (90) days 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 to file the estate tax return is hereby granted but up to thirty (30) days only as provided for under Section 90(C) of the Tax Code of 1997 counted from May 21, 2003, which is the last day for filing of the estate tax return of your late father, Manuel Reyes Cruz. Accordingly, the filing of the said estate tax return of the decedent is hereby extended up to June 20, 2003. 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 father, Manuel Reyes Cruz, 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. CaHcET Very truly yours, Commissioner of Internal Revenue By: (SGD.) MILAGROS V. REGALADO Assistant Commissioner Legal Service