BIR Ruling [DA-208-06]

April 4, 2006 BIR RULING [DA-208-06] Sec. 90 Quial Ginez Paras & Beltran 5/F, M.G. Building, 150 Amorsolo Street Legaspi Village, Makati City Attention: Atty. Winston M. Ginez Gentlemen : This refers to your letter dated October 25, 2005 requesting an extension of thirty (30) days within which to file the estate tax return and pay the estate tax due on the estate of the late Lourdes De Veyra-Sevilla. It is represented that the late Lourdes De Veyra-Sevilla died on May 10, 2005; that on July 1, 2005, you filed a petition for the probate of the will of the decedent with the Regional Trial Court of Quezon City; that the case was docketed as Special Proceedings No. Q-05-55767 and was assigned to Branch 221; that there was a delay in the appointment by the court of the executor of the decedent's will, hence, you were not able to file the estate tax return within the prescribed period. 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 thirty (30) days counted from November 10, 2005, which is the last day for filing of the estate tax return of the late Lourdes De Veyra-Sevilla, is hereby granted. Accordingly, the filing of the said estate tax return of the decedent is hereby extended up to December 10, 2005 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 the late Lourdes De Veyra-Sevilla to her heirs. However, it shall be understood that the estate shall be liable for the corresponding interest that has accrued thereon up to the time of payment of the estate tax pursuant to Section 249 of the Tax Code of 1997. SEcAIC Very truly yours, Commissioner of Internal Revenue By: (SGD.) PABLO M. BASTES, JR. OIC-Head Revenue Executive Assistant Legal Service