Atty. Rogel R. Atienza

April 4, 2007 BIR RULING [DA-213-07] Atty. Rogel R. Atienza 3/F, Danny Floro Building C. Raymundo Avenue, Caniogan Pasig City S i r : This refers to your letter dated March 26, 2007 stating that the estate of Jose Mari A. Rufino has until March 27, 2007 to file the required estate tax return and pay the estate tax due thereon; that due to the unexpected addition to the estate of a good number of recently discovered shares in various companies and membership clubs and of possible bank account/s abroad, as well as the probable delay in the court appointment of the executor or administrator for the estate as the heirs are contesting the probation of the will of the decedent, it would be impossible for any of the heirs to file the estate tax return and pay the estate tax due thereon within the prescribed period; that considering the huge amount of estate tax to be paid and the illiquid status of the estate and of the inability of the heirs to produce the same, you are anticipating that the heirs will need for a court-approved sale of some of the assets of the estate in order to defray the same; that in connection therewith, you are requesting for at least three (3) months from March 27, 2007 or until June 27, 2007 within which to file the estate tax return and five (5) years within which to pay the corresponding estate tax reckoned from March 27, 2007. HSacEI In reply, 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 time within which to pay the estate tax is hereby granted pursuant to Section 91 (B) of the Tax Code of 1997. However, the five-year extension shall be reckoned from February 25, 2007, the last day prescribed by law within which to file the estate tax return. Accordingly, the heirs of Jose Mari A. Rufino is hereby given until February 25, 2012 within which to pay the estate tax. On the other hand, we regret to inform you that your request for another extension of time to file the estate tax return for the estate of Jose Mari A. Rufino is hereby denied for lack of legal basis. Under Section 90 (C) of the Tax Code, as amended, only thirty (30) days is granted as an extension of the period within which to file the estate tax return reckoned from the lapse of the six-month period within which the said return is required to be filed. Such being the case, you are hereby directed to immediately file the estate tax return for the estate of Jose Mari A. Rufino in order to stop the running of the interest for late filing thereof. Very truly yours, Commissioner of Internal Revenue By: (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service