BIR Ruling [DA-234-01]

November 08, 2001 BIR RULING [DA-234-01] Sec. 90 (B) & (C) DA 260-2000 6-9-2000 Ponce Enrile Reyes & Manalastas 3rd Floor, Vernida IV Building, 128 Leviste Street 1227 Salcedo Village, Makati City Attention: Atty. Regulus E. Cabote Gentlemen : This refers to your letter dated October 2, 2001 requesting on behalf of the estate and legal heirs of the late Laureano Arceo, for an extension of thirty (30) days counted from October 6, 2001 within which to file the estate tax return and pay the estate taxes due thereon. It is represented that the late Laureano Arceo died on April 6, 2001; that his demise left his heirs in a quandary on how to settle his estate since the decedent had long been suffering from a heart condition which affected his physical and mental state; that as a result of his condition, his personal papers and other belongings were not in order at the time of his death, hence, his heirs are still gathering the required documents for the preparation of the Estate Tax Return. 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 of 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. In view of the aforestated valid and justifiable reason, your request for an extension of thirty (30) days counted from October 6, 2001, which is the last day for filing of the estate tax return of the late Laureano Arceo is hereby granted, Accordingly, the filing of the said estate tax return of the decedent is hereby extended up to November 6, 2001 pursuant to Section 90 (C) of the Tax Code of 1997. In view of the foregoing, this Office has decided to forego the imposition of the surcharge and penalties on the estate tax due on the transmission of the estate of the late Laureano Arceo. However, it shall be understood that the estate shall be liable for the corresponding interest that have accrued thereon up to the time of filing of the estate tax return pursuant to Section 249 of the Tax Code of 1997. (BIR Ruling No. DA 260-2000 dated June 9, 2000) Very truly yours, Commissioner of Internal Revenue By: (SGD.) MILAGROS V. REGALADO Deputy Commissioner Legal Service