BIR Ruling [DA-244-99]

April 19, 1999 BIR RULING [DA-244-99] Atty. Ana Bella V. Corotan 15 18th Street, New Manila Quezon City M a d a m : This refers to your letter dated December 7, 1998 requesting on behalf of the Estate of the late Nicolas Armin J. Jalandoni for an extension of time to file the estate tax return and to pay the estate tax due thereon pursuant to Section 90(C) and 91(B) of the Tax Code of 1997. It is represented that the late Nicolas Armin J. Jalandoni died on June 12, 1998 in Silay City, that his estate is large and the filing fees for probate of the will is not easily affordable; that the heirs have not yet been able to have the will probated; and that the heirs have retained the services of lawyers and an accountant for the inventory of the estate. In reply thereto, please be informed that in view of the aforestated justifiable reasons, your request for an extension of thirty (30) days up to January 11, 1999 within which to file the estate tax return of the said estate is hereby granted pursuant to Section 90(C) of the Tax Code of 1997. Moreover, pursuant to Section 91(B) of the Tax Code of 1997, viz: "(B) Extension of Time . When the Commissioner finds that the payment on the due date of the estate tax or any part thereof would impose 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. xxx xxx xxx" Accordingly, your request for an extension within which to pay the estate tax due on the transmission of the Estate of the late Nicolas Armin J. Jalandoni, is likewise hereby granted up to five (5) years in case the estate is settled through the courts or two (2) years in case the estate is settled extrajudicially from the death of the decedent. It shall be understood, however, that the estate shall be liable to the corresponding interest that have accrued thereon up to the time of filing the return and payment of the estate tax due on the transmission of the said estate to the heirs pursuant to Section 249 of the Tax Code of 1997. (BIR Ruling Nos. DA-321-98 dated July 17, 1998 and DA-483-98 dated November 9, 1998) LLphil Very truly yours, (SGD.) BEETHOVEN L. RUALO Commissioner of Internal Revenue