Mr. Gerard P. Suanes

April 20, 2007 BIR RULING [DA-247-07] Mr. Gerard P. Suanes 16 I. Villegas St. corner Baler St. S.F.D.M., Quezon City S i r : This refers to your letter dated March 20, 2007 stating that your father, Nicetas Amarillo Suanes, died on May 14, 1973; that your mother, Henedina Palaypay Suanes, was not able to attend to the properties left by your father, hence, his estate was left unsettled; that on February 19, 2007, your mother died; that due to limited financial capacity you will not be able to pay immediately the estate taxes due on your parents' estates, hence, you are requesting an extension of two (2) years within which to pay the same; and further, since you are financially challenged, you are requesting that a waiver of the imposition of penalty and surcharge be granted in your favor. 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 two (2) years within which to pay the estate tax is hereby granted pursuant to Section 91 (B) of the Tax Code of 1997, as amended. However, the said extension of two years shall be applicable only to the estate of your mother. The period within which to file the estate tax return and pay the tax on your father's estate had lapsed already. Accordingly, you are hereby given until February 19, 2009 within which to pay the estate tax due on the estate of your late mother, Henedina Palaypay Suanes. On the other hand, 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. Considering that your mother died on February 19, 2007, you have until September 19, 2007 to file the estate tax return for her estate. HIDCTA Moreover, in view of the above favorable action on your request for an extension of two (2) years within which to pay the estate tax of your mother, this office has decided to forego the imposition of the surcharge and penalties on the estate tax due on the transmission of her estate. However, it shall be understood that her estate shall be liable for the corresponding interest that has accrued thereon up to the time of payment of the aforesaid estate tax pursuant to Section 249 of the Tax Code of 1997. On the other hand, with regard to the estate of your late father, you are hereby advised to avail either the Expanded Abatement Program under Rev. Regs. No. 3-2007 or the Improved Voluntary Assessment Program (IVAP) under Rev. Regs. No. 18-2006 in order to settle the estate tax liability of the same. Both programs will end on June 29, 2007. Very truly yours, Commissioner of Internal Revenue By: (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service