BIR Ruling [DA-257-99]

April 26, 1999 BIR RULING [DA-257-99] Ms. Victoria S. Mina 3788 Aster Road Sunvalley Subd. Paraaque City M a d a m : This refers to you letter dated January 29, 1999 jointly signed by Mr. Manuel L. Sales, requesting on behalf of the Estate of the late Felisa Mayo Leyesa for an extension of time to file the estate tax return and to pay the estate tax pursuant to Section 90(C) and 91(B) of the Tax Code of 1997 and at the same for waiver of the 25% surcharge. prcd It is represented that the late Felisa Mayo Leyesa died on October 6, 1998 at the Makati Medical Center; that she left two parcels of land one parcel in San Juan Heights Subdivision, San Juan, Rizal, identified as Lot 23, Block 98 covered by TCT No. 16694 with an area of 470 sq.m. and the other in Barangay Tangob, Lipa City covered by TCT No. T-109620 with an area of 6,560 sq.m.; that the estimate of the estate tax due on the said properties and the tentative computation amounts to P1.5 Million more or less; that you are still liquidating borrowed amounts spent for the hospitalization and funeral expenses of your late mother; and that one co-heirs is residing abroad and it will take sometime to complete your extrajudicial settlement. In reply, please be informed that in view of the aforestated justifiable reason your request for an extension of thirty (30) days up to May 6, 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 assessments as provided in Section 203 of this Code shall be suspended for the period of any such extension. cdll xxx xxx xxx." Accordingly, since the payment of the estate tax or any part thereof on the due date would impose undue hardship upon the estate or any of the heirs, your request for an extension of two (2) years within which to pay the estate tax or any part thereof due on the transmission of the estate of the late Felisa Mayo Leyesa, is hereby granted. 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 late Felisa Mayo Leyesa's estate to the heirs. However, it shall be understood that the estate shall be liable to the corresponding interest that have accrued thereon up to the time of filing of the estate tax return and payment of the estate tax. (BIR Ruling No. DA-321-98 dated July 17, 1998) cdti Very truly yours, (SGD.) BEETHOVEN L. RUALO Commissioner of Internal Revenue