MP Batoon & Associates

April 26, 2007 BIR RULING [DA-267-07] Section 91 (B); DA-258-98 dtd. 06/29/98 MP Batoon & Associates Wambat Center, 121 Halcon Street La Loma, Quezon City Attention: Marjorie Ines P. Batoon, C.P.A. Madame : This refers to your letter dated March 29, 2007, requesting for an extension of time to file and pay the estate tax return on the estate of your aunt, BLESILDA P. SUPNET, who died on October 21, 2006, at Quezon City, since the estate of the deceased is under judicial proceedings for the probate of her Last Will and Testament in court, and due to the pendency of the case in court, you may not be able to file and pay the tax due within the six (6) months prescriptive period. In reply, please be informed that pursuant to Section 91 (B) of the Tax Code of 1997, which provides, viz: "SEC. 91. Payment of Tax. xxx xxx xxx "(B) Extension of Time when the Commissioner finds that the payment on the due date of the estate tax or of any part thereof would imposed 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." AaDSTH Accordingly, in view of the aforesaid justifiable reasons, your request for extension from April 21, 2007 to April 21, 2012, within which to pay the estate tax due thereon is hereby granted. It shall be understood, however, that the estate shall be liable for the corresponding interests that have accrued thereon up to the time of payment of the estate tax due on the transmission by the said estate of the properties in favor of the heirs pursuant to Section 249 of the Tax Code of 1997. (BIR Ruling No. DA-285-98 dated June 29, 1998) Very truly yours, (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service