BIR Ruling [DA-270-98]

June 26, 1998 BIR RULING [DA-270-98] Mr. Eusebio Tiong 80 Jose Abad Santos Street Heroes Hill Quezon City S i r : This refers to your letter dated January 27, 1998 requesting on behalf of the heirs of the late Shi Gim Ho for an extension of time within which to pay the corresponding estate tax due on the transmission of the said estate to the heirs pursuant to Section 91(B) of the Tax Code of 1997. LexLib It is represented that you are the executor of the estate of the late Shi Gim Ho who died on January 4, 1998 and with last residence address at Room 311, Whitehasco Condominium, 420 G. Araneta Avenue, Quezon City; that as the executor of the said estate, you are constrained to make this request for the reason that the settlement of the estate is now subject of probate proceedings before Branch 92 of the Quezon City Regional Trial Court docketed under Case No. Q94-20519 entitled "Allowance of the Will of Shi Gim Ho Shi Gim Ho, Petitioner." In reply, please be informed that Section 91(B) of the Tax Code of 1997 reads: "(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, in view of the aforestated justifiable reason, your request for an extension of five (5) years from July 4, 1998 to July 4, 2003 within which to pay the estate tax due thereon is hereby granted but that the estate tax return should be filed within six (6) months from January 4, 1998. LibLex It shall be understood that the estate shall be liable to the corresponding interest that have accrued thereon up to the time of payment of the estate tax. Very truly yours, (SGD.) LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue