BIR Ruling [DA-286-00]

July 19, 2000 BIR RULING [DA-286-00] 97; 068-98 DA-286-2000 Mr . Crispulo O . Agayan Blk. 2, Lot 9, Phases 5-D Balboa St., Vista Verde Executive Village Felix Avenue, Cainta, Rizal S i r : This refers to your letter dated July 19, 2000 stating that your wife, Bernardina A. Allbatiera-Agayan died in Abha, Saudi Arabia on June 19, 2000; that her remains is now at the St. Ignatius Funeral Parlor along Boni Serrano St., Cubao, Quezon City and scheduled for shipment to her hometown in Sogod, Southern Leyte on July 19, 2000; that at the time of her death, she had a bank deposit of Two Hundred Sixteen Thousand Five Hundred Eighty Two Pesos and Thirty Three Centavos (P216,582.33) with the Rizal Commercial Banking Head Office in Makati City under Savings Account No. 3-000-40487-9; that the bank will not release any amount unless our Office issue an authority in your favor to withdraw from the account of your wife pending settlement of her estate; and that in support of your request, you submitted to this Office the following documents: 1. Certificate of Death; 2. RCBC Passbook with Serial No. 168194; and 3. Marriage Contract. In reply, please be informed that pursuant to Section 97 of the Tax Code of 1997, pertinent portion of which states: "xxx xxx xxx "If a bank has knowledge of the death of a person, who maintained a bank deposit alone, or jointly with another, it shall not allow any withdrawal from the said deposit account, unless the Commissioner has certified that the taxes imposed thereon by this Title have been paid: Provided, however , that the administrator of the estate or any one (1) of the heirs of the decedent may, upon authorization by the Commissioner, withdraw an amount not exceeding twenty thousand pesos (P20,000.00) without the said certification. . ." Based on the foregoing, it is clear that unless a certification has been issued by the Commissioner that the estate tax has been paid, only the amount of P20,000.00 may be authorized by the Commissioner to be withdrawn from the bank account of the deceased. IDTHcA Such being the case, you are hereby authorized to withdraw the amount of P20,000.00 from the bank account maintained by the decedent with Rizal Commercial Banking Corporation. (BIR Ruling No. 068-98 dated may 21, 1998) This ruling is being issued on the basis of the foregoing facts as represented. However, if upon investigation, it will be disclosed that the facts are different, then this ruling shall be considered null and void. Very truly yours, Commissioner of Internal Revenue By: (SGD.) LILIAN B. HEFTI Deputy Commissioner Legal and Inspection Group