BIR Ruling [DA-297-03]

September 10, 2003 BIR RULING [DA-297-03] 90 (C) Mariano C. Ereso, Esq. 149 Roxas Boulevard, Paraaque City S i r : This refers to your letter dated August 27, 2003 requesting on behalf of your clients, the Heirs of the late Benito S. Cua, for an extension of thirty (30) days within which to file the estate tax return and pay the estate tax due thereon. It is represented that the late Benito S. Cua died on March 7, 2003 in Pasig City; that your clients are still in the process of gathering the properties and confirming the liabilities of their deceased father as of the time of his death; and that you will not be able to file the estate tax return within the prescribed period, hence, you are constrained to seek a 30-day extension within which to file the required estate tax return and pay the estate tax due thereon. In reply thereto, 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 thirty (30) days counted from September 7, 2003, which is the last day for filing of the estate tax return of the late Benito S. Cua, is hereby granted. Accordingly, the filing of the said estate tax return of the decedent is hereby extended up to October 7, 2003 pursuant to Section 90(C) of the Tax Code of 1997. In view of the foregoing, this Office has decided to forego within the 30-day period the imposition of the surcharge and penalties on the estate tax due on the transmission of the estate of the late Benito S. Cua to his heirs. However, it shall be understood that the estate shall be liable for the corresponding interest that have accrued thereon up to the time of payment of the estate tax pursuant to Section 249 of the Tax Code of 1997. Very truly yours, Commissioner of Internal Revenue By: (SGD.) MILAGROS V. REGALADO Assistant Commissioner Legal Service