Atty. Maricel L. Baltazar

May 20, 2008 BIR RULING [DA-307-08] 90 (C); DA-636-2007 Atty. Maricel L. Baltazar 25 Floor, 88 Corporate Center Senedo cor. Valero Street Salcedo Village Makati City M a d a m : This refers to your letter dated April 28, 2008 requesting on behalf of the heirs of the late Atty. Benigno Peralta Pulmano for an extension of thirty (30) days within which to file the estate tax return and two (2) years to pay the estate tax due thereon. It is represented that the late Atty. Benigno Peralta Pulmano died intestate on November 12, 2007; that the heirs would like to request for an extension of time to file the estate tax return considering the difficulty of ascertaining the details of and gathering the necessary documents concerning whatever properties may have been left by the decedent and constituting part of his estate; that it appears that some properties of the estate consist of lots which remain under the name of the decedent's siblings or relatives as these are properties that have been likewise inherited and have remained undivided; that the documents of title for which are still being located or requested from relatives concerned; that the process of locating and verifying the certificates of title over these properties has been cumbersome as these properties are located in different provinces outside Metro Manila where the heirs of the decedent reside, namely: Pangasinan, La Union and Mountain Province; that owing to the costly medical expenses of the decedent, it appears that money that was left by the decedent is unlikely to fully cover whatever taxes may be due and while there are other properties left, they could not be readily sold as their certificates of title are still being located while the other are still undivided properties, making it impossible to immediately sell the same to be able to raise funds to pay the tax due; that most of the properties that have been identified are agricultural lots rather than commercial lots, and it will take some time to dispose of these properties. 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 extra-judicially pursuant to Section 91 (B), supra . Based on the aforestated justifiable reason, your request for an extension of thirty (30) days counted from May 12, 2008, which is the last day for filing of the estate tax return is hereby granted. Accordingly, the filing of the said estate tax return of the decedent is hereby extended up to June 12, 2008 pursuant to Section 90 (C) of the Tax Code of 1997. Moreover, your request for an extension of two (2) years within which to pay the estate tax due is also granted. IN VIEW OF THE FOREGOING, this Office has decided to forego within the two-year period the imposition of the surcharge and penalties on the estate tax due on the transmission of the estate of the late Atty. Benigno Peralta Pulmano, 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, (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service