BIR Ruling [DA-324-04]

June 15, 2004 BIR RULING [DA-324-04] 90 (C) & 91 (B) Ricardo E. Reyes & Associates 106 Villareal Street, Gulod Novaliches, Quezon City Attention: Atty. Ricardo E Reyes Gentlemen : This refers to your letter dated June 2, 2004, stating that the deceased Remedios S. Sison died intestate on December 16, 2003 at Quezon City, leaving her only son, Gerardo S. Sison, as her heir; that she left as her estate real and personal properties with an aggregate value of P6,019,388.30; that the six (6) months period provided by the Tax Code will expire on June 15, 2004; that the you cannot file the estate tax return and pay the estate tax due thereon because the estate has no sufficient liquid resources, hence, you are requesting for an extension of time to file the estate tax return and, likewise, an extension of time to pay the estate tax due. 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. DIETHS Based on the aforestated justifiable reason, your request for an extension of time within which to pay the estate tax is hereby granted pursuant to Section 91 (B) of the Tax Code of 1997. Accordingly, the estate tax due on the estate of Remedios S. Sison may be paid up to two (2) years counted from June 15, 2004. On the other hand, under Section 90(C) of the Tax Code, a thirty-day extension is granted as an extension of the period within which to file the estate tax return, thus, considering that the last day for filing the estate tax return of the estate of Remedios S. Sison is on June 15, 2004, the period within which to file the same is hereby extended up to July 15, 2004. Such being the case, you are hereby directed to immediately file the estate tax return in order to stop the running of the interest for late filing thereof. Moreover, in view of the above favorable action to your request for an extension of two (2) years within which to pay the estate tax, this Office has decided to forego the imposition of the surcharge and penalties on the estate tax due on the transmission of the estate of Remedios S. Sison. 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 aforesaid estate tax pursuant to Section 249 of the Tax Code of 1997. ( BIR Ruling No. DA-260-2000 dated June 9, 2000 ) Very truly yours, Commissioner of Internal Revenue By: (SGD.) MILAGROS V. REGALADO Assistant Commissioner Legal Service