BIR Ruling [DA-341-98]

July 27, 1998 BIR RULING [DA-341-98] Mr. Victor T. Cabrera 2 Batangas Street San Francisco del Monte Quezon City S i r : This refers to your letter dated June 22, 1998 requesting on behalf of the heirs of the late Fernando C. Marasigan for an extension of two (2) years within which to pay the estate tax due on the transmission of the said estate to the heirs pursuant to then Section 84(b) of the Tax Code, as amended [now Section 91(B) of the Tax Code of 1997]. cdt It is represented at the late Fernando C. Marasigan died intestate on December 30, 1997 in Manila, leaving two (2) parcels of land together with the improvements thereon, more particularly described as follows: Property TCT No. Area Location Land RT-92502(111062) 463.50 sq. m. Quezon City Land RT-524(23780) 375 sq. m. Batangas City that you have filed the estate tax return for the properties left by the decedent and were assessed a total amount of P275,210.00; that you are constrained to make this request for the reason that the heirs are not in a position to raise the amount in a very short time as this amount of P275,210.00 could only be raised from the proceeds of the rentals from the apartments left by the decedent in Quezon City. In reply, please be informed that Section 84(b) of the Tax Code, as amended [now 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 assessments 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 two (2) years within to pay the estate tax due thereon is hereby granted. Thus, you are given until December 30, 1999 to pay the estate tax due on the estate of the late Fernando C. Marasigan. LLpr 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.) BEETHOVEN L. RUALO Commissioner of Internal Revenue