BIR Ruling [DA-354-00]

October 2, 2000 BIR RULING [DA-354-00] Sec. 90 (C) DA-260-2000; 253-2000 Mr. Benigno C. Coquia 175 D. Tuazon Avenue Quezon City S i r : This refers to your letter dated July 26, 2000 requesting, on behalf of the legal heirs of the late Florencio R. Coquia, for an extension of thirty (30) days counted from August 2, 2000 within which to file the estate tax return and one (1) within which to pay the estate taxes thereon. It is represented that the late Florencio R. Coquia died on February 2, 2000; that he is survived by his wife, Josefa G. Coquia and children, Benigno, Cristina, Florencio Jr., Gil and Justino; that he left some properties in Quezon City, Manila and Pangasinan; that you need additional time to process and finalize the extrajudicial settlement of the estate and raise the necessary funds to pay for the estate tax; and that your resources is spent for your mother, Josefa G. Coquia, who is in constant need of medical attention. DEcTIS 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. Considering that you need additional time to process and finalize the extrajudicial settlement of the estate and raise the necessary funds to pay for the estate tax due thereon, your request for an extension of thirty (30) days counted from August 2, 2000, which is the last day for filing of the estate tax return of the Florencio R. Coquia is hereby granted. Accordingly, the filing of the said estate tax return of the decedent is hereby extended up to September 1, 2000 pursuant to Section 90(C) of the Tax Code of 1997. Moreover, your request for an extension of one (1) year reckoned from August 2, 2000 within which to pay the estate tax is hereby granted pursuant to Section 91(B) of the same Code. In view of the foregoing, this Office has decided to forego the imposition of the surcharge and penalties on the estate tax due on the transmission of the late Florencio R. Coquia's estate to the heirs. However, it shall be understood that the estate shall be liable for the corresponding interest that have accrued thereupon up to the time of the payment of the estate tax pursuant to Section 249 of the Tax Code of 1997. (BIR Ruling No. DA 260-2000 dated June 9, 2000 and 253-2000 dated June 1, 2000) Moreover, the executor, or administrator, or beneficiary, as the case may be, is required to furnish a bond in such mount not exceeding double the amount of the tax conditioned upon the payment of the estate tax in accordance with the terms of this extension. Very truly yours, Commissioner of Internal Revenue By: (SGD.) LILIAN B. HEFTI Deputy Commissioner Legal & Inspection Group