BIR Ruling [DA-360-00]

October 19, 2000 BIR RULING [DA-360-00] Sec. 90 (C) Ortega, Del Castillo, Bacorro, Odulio Calma & Carbonell ALPAP 1 Bldg. 5th & 6th Floors 140 L.P. Leviste Street, Salcedo Village Makati City Attention: Atty . Loreta R . Garcia Gentlemen : This refers to your letter dated July 19, 2000 requesting, on behalf of the legal heirs of the late Harry Grant Fullen, for an extension of thirty (30) days counted from July 19, 2000 within which to file the estate tax return. It is represented that the late Harry Grant Fullen, an American citizen, died on February 10, 1998 in Washington, United States of America; that he left some properties in the Philippines; that on May 27, 1998, his last Will and Testament was admitted to probate in King County Superior Court of Seattle Washington, U.S.A.; that Elise Marie Fullen Farmer was named executor therein; that not being a resident of the Philippines Mrs. Farmer appointed your law firm as attorney-in-fact to manage and conduct all her affairs in her capacity as such executor, and in her name and on her behalf, to do and execute all acts, deeds, matters in or about the estate of the testator as are within the jurisdiction of the courts of the Philippines; that a Petition to Reprobate the Last Will and Testament of Harry Grant Fullen with urgent Application for the Appointment of a Special Administrator was filed for and in behalf of Mrs. Farmer; that on August 12, 1999, the application for the appointment of a special administrator was granted; and that on October 8, 1999, the Last Will and Testament of Harry Grant Fullen was allowed by the Regional Trial Court of Makati City, Branch 65. 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 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. In view of the foregoing, your request for an extension of thirty (30) days within which to file the estate tax return on the estate of the late Harry Grant Fullen is hereby denied. The law allows in meritorious cases, a reasonable extension at the maximum of thirty (30) days only for filing the return. The said 30-day extension is reckoned from the last day of the six months period fixed for the filing of the estate tax return which is counted, on the other hand, from the date of the decedent's death. Considering that Harry Grant Fullen died on February 10, 1998, the last day for filing of his estate tax return was on August 10, 1998, thus, counting thirty days therefrom the extension allowed under the law has already expired on September 10, 1998 thereby making this request for an extension of time to file the estate tax return moot and academic. As a consequence of this denial, the corresponding penalty, surcharge and interest for late filing of the estate tax return shall be imposed. aHCSTD Very truly yours, Commissioner of Internal Revenue By: (SGD.) LILIAN B. HEFTI Deputy Commissioner Legal & Inspection Group