BIR Ruling [DA-361-00]

October 19, 2000 BIR RULING [DA-361-00] 90 (B) (C) 260-200 Sycip Salazar Hernandez & Gatmaitan Sycip law-All Asia Capital Center 105 Paseo de Roxas, Makati City Attention: Atty . Alexandra Victoria G . Bengson and Atty . Carlos Roberto Z . Lopez Gentlemen : This refers to your letter dated June 20, 2000 requesting on behalf of the heirs of Mrs. Hermila Felicidad S. Magallanes, for an extension of thirty (30) days within which to file the estate tax return, pursuant to Section 90(C) of the Tax Code of 1997. IDAaCc It is represented that Mrs. Magallanes died on August 1, 1999; that Mrs. Magallanes is a non-resident alien who died in New York, U.S.A. leaving several properties in the Philippines; and that although you have filed the notice of Mrs. Magallanes' death with the Bureau of Internal Revenue on September 30, 1999, you are still in the process of identifying and conducting the valuation of her gross estate which consists of several properties, both in Davao and in Metro Manila In reply, 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 days for filing the return may be granted by the Commissioner of Internal Revenue. The estate tax return of Mrs. Magallanes should have been filed as of February 1, 2000 which filing, can be extended to March 1, 2000 based on meritorious and reasonable grounds, provided that, request for extension should have been filed before the expiration of the six (6) month period. Considering that it was filed beyond the stated deadline, your request for extension of thirty (30) days within which to file the estate tax return, cannot be granted. In view of the foregoing, the estate shall be liable to the surcharge and penalties that may be imposed as a consequence of such late filing and shall likewise be liable for the payment of the corresponding interest that have accrued thereon up to the time of filing of the estate tax return pursuant to Section 249 of the Tax Code of 1997. Very truly yours, Commissioner of Internal Revenue (SGD.) LILIAN B. HEFTI Deputy Commissioner Legal and Inspection Group