BIR Ruling [DA-368-00]

October 23, 2000 BIR RULING [DA-368-00] 90 (B) (C) DA-260-2000 Castillo Laman Tan Pantaleon & San Jose Law Offices Valero Tower, 122 Valero Street Salcedo Village, Makati City Attention: Atty . Maria Victoria D . Sarmiento Gentlemen : This refers to your letter dated August 29, 2000 requesting on behalf of the heirs of the late Robert Young for an extension of one (1) month counted from September 2, 2000 within which to file the estate tax return and an extension of five (5) years within which to pay the estate tax due thereon pursuant to Sections 90(C) and 91(B) of the Tax Code of 1997. It is represented that the late Robert Young died intestate on March 2, 2000; that due to his untimely death, his heirs have not completely determined all his assets and liabilities up to this point in time; that based on their existing knowledge of the composition of the properties and liabilities of the decedent, the heirs are anticipating difficulty in filing the estate tax return within the six-month period from the decedent's death. In reply thereto, please be informed that under Section 90(B) and (C) of the Tax Code of 1997, the 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 cases 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 the heirs of the late Robert Young have difficulty in determining his entire estate, your request for an extension of time within which to file the estate tax return on their behalf, is hereby granted. Accordingly, the filing of the said estate tax return of the decedent is hereby extended up to October 2, 2000 pursuant to Section 90(C) of the Tax Code of 1997. 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 estate of the late Robert Young. However, it shall be understood that the estate shall be liable for 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. (BIR Ruling No. DA-260-200 dated June 9, 2000) On the other hand, the heirs' request for an extension of five (5) years within which to pay the estate tax could not as yet be granted, unless proof that the estate is settled through the courts be submitted to this Office, otherwise, the extension that will be allowed will not exceed two (2) years, in cases where the estate is settled extrajudicially. Moreover, the executor, or administrator, or beneficiary, as the case may be, is required to furnish a bond in such amount not exceeding double the amount of the tax and with such sureties as the Commissioner deems necessary conditioned upon the payment of the estate tax in accordance with the terms of the extension. This ruling is being issued on the basis of the foregoing facts as represented. However, if upon investigation, it will be disclosed that the facts are different, then this ruling shall be considered null and void. DHaEAS Very truly yours, Commissioner of Internal Revenue By: (SGD.) LILIAN B. HEFTI Deputy Commissioner Legal & Inspection Group