BIR Ruling [DA-369-00]

October 25, 2000 BIR RULING [DA-369-00] 91 (B) DA-253-2000 Arcadio R. Garcia and Associates Certified Public Accountants 3-1 Edificio Enriqueta Corner D. Tuason & Amoranto Sts. Sta. Mesa Heights, Quezon City Attention: Mr . Arcadio R. Garcia Partner Gentlemen : This refers to your letter dated June 21, 2000 requesting 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 of the late Fernando M. Zabarte pursuant to Section 91(B) of the Tax Code of 1997. It is represented that the late Fernando M. Zabarte died on October 17, 1999 and that you are constrained to make this request for the following reasons, viz: "1. The decedent who up to the time of his death was a resident of 201 Lantana Street, Quezon City, and died a bachelor at the age of 88; that before and at the time of his death, nobody keeps the record of his real and personal property; and that his heirs, a sister and a brother who are 91 and 73 years old respectively, are encountering difficulties in determining the properties to be included in his estate; SIacTE 2. Furthermore, some of the properties to be included in his estate could not be determined accurately as they also belonged to the Estate of his mother, the late, Asuncion M. Zabarte who died on October 29, 1977; 3. The settlement of his mother's estate is the subject of Special Proceeding case (Sp. Proc. No. Q-25234) which is pending since 1978 in Quezon City Regional Trial Court. 4. Initial date and information you have gathered showed that approximately 99% of the decedent's estate consist of real properties located in Metro Manila and in the province of Batangas; and 5. Considering the poor cash position of the estate and the difficulty of disposing real property nowadays, you expect that the estate tax due on the decedent's estate could not be settled within the near foreseeable future." that on April 5, 2000 you filed a request for an extension of time within which to file the estate tax return of the decedent; that it was your intention then to request at the same time for an extension of two (2) years within which to pay the estate tax, however, you forgot to mention it, hence, the filing of the instant request; that your request for an extension of time to file the estate tax return without the imposition of surcharge and compromise penalties but not the interest was granted up to May 17, 2000. THIASE In reply, please be informed that in view of the aforementioned valid and justifiable grounds, your request for an extension of two (2) years within which to pay the estate tax reckoned from April 17, 2000 is hereby granted without the corresponding surcharge and compromise penalties, pursuant to Section 91 of the Tax Code of 1997. However, it is understood that the estate of the late Fernando M. Zabarte shall be liable to the corresponding interest that may have accrued up to the time of the payment of the estate tax. 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 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