BIR Ruling [DA-370-00]

October 25, 2000 BIR RULING [DA-370-00] 91 (B) Mr. Vicente T. Fernandez Rm. 301 Maritima Building 117 Dasmarias Street, Binondo Manila S i r : This refers to your letter dated September 21, 2000 requesting for an extension of one (1) year within which to pay the estate tax due on the transmission of the estate of the late Carlos Pedro Martinez Fernandez to his heirs pursuant to Section 91(B) of the Tax Code of 1997. It is represented that the late Carlos Pedro Martinez Fernandez died on February 16, 2000, a resident of No. 43 Pili Avenue, Forbes Park, Makati City; that you were given by the Regional Director of Revenue Region No. 8, Makati City, an extension of one (1) month within which to file the estate tax return counted from August 16, 2000, which is the last day for the filing of the estate tax return of the decedent; that on September 15, 2000, you made an initial payment of your estate tax liability in the amount of P4,550,605.00 under Official Receipt No. 2950120 to the Development Bank of the Philippines; that after payment was made, you had a written agreement with the Regional Director of Makati that the balance of the estate tax in the amount of P4,403,868.00, including the computed interest, will be paid on December 16, 2000; that due to the financial difficulties of the heirs, with only P753,068.80 cash left by the deceased, and of their difficulty in settling the claims against the estate, you are constrained to request for an extension of one (1) year counted from September 16, 2000 within which to pay the balance of the estate tax. TIcEDC In reply, please be informed that in view of the aforementioned valid and justifiable grounds, your request for an extension of one (1) year within which to pay the estate tax reckoned from September 16, 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 Carlos Pedro Martinez Fernandez 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 and with such sureties the Commissioner deems necessary conditioned upon the payment of the estate tax in accordance with the terms of this 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. Very truly yours, Commissioner of Internal Revenue By: (SGD.) LILIAN B. HEFTI Deputy Commissioner Legal & Inspection Group