BIR Ruling [DA-384-00]

November 7, 2000 BIR RULING [DA-384-00] Sec. 90 (B) & (C) DA 260-2000 6-9-2000 Baniqued & Baniqued Suite 803, 8/F Jollibee Centre San Miguel Avenue, Ortigas Center Pasig City Attention: Atty . Terence Conrad H . Bello Gentlemen : This refers to your letter dated August 30, 2000 requesting, on behalf of the estate and legal heirs of the late Ma. Nympha H. Bello, for an extension of thirty (30) days counted from September 26, 2000 within which to file the estate tax return and pay the estate taxes due thereon. It is represented that the late Nympha H. Bello died unexpectedly on March 30, 2000; that while her heirs have exerted best efforts to make an inventory of the assets and liabilities of her estate, they have encountered some difficulty in locating certain vital documents needed to prepare an inventory of the estate and which are essential in determining the net estate subject to tax; that some of these documents include titles to properties, tax declarations and other documents evidencing ownership of properties, and evidence of outstanding indebtedness or liabilities; and that the heirs likewise need additional time to finalize the extrajudicial settlement of the estate. 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 if 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. caEIDA In view of the aforestated valid and justifiable reason, your request for an extension of thirty (30) days counted from September 26, 9000, which is the last day for filing of the estate tax return of the late Ma. Nympha H. Bello is hereby granted. Accordingly, the filing of the said estate tax return of the decedent is hereby extended up to October 26, 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 Ma. Nympha H. Bello. 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 260-2000 dated June 9, 2000) Very truly yours, Commissioner of Internal Revenue By: (SGD.) LILIAN B. HEFTI Deputy Commissioner Legal & Inspection Group