BIR Ruling [DA-388-99]

July 8, 1999 BIR RULING [DA-388-99] Guillermo A. Cuadra Brgy. Mayamot, Antipolo Rizal, Metro Manila S i r : This refers to your letter dated January 12, 1998 and February 2, 1998, requesting on behalf of the Estate of the late Pilar M. Cuadra, for an extension of time within which to file its estate tax return and to pay the same. It appears that Pilar M. Cuadra died on July 12, 1997; that due to financial difficulty you were not able to get the documents needed in filing the estate tax return which is in Davao; that when you had a chance to go to Davao still you were not able to travel since your wife got sick and there is no one to take care of her; that due to the above-mentioned reasons you were unable to file the estate tax return seasonably and that you are also anticipating that you will not be able to pay the same timely; that you are hereby requesting this Office for an extension of thirty days from the time within which to file said return, which is thirty (30) days from January 12, 1998; that in addition thereto, you are also requesting for an extension of two (2) years within which to pay the estate tax. In reply, please be informed that your request for an extension of time within which to file the estate tax return of the late Pilar M. Cuadra is hereby denied. This Office could grant such extension only when the request of the taxpayer is filed within the period within which the taxpayer is required to file the estate tax return, which is within six (6) months after the death of the decedent and not within thirty (30) days extension after the lapse of the six months period for filing. However, your request for an extension of time to pay the estate tax is hereby granted pursuant to Section 91(B) of the Tax Code of 1997 which provides, viz : " Extension of time . When the Commissioner of Internal Revenue finds that the payment on the due date of the estate tax or of any part thereof would impose undue hardships upon the estate or any of the heirs, he may extend the time for payment of such tax or any part thereof not 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. In such case, the amount in respect of which the extension is granted shall be paid on or before the date of expiration of the period of the extension, and the running of the Statute of Limitations for assessment provided in Section 203 of this Code shall be suspended for the period of any such extension." It is understood, however, that the estate shall be liable to the corresponding interest that have accrued thereon up to the time of payment of the estate tax due on the transmission of the said estate to the heirs. Moreover, pursuant to the last paragraph of Section 91(B) of the Tax Code of 1997, you are hereby required to furnish a bond in such amount not exceeding double the amount of the tax and with such sureties conditioned upon the payment of the said tax in accordance with the terms of the extension. aScITE 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, (SGD.) BEETHOVEN L. RUALO Commissioner of Internal Revenue