BIR Ruling [DA-396-00]

November 20, 2000 BIR RULING [DA-396-00] 90 (B) (C); 91 (B) DA 260-2000 Mr. Edmund E. Olleres 504 EDSA. Cubao, Quezon City S i r : This refers to your letter dated September 15, 2000 requesting for an extension of One Hundred Eighty (180) days within which to file the estate tax return, as well as another ninety (90) day extension to pay whatever tax that may be due from your late parents, Adolfo C. Olleres and Leticia E. Olleres, who both passed away last April 13, 2000 and June 22, 2000, respectively, on the ground that two of the heirs are abroad and you are still in the process of determining the shares of each heir and still needs time to convert the real properties left by your deceased parents into cash. In reply, 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 decedents' 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. Considering that you are still in the process of determining the shares of each heir and needs time to convert the real properties left by your deceased parents into cash, your request for an extension of time within which to file the estate tax return of the late Adolfo C. Olleres and Leticia E. Olleres is hereby granted but only for thirty (30) days counted from October 13, 2000 and December 22, 2000, respectively, the last days for the filing of said estate tax returns. Accordingly, the filing of the said estate tax returns of the decedents is hereby extended up to November 13, 2000 and January 22, 2001, respectively. Moreover, your request for an extension of (90) days reckoned from November 13, 2000 and January 22, 2001, respectively within which to pay the estate tax is hereby granted pursuant to Section 91 (B) of the Tax Code of 1997. In view of the foregoing, this Office has decided to forego the imposition of the surcharge and compromise penalties on the estate tax due on the transmission of the estate of the late Adolfo C. Olleres and Leticia E. Olleres but only up to the extended date or payment of the subject tax. However, it shall be understood that the estate shall be liable to the corresponding interest that has accrued thereon up to the time of the filing of the return and the payment of the estate tax due on the transmission of the said estate to the heirs pursuant to Section 249 of the Tax Code of 1997. (BIR Ruling No. DA 960-2000 dated June 9, 2000) TAHcCI 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 of Internal Revenue deems necessary conditioned upon the payment of the estate tax in accordance with the terms of the extension. Very truly yours, Commissioner of Internal Revenue By: (SGD.) LILIAN B. HEFTI Deputy Commissioner Legal & Inspection Group