BIR Ruling [DA-409-00]

November 27, 2000 BIR RULING [DA-409-00] 90 (B) (C) & 91 (B) DA-260-2000 Mr. Ramon S. Medina 3137 Camagong Street United Paraaque Subdivision 2 Paraaque City S i r : This refers to your letters dated July 18, 2000 and August 4, 2000 requesting on behalf of the heirs of the late Alice Oblenda Sheker for an extension of time to file the estate tax return pursuant to Section 90 (C) of the Tax Code of 1997 and at the same time an extension of five (5) years within which to pay the estate tax due thereon pursuant to Section 91 (B) thereof. It is represented that the late Alice Oblenda Sheker, single, died on March 28, 2000 a resident of St. Mary Street, Maria Cristina Subdivision, Iligan City; that she is survived by her sister Victoria and brother Philippe; that she left a Last Will and Testament designating Victoria and her children as the heirs to her properties located in Iligan City; that upon learning this, you consulted your family friends on what to do considering that you are from Manila and are not familiar with the location of the properties and not to mention the process involved to claim the said inheritance; that you were advised to file a Petition for Probate Hearing before the Court in Iligan City, and pay the estate/inheritance taxes and other fees within six (6) months from the date of death of the decedent; that you have barely two (2) months to locate the said properties, know its values, file the petition before the Court in Iligan and pay the required taxes; that your problem is compounded by the fact that you are not a well-to-do family, thereby, finding it extremely difficult to raise the funds for the Court proceedings and in paying the taxes due thereon; and that in addition thereto, the peace and order situation has caused a lot of apprehension on the safety of your family members in going to Iligan City to process the necessary documents/papers. 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. Considering that you have a difficulty in determining the entire estate of the late Alice Oblenda Sheker, your request for an extension of thirty (30) days counted from September 28, 2000, which is the last day for the filing of the estate tax return of the decedent, is hereby granted. Accordingly, the filing of the said estate tax return is hereby extended up to October 28, 2000 pursuant to Section 90 (C) of the Tax Code of 1997. Moreover, your request for an extension of five (5) years reckoned from September 28, 2000 within which to pay the estate tax is hereby granted pursuant to Section 91 (B) of the same Code. HTaIAC 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 Alice Oblenda Sheker. 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) 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 deems necessary conditioned upon the payment of the estate tax in accordance with the terms of the 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