BIR Ruling [DA-424-00]

December 12, 2000 BIR RULING [DA-424-00] 90 (B) (C) & 91 (B) DA 260-2000 Mrs. Nora Q. Nocon 52 Doa Annie Street Alabang Hills Village Muntinlupa City M a d a m : This refers to your letter dated September 26, 2000 requesting on behalf of the heirs of the late Antonio A. Nocon for an extension of six (6) months counted from October 22, 2000 within which to file the estate tax return and pay the estate tax due thereon pursuant to Sections 90 (C) and 91 (B) of the Tax Code of 1997. It is represented that your husband, the late Antonio A. Nocon, died on April 22, 2000 a resident of No. 52 Doa Annie Street, Alabang Hills Village, Muntinlupa City; that due to the suddenness of his death, you were unable to attend to many personal and family matters attendant to his death; that it was only last week that you were informed that you have to file the corresponding estate tax return and pay the estate tax due thereon; and that you are leaving for a prolonged visit to your sister in the United States of America, thus, you were constrained to make this request for an extension of time to file the estate tax return and pay the estate tax. 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. HTDAac Considering that you were just recently informed of your obligation to file the estate tax return and that presumably the entire estate of the late Antonio A. Nocon is not yet determined due to the time constraint, your request for an extension of time within which to file the estate tax return is hereby granted but only for one (1) month counted from October 22, 2000, which is the last day for the filing of the estate tax return of the decedent. Accordingly, the filing of said estate tax return is hereby extended up to November 22, 2000 pursuant to Section 90 (C) of the Tax Code of 1997. Moreover, your request for an extension of six (6) months reckoned from October 22, 2000 within which to pay the estate tax is hereby granted pursuant to Section 91 (B) of the same Code. 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 Antonio A. Nocon. However, it shall be understood that the estate shall be liable for the corresponding interest that have accrued thereon up to the time of payment of the estate tax 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 the Commissioner 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