Ms. Lynnette A. Desphy

August 10, 2007 BIR RULING [DA-443-07] Section 91 (B) DA-258-98 dtd. 06/29/98 Ms. Lynnette A. Desphy 26 Christine St., Parkway Village Brgy. Apolonio Samson, Quezon City M a d a m : This refers to your letter dated May 11, 2007, in behalf of your mother (the widow) and your other co-heirs in the estate of the late JUPITER LINDOG DESPHY, who died on November 15, 2006, requesting an extension of 180 days within which to file the estate tax return and pay the estate tax due thereon to give you time to locate the titles and other documents of the personal and real properties left by the deceased. In reply, please be informed that Sections 90 (C) and 91 (B) of the Tax Code of 1997 provide, viz: "SEC. 90. Estate Tax Returns . xxx xxx xxx "(C) Extension of Time . The Commissioner shall have authority to grant, in meritorious cases, a reasonable extension not exceeding thirty (30) days for filing the return." "SEC. 91. Payment of Tax . xxx xxx xxx "(B) Extension of Time . When the Commissioner finds that the payment on the due date of the estate tax or of any part thereof would impose undue hardship 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 the expiration of the period of the extension, and the running of the Statute of Limitations for assessment as provided in Section 203 of this Code shall be suspended for the period of any such extension." Accordingly, in view of the aforesaid justifiable reasons, your request for extension of time from May 15 to November 15, 2007, within which to pay the estate tax due thereon is hereby granted. However, we are granting you a 30-day extension within which to file the estate tax return. AEIcSa It shall be understood, however, that the estate shall be liable for the corresponding interests that have accrued thereon up to the time of payment of the estate tax due on the transmission by the said estate of the properties in favor of the heirs pursuant to Section 249 of the Tax Code of 1997. (BIR Ruling No. DA-285-98 dated June 29, 1998) Very truly yours, (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service