BIR Ruling [DA-453-05]

November 9, 2005 BIR RULING [DA-453-05] Atty. Bienvenido J. Medel # 18 Horizon St. River View Park Concepcion Dos, Marikina City S i r : This refers to your undated letter requesting in behalf of your clients, the heirs of Estate of JUANITO L. TAYAG, an extension of time to file the corresponding Estate Tax Return and an extension of two (2) years to pay the estate tax due on the transmission by the said estate of its properties in favor of the heirs pursuant to Section 91 (B) of the Tax Code of 1997. It could be ascertained from records that Juanito L. Tayag died intestate on March 24, 2005 at Baranca Itaas, Mandaluyong City; that the request for extension of time to file the estate tax return and pay the same within 2 years is due to the fact that you are still raising funds necessary for the payment of taxes due thereon and coupled by the fact that you are still in the process of collating documents relative thereto in the preparation of the returns. DcIHSa In reply, please be informed that Section 91 (B) of the Tax Code of 1997 provides, viz: "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 4 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." xxx xxx xxx Accordingly, in view of the aforesaid justifiable reasons, your request for extension of 2 years from September 24, 2005 to September 24, 2007, within which to pay the estate tax due thereon is hereby granted. It shall be understood, however, that the estate shall be liable for the corresponding interest that has 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