BIR Ruling [DA-460-06]

July 28, 2006 BIR RULING [DA-460-06] Sec. 90 Atty. Nicholas Felix L. Ty No. 34, 6th Street, New Manila Quezon City S i r : This refers to your letter received by this Office on June 30, 2006 requesting on behalf of your clients, the heirs of Edward Sun, a.k.a. Sun Fu Cheng, an extension of thirty (30) days within which to file the estate tax return and pay the estate tax due thereon. It is represented that the late Edward Sun died on January 2, 2006; the last day for filing the Estate Tax Return of the estate of the decedent is on July 2, 2006; that the heirs of the decedent are all based in Hong Kong; that they just recently finalized their Deed of Extra-Judicial Settlement thereby leaving them not enough time to finalize the estate tax return, hence, you are seeking for an extension of thirty (30) days within which to file the required Estate Tax Return and pay the estate tax due thereon. 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. Based on the aforestated justifiable reason, your request for an extension of thirty (30) days counted from July 2, 2006, which is the last day for filing of the estate tax return of the late Edward Sun is hereby granted. Accordingly, the filing of the said estate tax return of the decedent is hereby extended up to August 2, 2006 pursuant to Section 90 (C) of the Tax Code of 1997. In view of the foregoing, this Office has decided to forego within the 30-day period the imposition of the surcharge and penalties on the estate tax due on the transmission of the estate of the late Edward Sun to his heirs. However, it shall be understood that the estate shall be liable for the corresponding interest that has accrued thereon up to the time of payment of the estate tax pursuant to Section 249 of the Tax Code of 1997. CDEaAI Very truly yours, Commissioner of Internal Revenue By: (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service