BIR Ruling [DA-466-98]

October 28, 1998 BIR RULING [DA-466-98] Atty. Amado A. Colon 75 M.R. Luna Street BF Homes Paraaque City S i r : This refers to your letter dated October 9, 1998 requesting on behalf of your client, the Estate of Adelaida Arive Vda. de Elises, for an extension of thirty (30) days within which to file the estate tax return and two (2) years to pay the estate tax due thereon. It is represented that the deceased died on May 27, 1998, leaving a holographic will now under probate proceeding before the RTC of Sta. Cruz, Laguna, Branch 91, in SP. Proc. No. 1296; that the person presently administering the estate and who is seeking to be appointed as administratrix declares that she is certain that the filing of the estate tax return and payment of the tax within six (6) months from the decedent's death would impose undue hardship upon the estate, or any of the heirs due to the following: (a) difficulties encountered in verifying the titles to the real properties and the disparity between the description found in the TCT and those in the tax declarations; (b) the estate has not much cash and could hardly pay the funeral expenses, much more sustain the continuing administrative and judicial expenses; (c) the decedent was 78 years old at the time of her death, sickly, left no issue, and no regular source of income; and (d) the only possible way to raise money to pay the tax is to borrow or sell some of the estate's real properties; that her only nearest relative (brother) had left the Philippines more than 40 years ago and had not returned since then; that the real properties could not be sold to raise the needed money to pay the estate tax since the probate court has not yet appointed an administrator who can legally execute the deed of sale; and that at any rate, it is very difficult to find a buyer to the property because of the present economic crunch and the far-flung location of the realties. In reply, please be informed that in view of the aforementioned valid and justifiable grounds, your request for an extension of thirty (30) days to file the estate tax return and two (2) years to pay the estate tax reckoned from November 27, 1998, the date fixed for the filing and payment thereof, is hereby granted pursuant to Sections 90 and 91 of the Tax Code of 1997. It is, however, understood that the estate of your client shall be liable to the corresponding interest that have accrued up to the time of the payment of the estate tax. Very truly yours, (SGD.) BEETHOVEN L. RUALO Commissioner of Internal Revenue