BIR Ruling [DA-480-05]

November 24, 2005 BIR RULING [DA-480-05] 90 (C) & 91 (B) Castillo Laman Tan Pantaleon & San Jose Law Offices The Valero Tower, 122 Valero Street, Salcedo Village 1227 Makati City Attention: Attys. Maria Victoria D. Sarmiento and Angelica M. Benedicto Gentlemen : This refers to your letter dated August 29, 2005 requesting on behalf of your client, Mrs. Kim Loan Yambao, the widow and the legal heir of Mr. Teofilo N. Yambao, for an extension of thirty (30) days from September 27, 2005 or until October 27, 2005, to file the Estate Tax Return of the decedent in accordance with Section 90 of the National Internal Revenue Code, as amended. It is represented that at present, you are undertaking the inventory of the Estate; that you are having difficulty in locating all the properties as Mr. Yambao lived alone and did not keep organized files of his estate; that there has been difficulty in obtaining information as to the extent of the estate as well as obtaining the legally required consents specifically to inquire into bank deposits/accounts because all the legal heirs of Mr. Yambao reside abroad and do not keep constant communication with each other; and that you are unable to file the Estate Tax Return on or before its due date of September 27, 2005. 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 September 27, 2005, which is the last day for filing of the estate tax return of the late Mr. Teofilo N. Yambao, is hereby granted. Accordingly, the filing of the said estate tax return of the decedent is hereby extended up to October 27, 2005 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 Mr. Teofilo N. Yambao 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. ISDHcT Very truly yours, Commissioner of Internal Revenue By: (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service