BIR Ruling [DA-483-03]

December 10, 2003 BIR RULING [DA-483-03] Sec. 90 105-99 dated July 13, 1999 Ms. Noneth Ella Gob 068 Area C, Upper Talanay Batasan Hills, Quezon City M a d a m : This refers to your letter dated April 2, 2002 requesting, on behalf of the heirs of the late Diosdado A. Ella, for a ruling as to whether or not the said estate which consists merely of a bank account in the total amount of P38,430.71 is exempt from the payment of estate tax. It is represented that the late Diosdado A. Ella died without a will on January 19, 2002 in Quezon City; and that at the time of his death the only property left by him is a bank account with the Landbank of the Philippines (LBP), Commission on Audit Branch, Commonwealth, Quezon City, bearing Savings Account Number 1691-1016-10 in the amount of P38,430.71. In reply thereto, please be informed that Section 90(A) of the Tax Code of 1997 provides "Sec. 90. Estate Tax Returns . (A) Requirements. In all cases of transfers subject to the tax imposed herein, or where, though exempt from tax, the gross value of the estate exceeds Two hundred thousand pesos (P200,000), or regardless of the gross value of the estate, where the said estate consists of registered or registrable property such real property, motor vehicle, shares of stock or other similar property for which a clearance from the Bureau of Internal Revenue is required as a condition precedent for the transfer of ownership thereof in the name of the transferee, the executor, or the administrator, or any of the legal heirs, as the case may be, shall file a return under oath in duplicate, setting forth: "(1) the value of the gross estate of the decedent at the time of his death, or in case of a nonresident, not a citizen of the Philippines, of that part of his gross estate situated in the Philippines; "(2) the deductions allowed from gross estate in determining the estate as defined in Section 86; and "(3) such part of such information as may at the time be ascertainable and such supplemental data as may be necessary to establish the correct taxes." Considering that the gross estate of the late Diosdado A. Ella consists merely of a bank account in the total amount of P38,430.71 which is even lower than the P200,000.00 tax exempt portion of the net estate bracket as imposed under Section 84 of the same Code, the estate of the late Diosdado A. Ella is indeed exempt from estate tax. However, the executor, administrator or any of the legal heirs of the late Diosdado A. Ella shall be required to file the corresponding estate tax return within six (6) months from the decedent's death with the Revenue District Officer (RDO) in which the decedent was domiciled at the time of his death pursuant to Section 90(D) of the Tax Code of 1997. ( BIR Ruling No. 105-99 dated July 13, 1999 ) This ruling is being issued on the basis of the foregoing facts as represented. However, if upon investigation, it will be disclosed that the facts are different, then, this ruling shall be considered null and void. aCHDST Very truly yours, (SGD.) JOSE MARIO C. BUAG Deputy Commissioner Legal & Inspection Group