Ms. Lela B. Tato

September 14, 2007 BIR RULING [DA-491-07] Ms. Lela B. Tato No. 11, Aley 7, Project 6 Quezon City M a d a m : This refers to your letter dated July 13, 2007 stating that your father, Edilberto B. Tato, Sr., died on January 20, 2007; that the properties consisting the estate of your father are located in different localities, such as in Butuan, General Santos City and Baguio; that your mother is currently paralyzed and is continually under medications, hence, you are now in a financial difficulty; that due to limited funds you will not be able to pay immediately the estate tax due on your father's estate, hence, you are requesting an extension of two (2) years within which to pay the same; that since you are financially challenged, you are requesting that a waiver of the imposition of penalty and surcharge be granted in your favor; and that since the last day for filing the estate tax return for the estate of your late father was on July 20, 2007, you are likewise requesting for an extension of time within which to file the said return. In reply, 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 foregoing and the aforestated justifiable reason, your request for an extension of time within which to pay the estate tax is hereby granted pursuant to Section 91 (B) of the Tax Code of 1997, as amended, and as implemented by Section 9 (E) of RR No. 2-2003. Accordingly, the estate tax due on the estate of Edilberto B. Tato, Sr. may be paid up to two (2) years counted from July 20, 2007 or until July 20, 2009. In view of this extension of time to pay, you are hereby advised to file a tentative estate tax return for the estate of your late father within thirty (30) days counted from July 20, 2007, the last day prescribed by law to file the said return. Moreover, in view of the above favorable action on your request for an extension of two (2) years within which to pay the estate tax of your father, this Office has decided to forego the imposition of the surcharge and penalties on the estate tax due on the transmission of his estate. However, it shall be understood that his estate shall be liable for the corresponding interest that has accrued thereon up to the time of payment of the aforesaid estate tax pursuant to Section 249 of the Tax Code of 1997, as amended. CTEDSI Please be guided accordingly. Very truly yours, Commissioner of Internal Revenue By: (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service