BIR Ruling [DA-551-06]

September 14, 2006 BIR RULING [DA-551-06] Atty. Antonio T. Fontanilla Century Park Hotel 599 Pablo Ocampo Sr., Malate Manila S i r : This refers to your letter dated August 23, 2006 stating that Hwang Yulo died on March 7, 2006; that the estate of the decedent has until September 7, 2006 to file the required estate tax return and pay the estate tax due thereon; that your clients, Lilian and Grace T. Hwang, the legal heirs of Hwang Yulo, are still in the process of ascertaining the properties left by the decedent; that in connection therewith, you are requesting for three (3) months within which to pay the estate tax reckoned from September 7, 2006. 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 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. Accordingly, the estate tax due on the estate of Hwang Yulo may be paid up to three months counted from September 7, 2006 or until December 6, 2006. On the other hand, under Section 90(C) of the Tax Code, only thirty (30) days is granted as an extension of the period within which to file the estate tax return reckoned from the lapse of the six-month period within which the said return is required to be filed. Thus, considering that Hwang Yulo died on March 7, 2006, said period would lapse on September 7, 2006. Such being the case, you are hereby directed to immediately file the estate tax return for the estate of Hwang Yulo in order to stop the running of the interest for late filing thereof. cETCID Very truly yours, (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service