BIR Ruling [DA-572-98]

December 23, 1998 BIR RULING [DA-572-98] Mr. Mariano B. Aguilar Administrator 33 BMA Avenue Tatalon, Quezon City S i r : This refers to your letter dated October 26, 1998 requesting for an extension of time within which to file the estate tax return and to pay the estate tax due thereon pursuant to Sections 90(C) and 91(B) of the Tax Code of 1997. cd It is represented that the late Leona D. Aguilar died on April 27, 1998; and that you are constrained to make this request to give your accountant an ample time to prepare his report and for you to have more time to find ways and means for the payment of whatever tax may be due from the estate. In reply thereto, please be informed that under Sections 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 years in case the estate is settled through the courts, or two years in case the estate is settled extrajudicially pursuant to Section 91(B) of the same Code. The estate tax however, may be paid on or before two (2) years from the death of the late Leona D. Aguilar, or as soon as the estate is extrajudicially settled, whichever comes first. On the other hand, since the payment of the estate tax or any part thereof on the due date would impose undue hardship upon the estate or any of the heirs, your request for an extension of thirty (30) days within which to file the return and two years within which to pay the estate tax or any part thereof due on the transmission of the estate of the late Leona D. Aguilar, is hereby granted. It shall be understood, however, that the estate shall be liable to the corresponding interest that have accrued thereon up to the time of filing of the return and payment of the estate tax due on the transmission of the said estate to the heirs. (BIR Ruling No. 25-97 dated March 25, 1997) Very truly yours, (SGD.) BEETHOVEN L. RUALO Commissioner of Internal Revenue