BIR Ruling [DA-580-99]

October 6, 1999 BIR RULING [DA-580-99] Arcadio R. Garcia and Associates 3-1 Edificio Enriqueta corner D. Tuason and Amoranto Streets Sta. Mesa Heights, Quezon City Attention: Mr . Arcadio R . Garcia Gentlemen : This refers to your letter dated October 4, 1999 stating that in BIR Ruling No. DA-533-98 dated December 26, 1998, this Office granted your request for an extension of thirty (30) days from December 26, 1998 to January 28, 1999 within which to file the estate tax return of the late Antonio Tuason, Jr. and for an extension of five years within which to pay the estate tax or any part thereof due on the transmission of the estate of the late Antonio Tuason, Jr.; that the estate tax return was eventually filed on January 28, 1999 reflecting a basic estate tax liability of P141,450,195.00; that the executor, Mr. Gerardo D. Papa, deems it best to settle the estate tax liability as soon as possible to minimize payment of interests and to be able to distribute the shares of the heirs at the earliest possible time; that partial payment of the aforementioned estate tax liability has been made on September 29, 1999 in the amount of P25,000,000.00 as evidenced by Payment Form No. 0605 and DBP Official Receipt No. 2428079-99 both dated September 29, 1999; that on September 9, 1999, the Regional Trial Court, National Capital Judicial Region, Branch 96, Quezon City, "In the Matter of Probate of the Last Will and Testament of Antonio Tuason, Gerardo D. Papa, Petitioner" Sp. Proc. No. Q-98-35351, granted "The Motion for Leave to Sell" filed by the executor considering that the expected total tax liability of the estate would be around P155,000,000.00 as of July 1999 and an estimated accruing interest liability of P2,300,000.00 per month on the tax liability for as long as it is not paid; and that the shares of stocks which are being requested to be sold are the following: LibLex ISSUING COMPANY NO. OF SHARES Arabay, Incorporated 1,904 Atlas Consolidated Mining & Dev. Co. 17,822 Ayala Fund, Inc. 1,249 Ayala Corporation "A" 857,691 Ayala Land, Inc. 2,108 Ayala Life Assurance Co. 710,000 Bank of the Philippines Islands 4,460 Boie, Incorporated 1,637 Botica Boie, Inc. 6,815 Country Realty, Inc. 325 Domestic Insurance Co. of the Phil. 348 Dupro-Philippines, Inc. 274 Engineering Equipment, Inc. 77,341 FGU Insurance Corporation 16,192 Gaming Interest & Franchise Tech., Inc. 8,750 Globe Mackay Cable & Radio Corporation 25,876 Lepanto Consolidated Mining Co. "A" 3,707,789 Lepanto Consolidated Mining Co. "B" 428,215 Manila Jockey Club, Inc. 98,960 Paper Industries Co. of the Phil. 1,557 Philex Mining Corporation "A" 719,136 Philex Mining Corporation "B" 28,627 Philippine-American Drug Co. 607 Reinsurance Co. of the Orient, Inc. 1,500 San Miguel Corporation "A" 637,737 San Miguel Corporation "B" 13,535 Santa Rosa Mining Co. 33,333 Sime Darby Pilipinas, Inc. 241,785 SM Fund, Inc. (SM Development Corp.) 845 Synthetic Textiles Manufacturers Co., Inc. 15,603 Varsity Hills, Inc. 600,150 In connection therewith, you are requesting for and in behalf of the executor of the Estate of the late Antonio Tuason, Jr. for authority to sell the aforementioned shares of stock, the proceeds of which will be used for the payment of the balance of the estate tax liability as well the issuance of a partial tax clearance covering said shares of stock. LibLex In reply thereto, please be informed that your request for authority to sell the aforementioned shares of stock is hereby granted considering that on September 9, 1999 in Special Proceedings No. Q-98-35351 entitled "In the Matter of Probate of the Last Will and Testament of Antonio Tuason, Gerardo D. Papa, Petitioner", the Regional Trial Court, National Capital Judicial Region, Branch 96, Quezon City, granted "The Motion For Leave To Sell" filed by the executor. Moreover, the Revenue District Office concerned is likewise authorized to issue a partial tax clearance covering the aforementioned shares of stock so that the sale thereof can be effected and the proceeds thereof will be used for the payment of the balance of the estate tax liability of the Estate of the late Antonio Tuason, Jr. Very truly yours, (SGD.) BEETHOVEN L. RUALO Commissioner of Internal Revenue