BIR Ruling [DA-602-04]

November 25, 2004 BIR RULING [DA-602-04] Ms. Erlinda J. Guinto No. 30 Scout Tuazon Street Laging Handa, Quezon City M a d a m : This refers to your letter dated August 18, 2004 requesting for an extension of time within which to file the estate tax return and pay for the estate tax due on the estate of the late Socorro S. Ventenilla, who died on February 24, 2004. The estate has limited cash, thus, the heirs need more time to raise the same. In reply thereto, 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 above justifiable ground, your request for an extension of time within which to pay the estate tax is hereby granted up to two (2) years reckoned from February 24, 2004 pursuant to Section 91(B) of the Tax Code of 1997. 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 Socorro S. Ventenilla died on February 24, 2004, said period had already lapsed. Such being the case, you are hereby directed to immediately file the estate tax return for the estate of Socorro S. Ventenilla in order to stop the running of the interest for late filing thereof. HITAEC Moreover, in view of the above favorable action to your request for an extension of time within which to pay the estate tax, this Office has decided to forego the imposition of the surcharge and penalties on the estate tax due on the transmission of the estate of Socorro S. Ventenilla. However, it shall be understood that the estate shall be liable for the corresponding interest that have accrued thereon up to the time payment of the aforesaid estate tax pursuant to Section 249 of the Tax Code of 1997. Very truly yours, (SGD.) MILAGROS V. REGALADO Assistant Commissioner Legal Service