Aranas Consunji & Barleta Law Office

July 17, 2008 BIR RULING [DA-(ET-001) 052-08] 90; 91; DA-285-98 Aranas Consunji & Barleta Law Office Unit 106 G/F Le Metropole Condominium Tordesillas Corner Dela Costa Streets, Salcedo Village, Makati City Attention: Atty. Ma. Louella M. Aranas Gentlemen : This refers to your letter dated 15 June 2008, requesting one (1) month extension of time to file the estate tax return and pay the estate tax due thereon of the Estate of Jose Antonio Lozano. It is represented that Mr. Jose Antonio Lozano died on December 28, 2008; that considering that the death of Mr. Lozano was unexpected, it took awhile for all the legal heirs to meet since some of them are residing abroad; that the legal heirs are in the process of collating all the documents needed in the settlement of the estate; that Mr. Lozano left two (2) adjacent properties located at No. 6 Noel Street, United Hills Paraaque, upon which his family home sits; that since most of the family members reside abroad, the heirs are currently fixing all requirements to be able to pay the said estate tax due; that because of the foregoing factors, the Estate of Mr. Jose Antonio Lozano has yet to file its Estate Tax Return and pay the corresponding Estate Tax due thereon. In reply, please be informed that Sections 90 (C) and 91 (B) of the Tax Code of 1997, provide, viz.: "SEC. 90. Estate Tax Return. "(C) Extension of Time. The Commissioner shall have authority to grant, in meritorious cases, a reasonable extension not exceeding thirty (30) days for filing the return." TCHcAE "SEC. 91. Payment of Tax. "(B) Extension of Time When the Commissioner finds that the payment on the due date of the estate tax or of any part thereof would imposed undue hardship upon the estate or any of the heirs, he may extend the time for payment of such tax or any part thereof not 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. In such case, the amount in respect of which the extension is granted shall be paid on or before the date of the expiration of the period of the extension, and the running of the Statute of Limitations for assessment as provided in Section 203 of this Code shall be suspended for the period of any such extension." Accordingly, in view of the aforesaid justifiable reasons, your request for extension of time within which to file the estate tax return and pay the estate tax due thereon is hereby granted until July 28, 2008. It shall be understood, however, that the estate shall be liable for the corresponding interests that have accrued thereon from June 28, 2008 up to the time of payment of the estate tax due on the transmission by the said estate, of the properties in favor of the heirs pursuant to Section 249 of the Tax Code of 1997. (BIR Ruling No. DA-285-98 dated June 29, 1998) Very truly yours, (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service