Atty. Maricel L. Baltazar

March 17, 2009 BIR RULING [DA-(ET-002) 157-09] Section 90 (B); DA-166-2007 dtd. 04/26/07 Atty. Maricel L. Baltazar #25F, 88 Corporate Center Valero cor. Sedeno Streets Salcedo Village, Makati City Madam : This refers to your letter dated February 22, 2009, in behalf of your clients, the heirs of the late Atty. Eugenio V. Villanueva, Jr., requesting extension of time to file and pay the estate tax due without incurring the penalties for delinquency. It is represented that the late Atty. Eugenio V. Villanueva, Jr., died intestate on August 27, 2008; that the reason for request for the extension of time to file the estate tax return and pay the same is due to the difficulty on the part of the heirs to ascertain the details of and the gathering of the necessary documents in connection with the estate left by the decedent as some properties are located outside Metro Manila and likewise the supporting documents for the medical bills are still in the United States of America; that likewise, the estate does not have any cash or assets that are easily convertible to cash as it consists mainly of parcels of land which are still in the name of the decedent's father, which up to present had not been settled and remained undivided, not partitioned and not distributed among the heirs of the decedent's father including the decedent himself; Hence, your request. 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 extra-judicially pursuant to Section 91 (B) of the Tax Code of 1997. ETaHCD Based on the afore-stated justifiable reason, your request for an extension of two (2) years reckoned from February 27, 2009 within which to pay the estate tax is hereby granted 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, thus, considering that decedent died on August 27, 2008, said period is about to lapse. Such being the case, you are hereby directed to immediately file the estate tax return for the estate of Eugenio V. Villanueva, Jr. in order to stop the running of the interest for late filing thereof. Moreover, in view of the above favorable action for an extension of two (2) years 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 Eugenio V. Villanueva, Jr.. However, it shall be understood that the estate shall be liable for the corresponding interest that have accrued thereon up to the time of payment of the aforesaid estate tax pursuant to Section 249 of the Tax Code of 1997. (BIR Ruling No. DA-260-2000 dated June 9, 2000) This ruling is being issued on the basis of the foregoing facts as represented. However, if upon investigation, it will be disclosed that the facts are different, then this ruling shall be considered null and void. Very truly yours, Commissioner of Internal Revenue By: (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service