Mr. Enrique C. Samonte

July 23, 2008 BIR RULING [DA-(ET-003) 071-08] 90 (C); DA-633-07 Dec. 12, 2007 Mr. Enrique C. Samonte 7962 Segundo Mendoza Villa Mendoza, Paraaque City S i r : This refers to your letter dated July 1, 2008, requesting for an extension of thirty (30) days within which to file the estate tax return of the late Remedios C. Samonte and pay the estate tax due thereon. aCSDIc It is represented that the late Remedios C. Samonte died on January 15, 2008; that the estimate tax due on the estate will be well over P1 million after deductions considering that it is composed of the following properties: 8/14 pro-indiviso share in a 650 sq.m. lot Located at M. Acosta Street, Pasay City with a value of (zonal) P3,714,285.71 8/14 pro-indiviso share on improvements On the above lot 411,211.43 12,761 sq.m. salt beds located in Habay, Bacoor, Cavite (zonal) 9,570,750.00 514 sq.m. agricultural lot located in Habay Bacoor, Cavite (zonal) 385,500.00 364 sq.m. residential lot located in Poblacion Bacoor, Cavite (zonal) 473,200.00 Total P14,554,947.14 ============ that the heirs have been trying to negotiate the sale of the salt beds for the last few months to be able to settle their obligations but have not been successful; that like all other salt beds in the vicinity, they are no longer suitable for salt making; that they have also been offered for purpose other than salt making, but the lack of right of way and the need for a huge amount of filling materials make the offer unattractive; that the two other properties in Bacoor are being squatted upon and the family home in Pasay City where the two youngest siblings have also been residing, both unemployed; that the heirs are over fifty (50) years of age and are either retired or semi-retired or unemployed; and that the heirs have no substantial savings, specially so because they had spent quite an amount for their mother, who had been sick for years. DTIaHE 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 extra judicially pursuant to Section 91 (B) of the Tax Code of 1997. Based on the aforestated justifiable reason, your request for an extension of thirty (30) days counted from July 15, 2008, which is the last day for filing of the estate tax return of the late Remedios C. Samonte, is hereby granted. Accordingly, the filing of the said estate tax return of the decedent is hereby extended up to August 15, 2008 pursuant to Section 90 (C) of the Tax Code of 1997. In view of the foregoing, this Office has decided to forego within the 30-day period the imposition of the surcharge and penalties on the estate tax due on the transmission of the estate of the late Remedios C. Samonte to her heirs. 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 estate tax pursuant to Section 249 of the Tax Code of 1997. Very truly yours, Commissioner of Internal Revenue By: (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service