Mr. Juan A.S. Valdes

May 7, 2009 BIR RULING [DA-(ET-005) 222-09] Sec. 91 (B); DA Nos. 436-05; 267-07; 383-03 Mr. Juan A.S. Valdes Unit 506 One Salcedo Place Jaime Velasquez St., Salcedo Village Makati City Sir : This refers to your letter dated May 4, 2009, requesting for an extension of time to file and pay the estate tax return on the estate of your father, CARLOS J. VALDES, who died on November 8, 2008, at Quezon City, since the estate of the deceased is under judicial proceedings in court, and due to the pendency of the case in court, you may not be able to file and pay the tax due within the six (6) months prescriptive period. 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 aforestated justifiable reason, your request for an extension of time within which to pay the estate tax is hereby granted pursuant to Section 91 (B) of the Tax Code of 1997. Accordingly, the estate tax due on the estate of Carlos J. Valdes may be paid up to five (5) years counted from May 8, 2008 or until May 8, 2013. On the other hand, under Section 90 (C) of the Tax Code, a thirty-day extension is granted within which to file the estate tax return. Thus, considering that the last day for filing the estate tax return on the estate of Carlos J. Valdes is on May 8, 2009, the period within which to file the same is hereby extended up to June 7, 2009. cAaETS Moreover, in view of the above favorable action on your request for an extension of five (5) 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 Carlos J. Valdes. However, it shall be understood that the estate shall be liable for the corresponding interest that has accrued thereon up to the time of payment of the aforesaid 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