(Mrs.) Felisa S. Ocampo

September 5, 2008 BIR RULING [DA-(ET-008) 201-08] 90 (C) & 91 (B); DA-436-05 (Mrs.) Felisa S. Ocampo No. 3 Happy Glenloop Street Sun Valley Subdivision Paraaque City M a d a m : This refers to your letter dated August 29, 2008 requesting extension of thirty (30) days from September 12, 2008 or until October 12, 2008 to file the Estate Tax Return of the decedent and an extension of two (2) years from September 12, 2008 or until September 12, 2010 to pay the full amount of the tax due on the transmission of the estate of the decedent to the heirs. CHIScD It is represented that the decedent Leonardo R. Ocampo died intestate on March 12, 2008; that the heirs are still in the process of gathering the necessary papers and documents required in filing the Estate Tax Return as well as verifying the extent of the properties owned by the Decedent; that the six (6) months period provided by the Tax Code will expire on September 12, 2008; and that the heirs cannot file the Estate Tax Return within the prescribed period, hence, this request for an extension of thirty (30) days within which to file the Estate Tax Return and an extension of two (2) years to pay the estate tax due thereon. 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 Leonardo R. Ocampo may be paid up to two (2) years counted from September 12, 2008 or until September 12, 2010. On the other hand, under Section 90 (C) of the Tax Code, a thirty-day extension is granted as an extension of the period within which to file the estate tax return, thus, considering that the last day for filing the estate tax return of the estate of Leonardo R. Ocampo is on September 12, 2008, the period within which to file the same is hereby extended up to October 12, 2008. Moreover, in view of the above favorable action to your request 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 Leonardo R. Ocampo. 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. THIASE Very truly yours, Commissioner of Internal Revenue By: (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service