Martinez Vergara Gonzales & Serrano

November 3, 2008 BIR RULING [DA-(ET-011) 384-08] Sec. 97 012-2007 Martinez Vergara Gonzales & Serrano Suite 2401, The Orient Square F. Ortigas Jr. Road, Ortigas Center Pasig City Attention: Attys. Eduardo Martinez, Jose Miguel Fernandez & Michael Thor Singson Sir : This refers to your letter dated June 18, 2008 requesting in behalf of your clients, the Heirs of Consolacion Palacio-Gonzales and Aquiles Doroteo Gonzales, Jr., for an authority to withdraw from the decedents' deposits with Citibank to pay the respective amounts of P244,942.58 and P450,729.76 constituting the estate taxes due on their estates. The heirs of both decedents are short of cash to settle the liabilities of the decedents' estates. cTDECH In reply, please be informed that your above request is hereby granted. Section 97 of the Tax Code, as amended, allows only the withdrawal in the maximum amount of P20,000.00 upon authorization of the Commissioner. However, in recognition of your predicament and with the end of settling the estate tax liabilities of herein decedents, this Office, allows the heirs of Consolacion Palacio-Gonzales and Aquiles Doroteo Gonzales, Jr. to withdraw from their respective bank accounts the amounts of P244,942.58 and P450,729.76 only, constituting the estate taxes due, and not the entire amount deposited therein. In view thereof, Citibank is hereby given the authority to issue manager's checks in the amounts of P244,942.58 and P450,729.76 only, both payable to the Bureau of Internal Revenue, as payment for the respective estate taxes due on the estates of Consolacion Palacio-Gonzales and Aquiles Doroteo Gonzales, Jr. (BIR Ruling No. 012-2007 dated July 23, 2007). This authority to withdraw shall not be interpreted to preclude the BIR from conducting further investigation as to the appropriate estate tax liabilities of the concerned estates. Neither should this authorization be construed to recognize certain heirs or any person's capacity to draw or utilize any fund or property of the estate from bank or other entities. Please be guided accordingly. Very truly yours, Commissioner of Internal Revenue By: (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service