Quasha Ancheta Peña & Nolasco

October 9, 2009 BIR RULING [DA-(ET-012) 593-09] Section 90 (C), 91 (B); [DA-(ET-010) 360-08] September 18, 2009 Quasha Ancheta Pea & Nolasco Don Pablo Building, 114 Amorsolo Street, 1229 Makati City, Philippines Attention: Alfredo Z. Pio de Roda III Ma. Ruiza L. Regalado Gentlemen : This refers to your letter dated September 4, 2009 requesting on behalf of your clients, the heirs of Vicente L. Yupangco, Jr., an extension of thirty (30) days from 07 November 2009, or until 07 December 2009, within which to file the estate tax return, and an extension of two (2) years from 07 November 2009, or until 07 November 2011, within which to pay the estate tax due thereon. It is represented that the late Vicente L. Yupangco, Jr., a Filipino citizen, died intestate at San Francisco, California U.S.A. on 07 May 2009, leaving as sole heirs Martin K. Yupangco, Enrique K. Yupangco, and Jo Victoria Yupangco-Russell. The six (6) month period provided in the 1997 Tax Code will expire on 07 November 2009 and it is not possible for the heirs to file the estate tax return and pay the estate tax thereon within the prescribed period. The estate of the deceased consists of real and personal properties and at this point in time, the heirs are having difficulty collating the necessary papers, documents, and other requirements to file the estate tax return, as well as verifying the extent of the properties owned by the decedent. Furthermore, the estate has limited cash resources. The heirs still need to raise the funds to pay the estate tax. In reply thereto, pleased be informed that under Section 90 (B) and (C) of the 1997 Tax Code, the 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 though the courts or two (2) years in case the estate is settled extrajudicially pursuant to Section 91 (B) of the Tax Code of 1997. (BIR Ruling [DA-(ET-010) 360-08] dated October 27, 2008) . SaAcHE Based on the aforestated justifiable reason, your request for an extension of thirty (30) days within which to file the estate tax return for the estate of the late Vicente L. Yupangco, Jr. is hereby granted pursuant to Section 90 (C) of the Tax Code of 1997, as amended. Accordingly, you are hereby given until 07 December 2009 within which to file the required estate tax return. On the other hand, your request for an extension of two (2) years within which to pay the estate tax due on the above estate is hereby granted pursuant to Section 91 (B) of the Tax Code of 1997, as amended. Accordingly, you are hereby given until 07 November 2011 within which to pay the estate tax due on the estate of the late Vicente L. Yupangco, Jr. In view of the above favourable action to your request for an extension of two (2) years within which to pay the estate tax, it shall be understood that the running of the Statute of Limitations for assessment as provided in Section 203 of this Code shall be suspended for the period of any such extension pursuant to Section 91 (B). Moreover, this Office has decided to forego the imposition of surcharges and penalties as mentioned in Section 248 (A) relative to the non-payment of the estate tax due upon filing of the estate tax return. Furthermore, it shall also 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. Very truly yours, Commissioner of Internal Revenue By: (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service