Ms. Merle E. Villacorta

October 30, 2009 BIR RULING [DA-(ET-014) 635-09] Ms. Merle E. Villacorta Special Administratrix of the Estate of Gloria A. Esteban c/o Buag & Uy Law Offices Suites A & B, 10/F Strata 100 Building F. Ortigas, Jr. Road, Ortigas Center, Pasig City Madam : This refers to your letter dated August 6, 2009 requesting for an extension of time within which to pay the estate tax due on the estate of your late mother, Gloria A. Esteban, who passed away on January 30, 2009; that her estate has until July 30, 2009 to file the estate tax return and pay the corresponding tax due thereon; that an extension of thirty days was granted by this Office for the estate of herein decedent to file the estate tax return; that despite exerting your best effort in coming up with the inventory of the properties left by the decedent within the given extension, you discovered that many of the properties which could possibly be included in the decedent's estate are still disputed and are under litigation thereby coming up with a more or less definite inventory and value of the estate is still improbable; that the supposed settlement of the above estate is also subject of a case for the probate of the decedent's will, the same being actively opposed by some heirs; that the estate has no available funds to pay for the estate tax due; and that you are still raising the funds to pay for the same, hence, this request for an extension of five (5) years within which to pay the estate tax. HSEIAT In reply, 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 five (5) years within which to pay the estate tax due on the estate of your late mother, Gloria A. Esteban, is hereby granted pursuant to Section 91 (B) of the Tax Code of 1997, as amended. Accordingly, you are hereby given until July 30, 2014 within which to pay the estate tax due on the estate of the late Gloria A. Esteban. 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 Gloria A. Esteban. 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, as amended. Very truly yours, Commissioner of Internal Revenue By: (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service