Mr. Rogerio S. Lupera, Jr.

August 11, 2009 BIR RULING [DA-(ET-015) 456-09] Mr. Rogerio S. Lupera, Jr. No. 7312 J. Victor Street Barangay Peio del Pilar Makati City Sir : This refers to your letter dated April 13, 2009 requesting as an Administrator of the Estate of Remedios S. Lupera, for a ruling as to whether or not the said estate, which consists merely of a Joint Bank Account in Bank of the Philippine Islands (BPI) Legaspi-Amorsolo Branch together with her husband, in the gross amount of P596,575.31 bearing account number 000329-0048-99, is exempt from the payment of estate tax pursuant to Section 84 of the Tax Code of 1997, as implemented by Revenue Regulations No. 2-2003. DISHEA It appears that Remedios S. Lupera died intestate on October 26, 2008 in Makati City; that she was survived by her husband, Rogerio Lupera, Sr. and five legitimate children namely: Virgilio, Christopher, Sheryl Lynn, Michelle and Rogerio, Jr. all surnamed Lupera; that medical expenses for the deceased were incurred in the amount of P236,809.57 as evidenced by Official Receipts issued by Medical Center Manila while funeral expenses in the amount of P170,904.00 were incurred as evidenced by Official Receipts issued Funeraria Lorenzo, Inc.; that at the time of her death, she maintains together with her husband a bank account with the BPI in the gross amount of P596,575.31 as certified by its Service Officer AM. Leila T. Paraguya on March 16, 2009; and that on March 26, 2009, an Extra-Judicial Settlement of Estate with Waiver of Rights was executed by the above-mentioned heirs whereby Rogerio Sr., Virgilio, Christopher, Sheryl Lynn and Michelle waived their rights, interest and participation over the said account in your favor. In reply thereto, please be informed that Section 90 (A) in relation to Section 97 of the Tax Code of 1997 provide that "SEC. 90. Estate Tax Returns. (A) Requirements. In all cases of transfers subject to the tax imposed herein, or where, though exempt from tax, the gross value of the estate exceeds Two hundred thousand pesos (P200,000), or regardless of the gross value of the estate, where the said estate consists of registered or registrable property such as real property, motor vehicle, shares of stock or other similar property for which a clearance from the Bureau of Internal Revenue is required as a condition precedent for the transfer of ownership thereof in the name of the transferee, the executor, or the administrator, or any of the legal heirs, as the case may be, shall file a return under oath in duplicate, setting forth: (i) the value of the gross estate of the decedent at the time of his death, or in case of a non-resident, not a citizen of the Philippines, of that part of his gross estate situated in the Philippines; (ii) the deductions allowed from gross estate in determining the estate as defined in Section 86; and (iii) such part of such information as may at the time be ascertainable and such supplemental data as may be necessary to establish the correct taxes." Considering that the estate of the late Remedios S. Lupera consists merely of a bank account in the total amount of P596,575.31 which is less than the standard deduction of P1,000,000.00 as prescribed in Section 86 (A) (5) of the Tax Code of 1997, thus leaving the net estate to zero. This Office holds that the estate of the late Remedios S. Lupera is EXEMPT from estate tax. IDSaEA This ruling is being issued on the basis of the foregoing facts as represented. However, if upon investigation, it will be disclosed that the facts are different, then this ruling shall be considered null and void. Very truly yours, (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service