Ms. Azucena V. Luis

November 24, 2009 BIR RULING [DA-(ET-022) 697-09] Sec. 90 (C); BIR Ruling No. DA-(ET-001) 052-08, DA-(ET-002) 066-08, DA-(ET-003) 071-08, DA-(ET-007) 183-08 & DA-(ET-008) 201-08 Ms. Azucena V. Luis No. 23 Falcon Street West Fairview Park Quezon City Madam : This refers to your letter dated October 7, 2009 requesting for an extension of time within which to file the estate tax return and pay the estate tax due on the estate of the late Ernesto H. Luis. It is represented that Ernesto H. Luis died intestate on May 30, 2009; that as of date, there has been no settlement yet of the decedent's estate, whether judicial or extrajudicial; and that the heirs of the decedent are still in the process of collating all the assets of the estate and raising funds for the payment of the estate tax which is due on November 30, 2009. Hence, you are constrained to seek for an extension within which to file the required estate tax return and 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, an 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. On the other hand, 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. The extension of time to pay the estate tax provided under Section 91 (B) of the Tax Code is reckoned from the last day the estate tax return is required to be filed or on the last day of the 30-day extension, if an extension to file the estate tax return is granted by the Commissioner. The duration of the said extension depends on the manner the estate of the decedent is settled, which is either through judicial or extra judicial proceeding, and in no case to exceed five (5) years if the estate is settled through the courts, or two (2) years if the estate is settled extra-judicially. HCITAS Based on the foregoing justifiable reason, your request for an extension to file the estate tax return is hereby granted for a period of thirty (30) days counted from November 30, 2009, which is the last day for filing of the estate tax return of the late extension within which to pay the estate tax is hereby granted up to the maximum period of five (5) years in case the estate is settled through the courts, or two (2) years in case the estate is settled extra-judicially, reckoned from December 30, 2009 pursuant to Section 91 (B) of the Tax Code of 1997. In view of the favorable action on your request for extension of time, this Office has decided to forego within the 30-day period for filing the estate tax return and within the 5-year or 2-year period, as the case may be, for paying the estate tax due thereon, the imposition of the surcharge and penalties on the estate tax due on the transmission of the estate of the late Ernesto H. Luis to his heirs. 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 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