BIR Ruling No. 012-07

July 23, 2007 BIR RULING NO. 012-07 Sec. 4 & 97 000-00 Atty. Vicente R. Solis c/o Mr. Charlie Rieth Valderrosa St., Zamboanga City S i r : This refers to your letter dated March 26, 2007 requesting in behalf of your clients, the Heirs of Susie Irene Galle Rieth, for an authority to withdraw the decedent's deposits with Chinabank in order to pay the amount of P1,747,769.51 constituting the estate tax due on her estate. It is represented that the estate tax return for the estate of Susie Irene Galle Rieth has been finalized already but filing thereof was not made due to the inability of her heirs to raise the amount of P1,747,769.51 constituting the estate tax due. The four (4) heirs of the deceased, namely, Hans, Fritz, George and Charlie, are presently in no financial position to raise and pay the above amount. The heirs wish to settle the estate tax at the soonest possible time but they just do not have the means to pay the same. Part of the estate of the decedent consists of P6,163,386.50 in Philippine Currency, and $228.56 in United States Currency, deposited in various banks which can be used to pay for the estate tax. In view of the foregoing, you are requesting for the issuance of a temporary clearance to enable the heirs to withdraw the deposit in Chinabank with the condition that the amount of P1,747,769.51, constituting the estate tax due on the estate of Susie Irene Galle Rieth, shall immediately be paid to the BIR . In reply, please be informed that your above request is hereby partially 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 liability of herein decedent, this Office, in consonance with the power granted to the Commissioner under Section 4 of the Tax Code, as amended, allows the heirs of Susie Irene Galle Rieth to withdraw from her bank account the amount of P1,747,769.51 only, constituting the estate tax due, and not the entire amount deposited therein. In view thereof, Chinabank is hereby given the authority to debit from the decedent's account the amount of P1,747,769.51 and to immediately credit the same to the account of the BIR. IcDHaT Moreover, this ruling shall not preclude the BIR from conducting further investigation as to the appropriate estate tax liability of the estate concerned. Neither should this ruling be construed to recognize certain heirs or any person's capacity to draw or utilize any fund or property of the estate from the bank or other entities. 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.) LILIAN B. HEFTI OIC-Commissioner of Internal Revenue