BIR Ruling No. 033-15

February 5, 2015 BIR RULING NO. 033-15 Section 90 (C) & 91 (B), NIRC of 1997; BIR Ruling No. 020-11; BIR Ruling No. 516-11 Rosalino P. Acance 19 Palm St., Saint Joseph Village, Tandang Sora, Quezon City Dear Mr. Acance, This refers to your letter dated October 8, 2014 requesting an extension period within which to file the Estate Tax Return of your deceased wife, Constancia Zamora Acance and to pay the full amount of the tax due based on Section 90 (C) of the National Internal Revenue Code (NIRC) of 1997, as amended. Documents submitted disclose that the decedent, CONSTANCIA ZAMORA ACANCE, was a resident of 19 Palm St., Saint Joseph Village, Tandang Sora, Quezon City and died on April 29, 2014 in Quezon City; that you are still in the process of gathering the necessary papers and waiting for documents from government agencies which are required in filing the Estate Tax Return; that the six (6) months period provided by the NIRC of 1997 will expire on October 29, 2014; and that due to the foregoing and your personal circumstances, you may not be able to comply with the documentary requirement to file the estate tax return within the prescribed period, hence, this request for an extension period within which to file the estate tax return and to pay the full amount of the estate tax due thereon. In reply thereto, please be informed that Sections 90 (C) and 91 (B) of the NIRC of 1997 provide, viz. : "SEC. 90. Estate Tax Returns . xxx xxx xxx (C) Extension of Time . The Commissioner shall have authority to grant, in meritorious cases, a reasonable extension not exceeding thirty (30) days for filing the return." "SEC. 91. Payment of tax . xxx xxx xxx (B) Extension of Time . When the Commissioner finds that the payment on the due date of the estate tax or of any part thereof would impose undue hardship upon the estate or any of the heirs, he may extend the time for payment of such tax or any part thereof not 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. In such case, the amount in respect of which the extension is granted shall be paid on or before the date of the expiration of the period of the extension, and 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." xxx xxx xxx If an extension is granted, the Commissioner may require the executor, or administrator, or beneficiary, as the case may be, to furnish a bond in such amount, not exceeding double the amount of the tax and with such sureties as the Commissioner deems necessary, conditioned upon the payment of the said tax in accordance with the terms of the extension." Based on the foregoing justifiable reasons, your request for an extension to file the estate tax return for the Estate of n is hereby granted for a period of thirty (30) days counted from October 29, 2014 or until November 28, 2014 which is the last day for filing of the estate tax return of the late CONSTANCIA ZAMORA ACANCE. Further, since the heirs are having difficulty in collating all important documents required for the filing of the estate tax return, your request for extension to pay the estate tax is hereby granted, such that the executor/administrator or heirs of CONSTANCIA ZAMORA ACANCE shall pay the estate tax within two (2) years from actual filing of the estate tax return on or before November 28, 2016 , whichever comes first, provided that the executor, or administrator, or beneficiary, shall furnish a bond in such amount, not exceeding double the amount of the tax and with such sureties as the Commissioner deems necessary, conditioned upon the payment of the said tax in accordance with the terms of the extension. (BIR Ruling No. 020-11 dated January 26, 2011) It shall be understood, however, that the estate shall be liable for the corresponding interest that shall have accrued thereon up to the time of payment of the estate tax due on the transmission by the said estate of its properties in favor of the heirs pursuant to Section 249 of the Tax Code of 1997. (BIR Ruling No. 516-11 dated December 22, 2011) 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.) KIM S. JACINTO-HENARES Commissioner of Internal Revenue n Note from the Publisher: Copied verbatim from the official copy.