BIR Ruling No. 059-15

February 27, 2015 BIR RULING NO. 059-15 Secs. 90 (C); 91 (B) and 249 NIRC; Revenue Regulations No. 02-2003; BIR Ruling No. 020-11; BIR Ruling No. 516-11 Richard S.J.B. Ortiz Richbelt Tower Condominium Unit 804 17 Annapolis St., Greenhills, San Juan City Gentlemen : This refers to your letter dated February 2, 2015 requesting on behalf of the heirs of JUSTO MAUN ORTIZ, an extension of ninety (90) days from February 5, 2015, within which to file the estate tax return and pay the estate tax thereon based on Section 90 (C) of the National Internal Revenue Code (NIRC) of 1997, as amended. Documents submitted disclose that the decedent JUSTO MAUN ORTIZ died on August 5, 2014; that the heirs of the deceased are still in the process of collating for all the proper documentation for all the assets covered by the estate; that the six (6) month period provided by the NIRC of 1997 will expire on February 5, 2015; and that due to the foregoing, you are requesting for an extension of thirty (30) days to complete said documentation and file the estate tax return, and two (2) years to fully pay 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." SACEca "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 reason, your request for an extension to file the estate tax return is hereby granted for a period of thirty (30) days counted from February 5, 2015 or until March 7, 2015 , which is the last day for filing of the estate tax return of the Estate of the late JUSTO MAUN ORTIZ. Moreover, your request for extension of the time within which to pay the estate tax is hereby granted for a period of two (2) years reckoned from actual filing of the return or on March 7, 2015 , 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 NIRC of 1997. 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 Bureau of Internal Revenue