Grant of Request for Extension of Payment of Estate Tax

December 18, 2000 BIR RULING NO. 072-00 91 (B) DA-285-98 Mrs. Madonna O. Rivera #80 Villareal Street Gulod, Novaliches, Quezon City M a d a m : This refers to your letter dated April 23, 1999 requesting on behalf of the heirs of the late Olivia Chiong Olaivar and Pedrito Timbal Olaivar for an extension of two (2) years within which to pay the corresponding estate tax due on the transmission by the said properties in favor of the heirs pursuant to Section 91(B) of the Tax Code of 1997. It is represented that the late Olivia Chiong Olaivar and Pedrito Timbal Olaivar died on October 30, 1998 due to car accident; that you have difficulty in getting all important documents under their safekeeping; and that you are constrained to make this request to give you an ample time to prepare all the necessary documents. In reply, please be informed that pursuant to Section 91(B) of the Tax Code of 1997 which provides, viz: "(B) Extension of Time . When the Commissioner finds that the payment on the due date of the estate tax or 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." Accordingly, since you have difficulty in getting all important documents under your deceased parents safekeeping, your request for extension of two (2) years from April 29, 1999 to April 29, 2001 within which to pay the estate tax due thereon, is hereby granted, 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. SEDaAH 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. DA-285-98 dated June 29, 1998). Very truly yours, (SGD.) DAKILA B. FONACIER Commissioner of Internal Revenue