Request for Extension of Time to File Estate Tax Return

July 11, 1997 BIR RULING NO. 081-97 83 (b) (c) 84 (b) 025-97 081-97 Mr. Ramoncito Pancratius U. Yupangco 70-D Main Horseshoe Drive Quezon City S i r : This refers to your letter dated June 26, 1997 requesting for an extension to file the estate tax return of your deceased mother, MRS . JOSEFINA UY-YUPANGCO , who died on December 28, 1996, and at the same time, for waiver of the surcharges, penalties and the interest due thereon until all of the heirs come into an agreement to settle the said estate of your deceased mother. Documents presented revealed that your mother, the late JOSEFINA UY-YUPANGCO , died last December 28, 1996, while your father, the late RAMON T. YUPANGCO , died on June 30, 1990 leaving a will; that the aforesaid Spouses left ten (10) legitimate children; that the estates, however, of the Spouses have not been revealed to the rest of the family your eldest brother, Jose Mari Uy Yupangco, who is said to be in full control over the matters; that you are faced with the dilemma anent the value of your deceased mother's estate which you know has to be filed not later than June 28, 1997; that since your family is big, disputes arise over as to who shall act as the Administrator of the estate; that last July 1996, when your mother was still alive, one of your younger sisters, Ma. Ana Elizabeth Y. Limcaco, filed a Petition for the Issuance of Letters of Administration over the Estate of your late father RAMON T. YUPANGCO , on the ground of incompetence in the performance of the duties of a judicial administrator; that the said petition was opposed by your eldest brother, Jose Mari Uy Yupangco, who filed a Motion for Substitution of Party praying that he be appointed as Administrator of the estate of your late father in substitution of your mother who recently died; that at present, the said petition is still pending in the Regional Trial Court, National Capital Judicial Region, Branch 132 in Makati City leaving the estate without any Administrator. In reply thereto, please be informed that under Secs. 83(b) and (c) of the Tax Code, as amended, 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. The payment of the estate 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, but in no case to exceed five years in case the estate is settled through the courts, or two years in case the estate is settled extrajudicially pursuant to Sec. 84 of the same Code. In view thereof, and considering that the Petition for the Issuance of Letters of Administration over the Estate of your late father has not yet been decided by the Court; and very soon probably, a similar petition shall be filed for the Estate of your late mother; and considering further that the two subject estates will not be settled without the intervention of the Courts because of conflict of interests on the said estates; and all of the above being due to causes beyond your control, this Office hereby allows you to file the estate tax return of your late mother not later than July 28, 1997. The estate tax, however, may be paid on or before five (5) years from the date of death of your late mother, or as soon as the estate is settled through the courts, whichever comes first. Furthermore, your request for waiver of surcharge and penalties on the estate tax due on the transmission of your late mother is likewise granted, but the estate shall be liable for the interest accrued up to the time the estate tax is paid. (BIR Ruling No. 25-97 dated March 25, 1997) It is understood, however, that this grant of extension to file the estate tax return and the extension to pay the estate tax refer only to the estate of your late mother MRS . JOSEFINA UY-YUPANGCO , and does not include the estate of your late father, MR . RAMON T. YUPANGCO , who died seven (7) years ago. cdta Very truly yours, LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue