BIR Ruling No. 090-13

March 5, 2013 BIR RULING NO. 090-13 Tax Code, Sec. 90 (C) of the NIRC, as amended; BIR Ruling No. 020-11 Felisa Aquino-Galsim & Zenaida Aquino-Flores 27 Balagtas Blvd.,San Pablo City, Laguna Madam : This refers to your undated letter requesting for an extension within which to file the estate tax return and pay the estate tax. cTECIA It is represented that Cristeta Artificio Aquino died on June 7, 2012 and that your reason for an extension to file the estate tax return is due to the difficulties in gathering and collating the necessary documents for the filing of the said return. In reply thereto, please be informed that Sections 90 (C) and 91 (B) of the Tax Code 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 reason, your request for an extension to file the estate tax return is hereby granted for a period of thirty (30) days counted from December 7, 2012, which is the last day for filing of the estate tax return of the late Cristeta Artificio Aquino. Moreover, your request for extension of the time within which to pay the estate tax is hereby granted up to the maximum period of five (5) years in case the estate is settled through the courts, or two (2) years in case the estate is settled extra-judicially, reckoned from actual filing of the return or on January 6, 2013 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. DSEaHT 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. Very truly yours, (SGD.) KIM S. JACINTO-HENARES Commissioner of Internal Revenue