BIR Ruling No. 1010-18

June 13, 2018 BIR RULING NO. 1010-18 Secs. 90 (C); 91 (B) & 249 NIRC; Revenue Regulations No. 02-2003; BIR Ruling No. 506-14 AAA ____________________ ____________________ ____________________ Sir : This refers to your letter dated April 22, 2015 requesting on behalf of the heirs of BBB for an extension of time within which to file the estate tax return and to pay the estate tax due thereon. It is represented that BBB died on September 27, 2014 due to cardiac arrest leaving several properties located within and outside the Philippines. At the time of his death, he was a resident of Bonifacio Global City, Taguig City. He was survived by his wife, CCC and his children. The aforesaid wife and the children are now all residing outside the Philippines and is expected to be back in the country on June 2015. The heirs are still collating all the documents and information necessary for the preparation of the needed return. Furthermore, the task of preparing and gathering all of the documents are made more difficult by the number of properties involved and the fact that the properties are located in different cities and provinces of the Philippines and also in the Republic of Guam. 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." cHDAIS 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 March 26, 2015, which is the last day for filing of the estate tax return of the late BBB. Thus, the filing of the said estate tax return of the decedent is hereby extended up to April 26, 2015. Furthermore, since you are to collate documents and information necessary for the preparation of the said return, you have two (2) years (where the estate will be settled extra-judicially) within which to pay the estate tax. Thus, the heirs shall pay the estate tax within 2 years reckoned from actual filing of the return or on April 26, 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. It shall be understood, however, that the estate shall be liable for the corresponding interest that shall have accrued from April 26, 2015 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. 506-14 dated December 29, 2014) 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.) CAESAR R. DULAY Commissioner of Internal Revenue