Request to Pay Without Penalty the Estate Tax Due on Transmission of Estate of Decedent Within Ten (10) Days from the Date the Heirs are Allowed by the Court to Withdraw Necessary Funds from Decedent's Bank Deposits After Net Estate is Finally Determined

October 15, 1996 BIR RULING NO. 106-96 83 (b), (c), 84 000-000 106-96 Atty. Alberto G. De Joya 11th Floor, JMT Corporate Condominium ADB Avenue, Ortigas Center Pasig, Metro Manila S i r : This refers to your letter dated April 30, 1996 requesting that the heirs of the late Antonio R. de Joya be allowed to pay without penalty the estate tax due on the transmission of the estate of said decedent within ten (10) days from the date the said heirs are allowed by the Court to withdraw the necessary funds from the decedent's bank deposits, after his net estate is finally determined. LLpr It is represented that the late Antonio R. de Joya, who died on November 19, 1995, left a Last Will and Testament which is the subject of Probate Proceedings in the Regional Trial Court of Quezon City, docketed as Special Proceedings No. 096-27160. In reply, please be informed that under Sections 83 (b) and (c) of the Tax Code, as amended, estate tax return is required to be filed within six (6) months from the decedents 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 tax 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 Section 84 of the same Code. In view thereof, considering that the decedent's Last Will and Testament is under probate and therefore, any disbursement of funds from the estate can only be made upon order of the court, your request to pay the estate tax due within ten (10) days from the date the said heirs are allowed by the court to withdraw from decedent's bank deposits, after his estate is finally determined, is hereby granted. Furthermore, your request for a waiver of the surcharges on the estate tax due on the transmission of the late Antonio R. de Joya estate is, likewise, hereby granted. However, the estate shall be liable for the interest accrued up to the time the estate tax is paid. cdpr Very truly yours, LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue