BIR Ruling No. 304-14

July 24, 2014 BIR RULING NO. 304-14 Section 90 (C), of the Tax Code of 1997, as amended; Section 91 (B), of the Tax Code of 1997, as amended; BIR Ruling No. 037-2012; BIR Ruling No. 020-2011 Riego De Dios Law Offices 28th Floor, Tower 2, The Enterprise Center, 6766 Ayala Avenue corner Paseo de Roxas, 1226 Makati City Attention: Atty. Maria Rachel V. Riego de Dios Gentlemen : This refers to your letter dated 17 August, 2013, requesting on behalf of your client, the Estate of the late Mariano Galia Miranda , an extension of time within which to file the estate tax return and pay the estate tax due. It is represented that Mariano Galia Miranda died last February 22, 2013 and that your reason for an extension to file the estate tax is that his family is still in the process of sorting out and collating all the relevant documents pertaining to the properties left by the decedent and that they are still raising funds to pay for the estate tax due therein. In reply, please be informed that Sections 90 (C) and 91 (B) of the National Internal Revenue Code (NIRC) of 1997, as amended, in pertinent part provides, 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." EISCaD "SEC. 91. Payment of Tax. xxx xxx xxx (B) Extension of Time. When the Commissioner finds that the payment on the due 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 extra-judicially. 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 August 22, 2013, which is the last day for filing of the estate tax return of the late Mariano Galia Miranda. 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 September 22, 2013, whichever comes first, provided that the executor, or the 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. TIEHDC 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 estate of its properties in favor of the heirs pursuant to Section 249 of the Tax Code of 1997, as amended. Very truly yours, (SGD.) KIM S. JACINTO-HENARES Commissioner of Internal Revenue