BIR Ruling No. 312-14

August 4, 2014 BIR RULING NO. 312-14 Sec. 91 (B) of the NIRC, as amended; BIR Ruling No. 090-13 The Law Firm of Garcia Dauz & Fetizanan Unit 2306 Atlanta Centre 31 Annapolis St. Greenhills, San Juan City Attention: Atty. Michael P. Dauz Gentlemen : This refers to your letter dated October 5, 2010 requesting on behalf of your clients, the heirs of Leonor Borbon Macalalad, an extension of not less than 30 days within which to pay the estate tax. It is represented that Leonor Borbon Macalalad died intestate on April 5, 2010 and that your reason for an extension to pay estate tax is due to the difficulty in securing signatures of all the heirs, as some of them are already living outside the country. Hence, they are constrained to seek for an extension within which to pay the estate tax due thereon for a period of not less than 30 days. In reply thereto, please be informed that Section 91 (B) of the Tax Code of 1997 provide, viz. : "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." AcTDaH "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 extension of 30 days to pay the estate tax is hereby granted, reckoned from actual filing of the return or on October 5, 2010 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. (BIR Ruling No. 090-13 dated March 5, 2013) It shall be understood, however, that the estate shall be liable for the corresponding interest that have accrued thereon up to the time of payment of the estate tax pursuant to Section 249 of the Tax Code of 1997. Very truly yours, (SGD.) KIM S. JACINTO-HENARES Commissioner of Internal Revenue