Availment of Amnesty Tax

August 23, 1988 BIR RULING NO. 406-88 19 000-00 406-88 S i r : This refers to your radiogram stating that "x" died in 1982 leaving an estate with a fair market value of P227,087.00; that in 1986, the administrator for the estate availed of the tax amnesty under Executive Order No. 41, as amended by Executive Order No. 64 by paying an amnesty tax in the amount of P9,000.00; that for purposes of the amnesty tax availment, the administrator of "x's" estate placed the beginning networth at the time of death in 1982 at P227,087.00 and indicated the same amount as the ending networth for December 31, 1985 because there was actually no increase in networth. cdti Based on the foregoing facts, you posed the following questions: "1. Was the amnesty tax paid correct? "2. If in the negative, will the availment be considered invalid? "3. If the taxpayer is convinced of the correct payment, may he be allowed to amend his return by paying the difference between the correct amount due and the P9,000.00 paid?" In reply, please be informed that the administrator of the estate correctly paid the amount of P9,000.00 as amnesty tax based on a zero increase of networth between the death of the decedent in 1982 and December 31, 1985. Accordingly, his availment of the tax amnesty under Executive Order Nos. 41 and 64 pursuant to Section 5, Executive Order No. 64 is legal and proper and settles the estate tax liability of the estate. Reckoning the beginning networth at the time of death in 1982, instead of December 31, 1980 as provided in Section 2(c) of Executive Order No. 41, is correct because there was no way the administrator of the estate could have determined with certainty the correct value of the estate before that event. In view of our affirmative reply to question No. 1, questions 2 and 3 have become moot and academic. cdta Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner