BIR Ruling No. 423-12

June 25, 2012 BIR RULING NO. 423-12 Secs. 90 (C); 91 (B) & 249 NIRC; Revenue Regulations No. 02-2003; BIR Ruling No. 020-11 Maria Luisa D. Daya-Garcia 3571 Magistrado Arellano St. Bacood, Sta. Mesa, Manila Madam : This refers to your letter dated March 19, 2012 requesting on behalf of the heirs of Ildefonso J. Daya, an extension of time within which to file the estate tax return and to pay the estate tax due thereon within a period of two (2) years. It is represented that your father, Ildefonso J. Daya, died on October 8, 2011; that your reason for an extension to file the estate tax return is because you are still in the process of sorting out and collating all the relevant documents pertaining to the properties left by your father and that you are still raising the funds to pay for the estate tax due on the estate. 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." CaTSEA "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." 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 April 8, 2012, which is the last day for filing of the estate tax return of the late Ildefonso J. Daya. Thus, the filing of the said estate tax return of the decedent is hereby extended up to May 8, 2012. Further, since you are still sorting out and collating all important documents relative to the properties left by the decedent, your request for extension of two (2) years within which to pay the estate tax is hereby granted. Thus, the heirs shall pay the estate tax within two (2) years reckoned from May 8, 2012 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. cDCaTS It shall be understood, however, that the estate shall be liable for the corresponding interest that shall have accrued from May 8, 2012 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. 020-11 dated January 26, 2011) CIETDc 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.) KIM S. JACINTO-HENARES Commissioner of Internal Revenue