BIR Ruling No. 533-12

August 29, 2012 BIR RULING NO. 533-12 Sections 90 (C) & 91 (B), NIRC of 1997; BIR Ruling No. 020-11; BIR Ruling No. 516-11 Ms. Melissa Pineda Apurillo Block 20 Lot 7 Imelda Village, Tacloban City 6500 Dear Ms. Apurillo, This refers to your letter dated July 2, 2012 requesting an extension period within which to file the Estate Tax Return of the decedent and to pay the full amount of the tax due on the transmission of the estate of your late father to you and your co-heirs. SIAEHC Documents submitted that the decedent, SALVADOR YU APURILLO, was a resident of Tacloban City and died intestate on January 4, 2012 in Quezon City; that the you are still in the process of gathering the necessary papers and documents and waiting for certifications from government agencies which are required in filing the Estate Tax Return; that the six (6) months period provided by the Tax Code will expire on July 4, 2012; and that the heirs anticipate that they will not be able to comply with the documentary requirement to file the estate tax return within the prescribed period, hence, this request for an extension period within which to file the estate tax return and to pay the full amount of the estate tax due thereon. 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." "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." 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." SEDICa Based on the foregoing justifiable reason, your request for an extension to file the estate tax return for the Estate of is hereby granted for a period of thirty (30) days counted from July 4, 2012 or until August 3, 2012, which is the last day for filing of the estate tax return of the late SALVADOR YU APURILLO. Further, since the heirs are having difficulty in collating all important documents required for the filing of the estate tax return, your request for extension GRANTED, such that the executor/administrator or heirs of SALVADOR YU APURILLO shall pay the estate tax within two (2) years from actual filing of the estate tax return on or before August 3, 2014, 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. 020-11 dated January 26, 2011) 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 said estate of its properties in favor of the heirs pursuant to Section 249 of the Tax Code of 1997. (BIR Ruling No. 516-11 dated December 22, 2011) 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