BIR Ruling No. 344-2016

REPUBLICOFTHE PHILIPPINES

DEPAKTMENT OF FINANCE BUREAU OF INTERNAL REVENUE

Quezon City

Secs.90C91B&249NIRC

Revenuc Regulations No.02-2003

BIR Ruling No.059-2015 BIR Ruling No.374-2012

1344-2016

Atty.Gerardo A.Villaluz 6-29-2016

116J.P.Rizal St.Project4 Quezon City

Sir:

This refers to your letter dated December 2,2015 requesting on behalf of the Heirs of the Estate of Dominga A.Villaluz for an extension of time to file the latter's estate tax return

and to pay the estate tax due thereon.

Documents submitted show that Dominga A.Villaluz died on June 19,2015 after two 2 years of lingering illness.That you and your sister are the only heirs of your deceased

mother and you are taking responsibility of handling whatever estate your mother has left upon her demise.You are in the process of collating information to verify if she has any assets other than her share in the conjugal properties. During your mother's long term illness you incurred

substantial medical cxpenses which you financed through personal loans and which you are

still paying.You arc also in the need of raising funds to pay estate taxes. if any.

In reply thereto,please be informed that Sections 90(C and 91B of the Tax Code of 1997 provide, viz.:

"SEC. 90 Estate Tax Returns. XXX XXX XXX

meritorious cases a reasonable extension not exceeding thirty (30) days for filing the return C) Extension of Time.- The Commissioner shall have authority to grant. in

"SEC. 91 Pavment of tax.

X.XX XXX XXX

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 sentled through the courts. or bvo (2) years in case the estate is B Extension of Time.-When the Commissioner finds that the payment on the due

seuled extrajudicially.In such casethe 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 extensionand the running of the Statute of Limitations for assessment as provided in Section 203 of this Code shull be suspended for the period of amy such extension.

If an extension is granted.the Commissioner may require the executor,or administrator

amount of the tax and with such sureties as the Commissioner deems necessary,conditioned upon the panment of the said tax in accordance with the terms of the extension or beneficiary.as the case may be.to furnish a hond in such amount.not exceeding double the

request for an extension to file the estate tax return of thirty(30 days counted from December 192015.which is the last day for filing of the estate tax return of the late Dominga A.Villalu. Thus,the filing of the said estate tax return of the decedent is hercby extended up to January 18.2016. Based on the foregoing representations,this Office finds justifiable reason to grant the

042362

6-29-2016 344+-2016

Estate of Dominga A.Villalu Pasc 2 of2

judiciallv within which to pay the estate tax.Thus.the heirs shall pay the estate tax within 2 necessary.conditioned upon the payment of the said tax in accordance with the terms of the preparation of the said return,you have two (2 years (where the estate will be settled extra years reckoned from actual filing of the return or on January 18.2016,whichever comes first. provided that the cxecutor.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 Furthermore, since you are to collate all documents and information necessary for the

extension.

It shall be understood.however. that the estate shall be liable for the corresponding

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.506-14dated December 29,2014 interest that shall have accrued from January 18,2016 up to the time of payment of the estate

considered null and void. if upon investigation, it will be disclosed that the facts are different. then this ruling shall be This ruling is being issued on the basis of the foregoing facts as represented. However.

Very truly yours.

Commissioner of Internal Revenuc KIM S.JACINTO-HENARES 042362

K- Willaluz JUN 2 2016