Section 95
SEC. 95. Payment of tax. (a) Time of payment. (1) General rule. — The estate and inheritance taxes imposed by sections 85 and 86 shall be due and payable within nine months and twelve months, respectively, after the decedent's death and shall be paid by the executor, administrator, or the heirs, as the case may be, to the Collector of Internal Revenue or to the treasurer of the province, city, or municipality in which the decedent was domiciled at the time of his death. (2) Exception. — In case judicial testamentary or intestate proceedings shall be instituted for the settlement of the decedent's estate prior to the expiration of six months after his death, the estate and inheritance taxes shall be due and payable within twenty-one months and twenty-four months, respectively, after the decedent's death. (b) Extension of time. — When the Collector of Internal Revenue finds that the payment on the due date of the estate or inheritance taxes or of any part of the said amounts would impose undue hardship upon the estate or any of the heirs, he may extend the time for payment of such taxes or any part thereof not to exceed five years in case the estate is settled through the court or two years in case the estate is settled extra-judicially. 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 or limitations for assessment as provided in section 331 of this Code shall be suspended for the period of any such extension. Where the taxes are assessed by reason of negligence, intentional disregard of rules and regulations, or fraud on the part of the taxpayer, no extension will be granted by the Collector. If an extension is granted, the Collector of Internal Revenue may require the executor, or administrator, or the beneficiary, as the case may be, to furnish a bond in such amount, not exceeding double the amount of the taxes and with such sureties as the Collector deems necessary, conditioned upon the payment of the said taxes in accordance with the terms of the extension. (c) Liability for payment. — The estate tax imposed by section 85 shall be paid by the executor or administrator before delivering to any beneficiary his distributive share of the estate. For the purpose of this Chapter, the term "executor" or "administrator" means the executor or administrator of the decedent, or, if there is no executor or administrator appointed, qualified, and acting within the Philippines, then any person in actual or constructive possession of any property of the decedent. The inheritance tax imposed by section 86 shall, in the absence of contrary disposition by the predecessor, be charged to the account of each beneficiary, in proportion to the value of the benefit received, and in accordance with the scale fixed for the class or group to which he pertains: Provided, That in cases where the heirs divide extra-judicially the property left to them by their predecessor or otherwise convey, sell, transfer, mortgage, or encumber the same without paying the estate or inheritance taxes within the period prescribed in the preceding subsections (a) and (b), they shall be solidarily liable for the payment of the said taxes to the extent of the estate they have received.