Daily Tax Update - June 26, 2007

EC VAT AND THE ALLOCATION OF 3G MOBILE TELECOMMUNICATION LICENSES:  The European Court of Justice has today published decisions in value added tax two cases relating to 3G mobile telecommunication licenses.  In both cases the Court held that the allocation by the state of those licenses does not constitute an "economic activity" for VAT purposes.  As a consequence, the amounts paid by telecommunication operators for those licenses cannot be regarded as including VAT which could then be recovered from the relevant tax authority. 

H.R. 2851: To amend the Employee Retirement Income Security Act of 1974, the Public Health Service Act, and the Internal Revenue Code of 1986 to ensure that dependent students who take a medically necessary leave of absence do not lose health insurance coverage, and for other purposes.
Sponsor: Rep. Hodes, Paul W. [NH-2] (introduced 6/25/2007)      Cosponsors (43)

S. 1689: A bill to amend the Internal Revenue Code of 1986 to exclude from gross income amounts received on account of claims based on certain unlawful discrimination and to allow income averaging for backpay and frontpay awards received on account of such claims, and for other purposes.
Sponsor: Sen. Bingaman, Jeff [NM] (introduced 6/25/2007)      Cosponsors (1)

As provided for in Treasury regulations, advice (if any) relating to federal taxes that is contained in this communication (including attachments) is not intended or written to be used, and cannot be used, for the purpose of (1) avoiding penalties under the Internal Revenue Code or (2) promoting, marketing or recommending to another party any plan or arrangement addressed herein.

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