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. 

TAX BILLS INTRODUCED JUNE 25TH:
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)

INTERNAL REVENUE SERVICE - CIRCULAR 230 DISCLOSURE:
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.

STEPTOE & JOHNSON LLP - TAX PRACTICE
Steptoe & Johnson LLP has one of the largest and most diverse law firm tax practices in the country. The practice covers the entire spectrum of federal taxation, including representation of businesses before the Congress, Treasury and the national office of the IRS; transactional planning for domestic and multinational corporations; complex audit and controversy work for corporations and other business interests contesting IRS adjustments; litigation before the Tax Court, Court of Federal Claims, district courts, courts of appeals and the Supreme Court. The firm's tax practice also encompasses all aspects of employee benefits (ERISA), executive compensation, tax-exempt organizations and charitable giving. Steptoe has an extensive state and local tax practice, representing an array of business clients on complex sales and use tax, corporate income tax and property tax matters, both advising those clients and handling audits, administrative appeals, and litigation for them. Read more information on Steptoe's tax practice.