Pre-Conference Tutorial -- Understanding Communications Taxation.
Previously held May 17, 2010
Led by Jim Nason, Tax Managing Partner, Telecommunications, Deloitte Tax LLP
With Deloitte Tax members: Joe Carr, Kent Mathis and Kathy Saxton
This intense introductory seminar continues to be refreshed and updated to cover not only the basics of our current tax system for communications service providers, but a deeper dive into key tax considerations associated with “cutting edge” services and applications. This is a must for people new to the communications space or those that want a refresher of Communications Tax 101+. The first part of the program will continue to be focused on the core aspects of telecom taxation with the afternoon taking on the more challenging issues facing today’s telecom tax professional.
I. Overview of Communications Taxation
* Taxation of basic local, long distance, wireless, and cable services
* General taxes including gross receipts, sales, and telecommunications-specific taxes
II. Sourcing and Apportioning Transaction Taxes
* Understanding the Goldberg rule
* State's position and formulas on interstate services
III. Wireless Taxation Including Prepaid
* Sourcing of wireless services and the challenges
* Tax issues specific to wireless service providers as well as the applicability of various taxes and surcharges
IV. Exempt Customers, Sales for Resale and Taxation
* Understanding gross receipt taxes and telecommunications sale for resale exclusions and exempt customers
* Key differences among the states regarding resale taxation
V. Internet and Emerging Services Taxation
* Federal Internet Tax Freedom Amendments Act of 2007 – what’s new and what’s the same?
* Taxation of Internet access and new/emerging services
* Differences in taxation of telephone, data, TV and other related services
* Taxation of transport vs. content services vs. digital media
VI. Bundled Services Taxation
* What services are being bundled, how are they taxed and what are the challenges to existing tax models?
* What approaches are the states using to tax these bundles? Is there an answer to: what constitutes “books and records”?
VII. Recurring Audit Issues
*What are the big issues on the radar of state and local tax examiners?
*Current trends in state and local tax audits of “telecommunications” providers
VIII. Alphabet Soup – ABCs of Telecommunications and Related Services
*Become more conversant with acronyms and terminology increasingly used within the telecommunications industry
*What a telecommunications professional needs to know to “talk the talk”!
IX. Regulation, Fees, Surcharges and Other Charges (When is a Tax not a Tax?)
*Basic understanding of regulatory issues, concerns and changes facing the communications company
*Overview of regulatory mandates and related fees (911, USF, and more)