Global companies and tax practitioners challenged proposed changes to current cross-border tax rules that aim to determine a country’s taxing rights, along with where a company would be taxed.

Tax practitioners from PwC as well as Volvo AB and AstraZeneca Plc said there are major pitfalls with the pending new models. They spoke March 13 about three possible profit allocation models for the digital economy at the first of a two-day public consultation. The consultation will discuss a global anti-base...