Business Group Warns of Net Tax Loss Under UN Approach

A global business group said Tuesday that developing countries would lose hundreds of millions of dollars a year if they adopt a new method of taxing cross-border services endorsed by the United Nations.

The International Chamber of Commerce said a report it commissioned found the UN Model Tax Convention’s Article 12AA would lower annual revenue in developing countries by $241 million.

The entirety of the $7 billion in annual revenue that developing countries would collect under Article 12AA would be offset by lower investment and weaker economic growth, the Oxford Economics report said.

• “Our analysis suggests that for ...