Group Says UN Model Tax Treaty Change Would Spur Double Taxation

A proposed change to a United Nations model tax treaty would lead to double taxation and increase companies’ compliance burdens, a business group said Thursday.

The UN committee that is considering the change, which concerns the taxation of cross-border business activities, should reconsider and retain the treaty’s current provisions, which help create tax certainty, the National Foreign Trade Council said in a comment letter.

The provision that the NFTC opposes, known as Article xx, would be added to the UN Model Double Taxation Convention Between Developed and Developing Countries. It’s aimed at simplifying the treaty’s application—expanding the use ...