New UN Tax Treaty Dispute Provision Stirs Investment Concerns

A United Nations effort to help developing countries win more tax disputes is sparking worry that companies could lose access to what they see as fair hearings over abusive government powers.

The new UN guidance prioritizing a nation-centric dispute resolution process over one that gives companies more control might steer businesses away from some countries, raise the cost of investments, and weaken governments’ plans to lure capital, among other harms, critics say.

“Insofar as this potential reform might undercut what was before a predictable, possible mechanism for relief if things went sideways, then yes, it ...