H. David Rosenbloom Comments on Questions Remaining on BEPS, U.S. Model Treaty Changes
Excerpt taken from the article.
Several practitioners said the U.S. model changes leave open the question of whether other countries will be willing to accept them in future treaty negotiations.
H. David Rosenbloom, a member of Caplin & Drysdale in Washington, said the U.S. should try to bridge what he sees as the gap between the statutory rules and the treaty rules as the process moves forward. "We now have two sets of rules," he said.
Rosenbloom said he thinks the U.S. should join the growing movement toward source-based taxation, where income from cross-border transactions is taxed where it is earned, rather than where the taxpayer who receives the income resides.
"If we don't, we're going to be in the position of not being able to tax much," he said. "My view would be to take a hard look at our policies."