Abstract
A broad nondiscrimination provision appears in every income tax treaty that the United States has entered into in the last quarter century. The nondiscrimination article of these treaties purports to prohibit discriminatory taxes levied against foreign nationals or their businesses. However, some distinctions have always been permitted, based on the fact that domestic and foreign taxpayers are not similarly situated because different taxing jurisdictions are concerned. The problem is that it is difficult to articulate a consistent and rational standard to apply to determine when proscribed discrimination is present.
This article analyzes the nondiscrimination concept, evaluates its general acceptance worldwide, explores its rather inconsistent application in the United States, and considers whether it makes sense to continue including a nondiscrimination article in future U.S. income tax treaties.
Recommended Citation
Goldberg, Sanford H. and Glicklich, Peter A.
(1994)
"Treaty-Based Nondiscrimination: Now You See It Now You Don't,"
Florida Tax Review: Vol. 1:
No.
1, Article 2.
Available at:
https://scholarship.law.ufl.edu/ftr/vol1/iss1/2