We use cookies to give you the best online experience. By using our website you agree to our use of cookies in accordance with our cookie policy. Learn more here.Close Me
Alternative dispute resolution (ADR) allows tax disputes to be
revisited and resolved faster using an independent facilitator to
mediate discussions between the taxpayer and the HMRC caseworker.
Traditionally the vast majority of tax disputes are settled by
agreement and where agreement cannot be reached cases are brought
to conclusion through litigation.
ADR provides taxpayers with an alternative way of seeking to
resolve disputes in compliance checks, and covers both VAT and
direct tax disputes. For small and medium-sized enterprises, and
individuals, the facilitator will be a person from HMRC who has
been trained in ADR techniques and has not previously had any
involvement in the dispute. The facilitator works with both the
taxpayer and HMRC officer, in an open and flexible way, to broker
an agreement to settle the dispute.
ADR is currently being trialled, the trial being open to all
taxpayers, with applications for ADR continuing to be considered
until 30 November 2012. To date, nearly 70% of all applications for
ADR have been accepted.
What are the benefits?
The clear benefit of ADR is that it may shorten the time to
conclude a dispute without having to take an appeal to the
Tribunal, potentially saving both time and costs.
The process provides an opportunity for any area of the dispute
to be revisited and for all arguments and evidence to be reviewed,
including any new evidence or arguments either party wishes to put
forward. The taxpayer's representatives can act in the ADR, and
experience to date has shown that the dispute usually takes two
months or less to either resolve, or reach the stage where both
parties agree to differ.
Taking part in ADR provides a real opportunity to settle
difficult and long-standing disputes, where negotiations have
stalled or reached an impasse. If not successful in bringing
matters to a conclusion, participation will not prejudice the
taxpayer's statutory rights of review or appeal, and there is,
therefore, little downside to engaging in the process.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
If you are an individual moving to the UK your UK tax treatment will depend on whether you are "resident", "ordinarily resident" or "domiciled" in the UK.
The Government is consulting on how to change two aspects of the partnership tax rules in order to prevent tax loss arising from disguised employment relationships through limited liability partnerships and from certain arrangements involving the allocation of profits and losses among partnership members.
George Osborne has written to the Irish Minister of Finance in preparation for the G7 Meeting on 14 May in Dublin, concerning the shared agenda on tackling global tax evasion and avoidance.
Some comments from our readers… “The articles are extremely timely and highly applicable” “I often find critical information not available elsewhere” “As in-house counsel, Mondaq’s service is of great value”
Ian Stewart, Chief Economist At Deloitte, On Budget 2013
