Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Alternative dispute resolution is a confidential process – is this about to change?

24 May 2022 / Keith M Gordon
Issue: 4841 / Categories: Comment & Analysis
82300
Spot the difference

Key points

  • HMRC’s alternative dispute resolution means mediation rather than arbitration.
  • The mediator will be an HMRC officer unless the taxpayer wishes to appoint a fully independent mediator but the taxpayer will be expected to pick up the tab.
  • HMRC caseworkers sometimes see ADR as a fact-gathering exercise and refuse to countenance any discussion towards a settlement.
  • HMRC now requires taxpayers to agree to it being permitted to use information that is material to a taxpayer’s tax or penalty position.
  • This lack of confidentiality contradicts the purpose of the ADR process.

In my article ‘Better than sliced bread?’ (Taxation 22 October 2015 page 10) I extolled the virtues of the alternative dispute resolution (ADR) process when trying to resolve a dispute between taxpayers and HMRC. Recent developments have somewhat reduced the attractiveness of the ADR process but I would not wish to discourage practitioners from considering it...

If you or your firm subscribes to Taxation.co.uk, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.

back to top icon