A change in approach by HMRC to Alternative Dispute Resolution?
12 January 2017
We are seeing an increase in examples where HMRC are taking a proactive approach to using Alternative Dispute Resolution ("ADR") as a further tool in resolving tax disputes. This has included instances where HMRC's decision letter specifically mentions the taxpayer's ability to pursue ADR as a method of resolving the dispute.
This positive change is likely due, in part, to an increased interest by the Courts and Tribunal in the attempts that were taken by the parties to pursue ADR during the litigation process.
A more collaborative approach by HMRC to resolving tax disputes would be good news as we have had positive experiences when using ADR to settle disputes. We have also found that exploring facilitation (a less formal form of ADR) can be equally fruitful in the resolution of disputes.
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