Alternative dispute resolution (ADR) in the form of mediation remains an important part of the tax dispute resolution process.
In light of the backlog of cases caused by Covid-19 and the practice statement issued by the First-tier Tribunal last year (tinyurl.com/zzbk7j2d) we expect that taxpayers and HMRC will begin to re-examine and embrace ADR as an effective method of resolving disputes with HMRC.
Recent downturn in the use of ADR
Until relatively recently HMRC imposed strict conditions on the timing of when an application for ADR could be made refusing to consider any application made after it had formally set out its position in its ‘statement of case’. This gave taxpayers a limited window in which to apply for ADR after HMRC’s enquiries had concluded. This unilaterally imposed restriction on the timing of ADR applications was disappointing...
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