Alternative Dispute Resolution (ADR)
Alternative Dispute Resolution (ADR) is a process of resolving disputes within shortest possible time beyond the regular course of business followed by Appeal/Tribunal/Court. This is a platform for a holistic and multilateral discussion with the third party in resolving disputes. This benefits both the taxpayers and the government. It reduces the cost of trial as well as facilitating the government in collecting revenue within shortest possible time. This is a speedy way of resolving disputes. Following a global trend of success of ADR in tax administration Bangladesh has introduced this method in 2011-2012 financial year.
Pending cases at Appeals, Tribunal or at Hon'ble High Court/Supreme Court can be resolved at ADR. An application at ADR can be resolved by a consensus reached between the taxpayer and the representative from the Income Tax department through a facilitation conducted by an impartial facilitator appointed by the NBR. After obtaining the consent of the concerned appellate authority, where the appeal is pending, an application with the respective appellate authority has to be submitted. Currently, there are 4 facilitators for conducting Income Tax cases at ADR. For each case the National Board of Revenue appoints one of the facilitators. The taxpayer has to pay 5% of the disputed tax (minimum 2,500 taka to maximum 25,000 taka) as fees for the ADR. The taxpayer may revert to the regular appeal forum if no consensus is reached at ADR.