Alternative Dispute Resolution for Resolving Tax Related Disputes

Abstract

ADR is essential for resolving issues like case backlogs and providing quick and easy dispute settlement. Numerous benefits, such as time savings, cost-effectiveness, and the disputants' shared relationship, support its preference over litigation. Despite the protagonists' apparent benefits, alternative dispute resolution (ADR) has not been thoroughly investigated in tax dispute resolution. Because tax disputes are a dynamic and public concern, the legal structure governing alternative dispute resolution is difficult. Tax disputes are not usually contentious affairs with numerous disputed facts. The tax authority knows its jurisdiction to collect taxes, and taxpayers know their duty to pay taxes. The flexibility of ADR encourages innovative solutions, especially in family and community conflicts, focusing on maintaining relationships. Despite obstacles, continuous efforts are made to raise awareness and break cultural boundaries. ADR has a bright future in Pakistan thanks to legislative changes and rising cultural acceptance, which signal a shift in a more cooperative and effective judicial system.