New figures show that the number of personal and small business tax disputes accepted for alternative dispute resolution (ADR) has risen by over 70% in the last year.
New figures show that the number of personal and small business tax disputes accepted for alternative dispute resolution (ADR) has risen by over 70% in the last year. The figures, obtained by RSM under a freedom of information request, reveal that HMRC accepted 413 applications for ADR from SMEs and individuals in 2014/15, up from 240 in the previous year. The statistics also show that the taxman is increasingly likely to try and resolve tax disputes through ADR mechanisms rather than expensive civil litigation. In 2013/14, 66% of applications were accepted for ADR, but in 2014/15 this figure had risen to 82 per cent.
Mike Down, RSM’s head of tax investigations said: ‘Some disputes can result in a complete breakdown of trust between HMRC and taxpayers, so having the option of a neutral mediator getting involved can often break the deadlock. The facilitators will invariably be HMRC personnel, so while they cannot accurately be described as being truly independent, in our experience they have always been scrupulously fair to both parties. Clearly this is a cost effective way for HMRC to conclude tax disputes, but there are potentially significant benefits for taxpayers who may be able to settle their affairs more quickly and without being drawn into expensive and lengthy litigation.’
New figures show that the number of personal and small business tax disputes accepted for alternative dispute resolution (ADR) has risen by over 70% in the last year.
New figures show that the number of personal and small business tax disputes accepted for alternative dispute resolution (ADR) has risen by over 70% in the last year. The figures, obtained by RSM under a freedom of information request, reveal that HMRC accepted 413 applications for ADR from SMEs and individuals in 2014/15, up from 240 in the previous year. The statistics also show that the taxman is increasingly likely to try and resolve tax disputes through ADR mechanisms rather than expensive civil litigation. In 2013/14, 66% of applications were accepted for ADR, but in 2014/15 this figure had risen to 82 per cent.
Mike Down, RSM’s head of tax investigations said: ‘Some disputes can result in a complete breakdown of trust between HMRC and taxpayers, so having the option of a neutral mediator getting involved can often break the deadlock. The facilitators will invariably be HMRC personnel, so while they cannot accurately be described as being truly independent, in our experience they have always been scrupulously fair to both parties. Clearly this is a cost effective way for HMRC to conclude tax disputes, but there are potentially significant benefits for taxpayers who may be able to settle their affairs more quickly and without being drawn into expensive and lengthy litigation.’
