Tax disputes are expensive and distracting so alternative dispute resolution (ADR) can be a cost effective method of solving long running tax problems. There is a large backlog of cases waiting for a tax tribunal hearing and HMRC is keen to resolve tax disputes before they reach tribunal. The collaborative approach that ADR promotes can help to make a breakthrough where communication has stopped and attitudes on both sides are entrenched. Addressing the issues with the help of a mediator cuts to the heart of the dispute and can improve the chances of reaching a settlement that suits both parties.
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