Chambers prefer ADR for settling revenue cases

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FE Report
Leading chambers have proposed the revenue board to prefer mediation process instead of traditional tribunal-like appeal mechanism while settling revenue related cases.
The chambers have also urged the board not to consider the ADR (Alternative Dispute Resolution) process an additional court, warning that wrong steps could consign it into renewed controversy.
"The process should be structured and defined which should apply to all tax disputes. ADR will not be a separate tribunal or court. It will be resolved on consensus of both parties," the apex chamber said in a report.
The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) and Metropolitan Chamber of Commerce and Industry (MCCI) recently placed their comments on draft ADR.
The National Board of Revenue (NBR) has prepared a draft ADR and sought opinions of the stakeholders before finalising it.
In two proposals, the two leading chambers have made their comments after reviewing the draft ADR.
MCCI has proposed to form a panel of mediators, appropriately trained in revenue mediation, comprising persons with integrity and chamber representatives.
The draft law has termed the ADR as court, which both the chambers opposed in their report.
They have also criticised the draft ADR law, saying it will not be "suitable for speedy settlement of disputes."
FBCCI said the draft law on ADR, prepared by NBR, doesn't properly match with the basic principles of alternative trial process.
"ADR is neither a court nor a tribunal. It is a process of settlement of disputes through negotiations and mediation including arbitration. It must be an independent body," it said in its report.
Both the chambers have proposed to keep a provision on incentives and safeguard for the speedy settlement of disputes.
The chamber leaders have also criticised the selection criteria of the potential members of ADR.
Both the FBCCI and MCCI have proposed not to introduce the ADR as "binding" and "stringent" regulations.
"There must be scope for a negotiated outcome, rather than a binding decision made by a third party," MCCI said.
They have also opposed some of the provisions of draft ADR, saying that those "might make the ADR infamous like Truth Commission."
The provisions include---accepting an additional amount of tax, less than Tk 0.2 million, by the taxpayers, decisions of ADR as final, no provisions for appeal etc.
"Structure, selection and the format of proposed ADR tribunal is inappropriate relevant only for an additional court not an ADR process practiced worldwide," FBCCI said.
The chambers have also recommended that the government should allow taxpayers to go to the tribunal or the court if they are not satisfied with the decision of ADR.
MCCI has termed the provisions on withdrawal of cases from appellate authorities and courts to opt for ADR as 'serious disincentives' to any taxpayers.
The chambers have urged the NBR to form a new committee to rewrite the ADR law by dissolving the exiting one.
Business leaders have proposed to prepare the ADR law in the light of Arbitration law 2001 of Bangladesh and follow the ADR procedures as in vogue in developed and developing countries.
"The FBCCI, MCCI, DCCI and FICCI and the private sector in general strongly believe that ADR in Bangladesh will play a very effective role not only to facilitate speedy resolution of tax disputes but also to safeguard the interests of both taxpayers and the national revenue in particular," the apex chamber said in its report.
An estimated 18,438 revenue disputes are pending under which Tk 35 billion was still unrealised. Of the cases, 12,332 cases are with the NBR, 5,500 are with the appeals tribunal, 605 with the high court and one with the appellate division.
NBR member Farid Uddin said: "The government will finalise the ADR after consultation with all stakeholders." The ADR law will be framed in a participatory manner to make it workable in the country, said Farid Uddin who is dealing with the ADR law.