1. Experience of ADRC, Adjudication/Appeals and Mediation
Anwar Kashif Mumtaz
Partner
Saiduddin & Co., Advocates
Taxation, Management & Company Law Consultants

2. The Spectrum of Dispute Resolution
Negotiation
Mediation
Arbitration
Litigation

3. Experience of Adjudication/Appeals
Cumbersome
Time constraint
Costly
Lengthy
Lawyers Centered

4. What is ADR ?
ADR is a system which operates side by side with the existing judicial system.

5. Provisions Pertaining to ADR
Income Tax
Section 134 A of the Income Tax Ordinance, 2001.
Sales Tax
Section 47A of the Sales Tax Act, 1990.
Federal Excise
Section 38 of the Federal Excise Act, 2005.
Custom
Section 195 C of Customs Act, 1969

6. Reasons to bring ADR in Tax Laws
To minimize litigation
Cost effective
Minimize the work load of appellate forums
Early disposal
To minimize delay in collection of tax
Delivery of justice and redressal of governance

7. Cases referred for ADR
All disputes pending before any Appellate Forums like
CIT(A) /Collectorates
Appellate Tribunals
High Courts
Supreme Court of Pakistan.
Except criminal cases or question of law having larger revenue impact

8. Latest progress in ADRCs (Both Direct and Indirect Taxes)
As per FBR Website
No. of App.
App. rejected or withdrawn
committee formed
recommendations received
Recommendations not accepted
Recommendations implemented
Direct
263 98
165
108 29
102
Indirect
248 52
176
118 25 61

9. Reason for Non Effectiveness of ADRC
Members are working voluntary without any Remuneration
Committee members are not trained for the assignments
FBR is a Party and final decision maker at the same time
So many adjournment allowed
Delay in final response from FBR

10. A Definition of Mediation
Mediation is a Flexible process conducted confidently in which a neutral person actively assist parties in working towards a negotiated agreement of a dispute or difference with the parties in ultimate control of the decision to settle and the terms of resolution

11. The Spread of Mediation
Finland UK
USA
Australia
New Zealand
France
Germany
Ireland
South Africa
Denmark
Sweden
Norway
Spain
Portugal
Greece
Italy
Kenya
Uganda
Netherlands
Singapore

12. Comparisons Negotiation Mediation Arbitration Litigation Voluntary
Usually Voluntary
Not Voluntary
Enforceable as Contract
Binding
Binding, subject to Appeal
No third-party neutral
Neutral appointed by parties to control process not decision
Neutral agreed by parties to impose decision
Impose decision
Informal
Informal & flexible model
Meant to be less formal but now more rigid
Formal
No set rules on how to negotiate, may focus on past
No set rules on how to negotiate, may focus on future
Set rules with parties presenting evidence, focus on past
Each party present evident and arguments, focus on past.
Mutually acceptable agreement
Private
Public
Parties may or may not be involved in negotiation
Parties presents & free to engage fully
Parties may attend but participate only as witness

13. Key benefits of Mediation
Cost effective
Speedy
Wider range of outcomes possible
Parties have input into outcome
Higher satisfaction with outcome
Less likely to require enforcement