Waqar Shah explains why mediation is very often the best course to take to resolve a contentious tax matter with HMRC.
In a perfect world my role would not exist. There would be no need for there to be contentious tax solicitors (or contentious tax advisers of any kind) as it would be perfectly clear to both the tax authority and the taxpayer the amount of tax due in every situation and this would be duly paid. Until we are able to reach this tax utopia, those that are able to help clients navigate the complexities of contentious tax issues are (unfortunately) here to stay. However, part of that process should involve looking at different ways to resolve issues – not just committing the parties to a (potentially expensive) court or tribunal hearing.
It may not be commonly understood, but litigation of any variety can take years to conclude. Tax litigation can include those matters which are both technically complicated but also factually heavy.
Therefore, a tax dispute is not immune from potentially needing to go through a few levels of the appellate system, over the course of some years.
In other disciplines, the use of mediation is widespread; it is for that reason that the majority of civil disputes do not reach a courtroom as they are settled beforehand. Indeed, alternative dispute resolution (ADR) is becoming an increasingly efficient manner of resolving such matters, without needing to defer to lengthy, and often costly, tribunal/court litigation.
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