ALTERNATIVE DISPUTE RESOLUTION (ADR)

Prepared bv:

Ranjan Kumar Bhowmik rcHan

Member
National Board of Revenue

tax related disputes'

Alternative dispute resolution is a newly introduced method of resolving
has been defined
ADR was introduced in our country through Finance Act, 2011. "Dispute"
as objections made by an assessee against assessment of his income
at a figure
higher than the figure shown in the return'

of an income tax
An assessee may apply for ADR directly if he is aggrieved by an order
authority. He may also opt for ADR in respect of a dispute which
is pending before any
process of ADR in respect of a
income Tax Authority, Taxes Appellate Tribunal or Court. The
may be initiated only after
dispute pending before an income tax authority, Tribunal or Court
obtaining 'permission' from the concerned lncome Tax Authority,
Tribunal or court'

year has
An assessee cannot opt for ADR if income tax return for the relevant assessment
paid.
not been filed or tax on the basis of return has not been

An application for ADR shall be submitted in the prescribed from

and accompanied by a fee
within 30 days of
of Tk.500 for each assessment year. The application has to be submitted
applicable. The application
receiving the demand notice or the said "permission" as may be
passed by the NBR in this regard'
has to be submitted to the authorities specified in the rule

authority then the

lf the application for ADR is direcily against the order of an income tax
appeal jurisdiction lies. lf it is in
application has to be filed to the appellate authority where its
Tribunal, court etc' then the
respect of a dispute pending before any appellate authority,
was pending. The receiving
application has to be filed to the authority where the dispute
authority will fonruard the application to the NBR within
the next working day after receiving it'

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The Board will appoint a Facilitator for every ADR process. The Facilitator will try to resolve
the tax dispute through mutual negotiation between the assessee or his representative and
the Commissioner's representative who will be a person not below the rank of DCT. The
facilitator will fix the place, time and date for negotiation between the two sides and inform
them through a notice.
The Facilitator will be paid for each case of ADR a fee equal to 10% of the disputed tax
subject to a minimum of Tk.5000/- and maximum of Tk.50,000/-. 50% of this fee will be borne
by the assessee and 50% bY the NBR.

There may be partial or full agreement on any dispute. There may also be no agreement at
all. However, the Facilitator will record the progress of the ADR in writing and communicate
the result of the ADR within 15 days from the date of agreement (full or partial) or

disagreement, as the case may be, to all the parties concerned including the NBR in the
prescribed form. Where an agreement is reached wholly or partially the Facilitator shall
record in detail terms of the agreement including the amount of tax payable or refundable and
the time frame for payment where tax payment is involved. The applicant assessee shall be
liable to pay the taxes due as a result of ADR within the time frame and in the manner
decided in the ADR.
The agreement shall be signed by both sides and the Facilitator. Where no agreement is
reached the Facilitator will record the reasons for such disagreement and inform all the
parties concerned in writing in a prescribed form containing signatures of both the parties.

A decision in ADR has to be reached within 2 months from the end of the month in which the
application for ADR was filed. Othenruise it will be assumed that no decision has been
reached.

ln case of total disagreement or partial agreement in an ADR the assessee may prefer to go
to appeal, Tribunal or H.C. as the case may be for further relief. ln computing the limitation of
time for appeal, Tribunal etc. the time elapsed in the process of ADR shall be excluded'

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