What is Alternative Dispute Resolution (ADR)?

ADR is an alternative method of resolving tax disputes outside the conventional:

• Judicial process (Courts of law)
• Quasi-judicial process, including the Tax Appeals Tribunal (TAT)

It provides a facilitative mechanism that expedites the resolution and management of tax disputes.

Parties to an ADR Process

• Taxpayer
• Commissioner
• Facilitator

Role of Parties

• Maintain decorum and uphold confidentiality.
• Participate in all discussions fairly, openly, and diligently.
• Make full disclosure of all material facts relevant to the tax dispute.
• Attend all scheduled ADR meetings.
• Adhere strictly to the agreed timelines.

Applying for ADR

The taxpayer is required to submit a duly completed ADR application form together with all supporting documents.

Download ADR Application Form

Submit the completed form and attachments to the Tax Dispute Resolution Office, Ushuru Pension Towers, Block B, 7^th Floor, P.O. Box 48240 – 00100, Nairobi.

Alternative Dispute Resolution (ADR) Overview

Alternative Dispute Resolution (ADR) provides taxpayers and the Kenya Revenue Authority (KRA) an opportunity to resolve tax disputes amicably without resorting to lengthy litigation. It promotes dialogue, reduces case backlog, and encourages voluntary compliance through consensus.

Tax Disputes Eligible for ADR

All tax disputes can be resolved through ADR with the following exceptions:

• The settlement would be contrary to the Constitution, the revenue laws, or any other enabling legislation.
• The matter borders on a technical interpretation of law.
• It is in the public interest to have judicial clarification of the issue.
• There are undisputed judgments or rulings on the matter.
• One of the parties is unwilling to engage in the ADR process.

ADR Timelines

• 120 days — as provided under Section 55 of the Tax Procedures Act (TPA).
• Court-initiated ADR — dependent on the timelines granted by the court.

• Accessible to all

• Cost effective

• Confidential

• Without Prejudice

• Preserves relationships

• Improves compliance.

What is Alternative Dispute Resolution (ADR)?

ADR is an alternative method of resolving tax disputes outside the conventional:

• Judicial process (Courts of law)
• Quasi-judicial process, including the Tax Appeals Tribunal (TAT)

It provides a facilitative mechanism that expedites the resolution and management of tax disputes.

Parties to an ADR Process

• Taxpayer
• Commissioner
• Facilitator

Role of Parties

• Maintain decorum and uphold confidentiality.
• Participate in all discussions fairly, openly, and diligently.
• Make full disclosure of all material facts relevant to the tax dispute.
• Attend all scheduled ADR meetings.
• Adhere strictly to the agreed timelines.

Applying for ADR

The taxpayer is required to submit a duly completed ADR application form together with all supporting documents.

Download ADR Application Form

Submit the completed form and attachments to the Tax Dispute Resolution Office, Ushuru Pension Towers, Block B, 7^th Floor, P.O. Box 48240 – 00100, Nairobi.