A Compulsory Research Report Submitted to Mzumbe University – Mbeya Campus College in Partial Fulfillment of the Requirement for the Award of Bachelor Degree of Laws [LL.B] of Mzumbe University
Tax dispute resolution mechanism in Tanzania is through litigation and ADR processes. Litigation is the „traditional‟ mode of settlement when a tax dispute arises. The study examines inefficiency of tax dispute resolution mechanism and the applicability of the ADR processes in tax disputes in Tanzania. ADR is not effectively used resolving tax disputes. The tax disputes resolution machinery has not specified rules of procedure or practice to resolve complaints or appeals through mediation, conciliation or arbitration. Absence of rules of procedure has led to ineffective use of the ADR processes and hence continued delays in resolution of tax disputes in Tanzania. This study highlights the inefficiency of the tax disputes mechanism and discusses how the use of ADR processes in resolving tax disputes can effectively reduce case backlogs at the appeals machinery. The study concludes that absence of specific rules of procedure stipulating how the disputes resolution machinery may exercise their powers to resolve tax disputes by mediation, conciliation or arbitration hinder the effective inclusion and application of ADR processes in tax disputes resolution. And finally the study recommends that law reform and administrative actions should be undertaken by the Government for ADR processes to be effective in expediting tax dispute resolution.