1 www.KRA.go.ke 20/06/2017

Alternative Dispute Resolution (ADR)

Presented by :Corporate Tax Dispute Resolution(KRA)ICPAK – IPSAS WorkshopForum on 16th June, 2017.

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Scope

Why ADR ?

Legal Framework for ADR

Synopsis of ADR Framework

ADR Process flow

ADR Scorecard

ADR Challenges

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Why ADR?

ADR

Expedite resolution of tax disputes

Less costly (win-

win/time taken).

Encouraged by the Kenyan Constitution

Release revenue for

early collection

Relationship Management

Building Trust thru’

Facilitation of dispute

resolution

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Legal framework for ADR

Is ADR backed by Law?Legal

framework for ADR

Constitution of Kenya

Article 159 (2) (c)

Revenue statutes –Objection

process

Tax Procedure

Act (TPA),2015

(Sec 55)

Tax Appeal Tribunal Act (TATA), 2013

(Sec 28)

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Synopsis of the ADR Framework – www.kra.go.ke

ADR FRAMEWORK

Who can initiate ADR?

Commissioners/TP

When can ADR kick in? Within

Pre-assessment/Post

-assessment

TAT/Courts.

Type of ADR adopted by KRA?

- Facilitated Mediation/Nego

tiationWho can facilitate an ADR

discussion? –Internal & External

facilitator

Breakdown of negotiation ? –Referred back

TAT/Courts

Consensus in negotiation -

ADR agreements,

implementation & Execution

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ADR Process flow

Request for ADR -Documentation

Suitability Analysis ( Quality Control)

Dispute unsuitable for ADR

Case Review Forum and commencement of ADR

discussions

ADR Outcomes

Referred back to dept/TAT/Court with recommendations

consensus Non Consensus

Sign ADR agreement Refer to dept/TAT/Court

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ADR Scorecard & Achievements

ADR Scorecard

188

disputes resolved

Increased uptake of

ADR

Reduced time

taken to resolve

Kshs. 8.3 billion as revenue

yield

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Challenges

Managing Expectation/Perceptions

Parties adopting hardline approach instead of a win-win approach

Failure to adhere to timelines hence delay

Slow uptake of ADR in regions outside Nairobi and Mombasa

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