Comments to answers

What are the main procedures used to resolve disputes before commencing proceedings in a civil court/tribunal?

In recent times, the Kenya Revenue Authority has established an alternative to the formal dispute resolution process described above (see Question 4) in the form of alternative dispute resolution (ADR), which can be invoked at various stages of the tax dispute resolution process.

In Kenya, ADR is a voluntary, participatory and facilitated discussion over a tax dispute between a taxpayer and the Commissioner that can be initiated by either of the parties by filing a notification to engage in ADR.

Where the notification to engage in ADR is made to either the Tax Appeals Tribunal (TAT) or to the court, the party making the request must submit a written request accompanied by a settlement proposal. The settlement proposal must be submitted whether it is the taxpayer or the Commissioner (or his agent) making the request to engage in ADR. The TAT or the court can then stay the hearing of the dispute (and any existing orders) for the period that the dispute is subject to ADR discussions.

The parties must be guided by the rules of engagement that they agree between themselves, together with any applicable statutory rules. All relevant documentation must be provided during the ADR discussions to support the matters subject to dispute and guide the ADR process.

The taxpayer can opt to act on his own behalf during the ADR discussions, or can be accompanied by a representative of his own choosing or a tax adviser.