Legal and institutions challenges in resolving tax disputes through alternative dispute resolution in Tanzania

Alternative dispute resolution (ADR) is a structured process of dispute resolution which involve settling of the disputes amicably out of court. It is an attempt by litigants and their lawyers to resolve their disputes amicably other than the adversarial litigation process. Alternative Dispute Resolution in Tanzania has its legal basis in the Constitution of the United Republic of Tanzania, 1977(as amended from time to time). This article examines both legal and institutional challenges on resolving tax disputes through alternative dispute resolution in Tanzania. The challenges include; the uncertainty of laws, lack of clear procedures, lack of tax professionals, legislation and technology, non-adherence to the principles of natural justice, haphazard and several amendments of the tax laws, lack of procedures of handling tax disputes at the Court of  Appeal of Tanzania, delay of cases, backlog of cases at Tax Revenue Appeal Board (TRAB)  and Tax Revenue Appeal Tribunal(TRAT), unreadiness to settle disputes by Commissioner General, lack of adequate officers and small number of officers dealing with tax disputes, unrepresented parties and advocates. This article emphasizes that these challenges devastate the performance of the institutions dealing with tax dispute resolution through alternative dispute resolution and the whole process. Thus, it calls upon for the amendments of laws, regulations and rules, and the need for the institutions to solicit more resources and assistance from government and stakeholders.