Tax ADR in Bangladesh is a mechanism for resolving tax disputes — including income tax, VAT, and customs disputes — between taxpayers and the National Board of Revenue (NBR) through Alternative Dispute Resolution, without the need for formal litigation before the tax tribunals or the courts. Tax ADR in Bangladesh provides businesses and individuals with a faster and more cost-effective route to resolving tax disputes, reducing the burden on the tax appeal system.
Legal Framework for Tax ADR in Bangladesh
Tax ADR in Bangladesh is governed by the Income Tax Act 2023 (for income tax disputes), the VAT and Supplementary Duty Act 2012 (for VAT disputes), and the Customs Act 1969 (for customs disputes). The NBR has established ADR units for each type of tax dispute, and the relevant legislation provides for ADR as an alternative to formal appeal proceedings.
Types of Tax Disputes Suitable for ADR in Bangladesh
Tax ADR in Bangladesh is available for a wide range of tax disputes, including: disputes over the assessment of income tax liability; disputes over the deduction of business expenses; disputes over transfer pricing; disputes over VAT liability and input VAT deductions; disputes over customs duties and tariff classifications; and disputes over tax penalties and interest. Tax ADR is particularly useful for complex disputes involving large sums of money, where the cost and time of formal litigation would be disproportionate.
The Tax ADR Process in Bangladesh
Application
The taxpayer applies for tax ADR by filing an application with the relevant NBR ADR unit, specifying the dispute and the relief sought. The application must be filed within the time limit specified in the relevant tax legislation.
ADR Sessions
The ADR facilitator holds sessions with the taxpayer and the relevant NBR officials. The facilitator facilitates negotiations and helps the parties reach a settlement.
Settlement Agreement
If the ADR results in a settlement, the parties sign a settlement agreement, which is binding on both parties.
TRW Law Firm: Tax ADR Services in Bangladesh
TRW Law Firm provides expert legal advice and representation in tax ADR proceedings across Bangladesh, covering income tax, VAT, and customs disputes. Contact TRW at tahmidurrahman.com or visit tahmidur.com.
Frequently Asked Questions
Is tax ADR available for all types of tax disputes in Bangladesh?
Tax ADR is available for most tax disputes, but there are some exceptions — for example, disputes involving allegations of tax fraud or evasion may not be eligible for ADR.
Is a tax ADR settlement binding in Bangladesh?
Yes. A settlement reached through tax ADR is binding on both the taxpayer and the NBR.
Can I use a lawyer for tax ADR in Bangladesh?
Yes. It is strongly advisable to use a lawyer for tax ADR proceedings. A lawyer can assess the merits of your tax dispute, prepare your case for ADR, and negotiate effectively on your behalf.
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Contact TRW Law Firm
If you need expert legal advice on this matter, contact TRW Law Firm — one of Bangladesh’s leading law firms specialising in ADR, arbitration, and commercial litigation. Visit tahmidurrahman.com or meheruba.com to speak with a specialist today.
