Alternative Dispute Resolution (ADR) is a means of resolving legal disputes outside the courts.
ADR involves a neutral third party facilitating engagements between parties to a legal dispute.
ADR with Sars involves a Sars official being appointed to facilitate engagements between Sars and the taxpayer, which brings into question the objectivity of the process.
When the Sars official representing the Commissioner reaches consensus with the taxpayer on a resolution during the ADR meeting, this must be approved by a Sars committee, which may reject the resolution on grounds not raised in the meeting. – Siphesihle Ngubane, senior associate in the Shipping and Logistics Department at Shepstone & Wylie Attorneys.