Access to Justice through Mediation in Tax Disputes: A Case Study of Pakistan

Pakistan faces a significant backlog of civil dispute cases, hindering the administration of justice and jeopardizing the nation's social, political, and economic stability. Mediation is an alternative dispute resolution procedure that facilitates the attainment of justice in the resolution of tax issues. The primary aim of mediation is to enhance the trust relationship between tax authorities and relevant taxpayers by offering an informal process for resolving tax issues. The implementation of Pakistan's tax legislation, despite the introduction of an Alternative Dispute Resolution (ADR) system, encounters obstacles as ADR Committees struggle to resolve tax issues effectively and efficiently due to resource limitations. Furthermore, numerous countries have established mediation legal frameworks pertaining to tax disputes. Such legal methods should be integrated into Pakistan's tax legislation, since this approach aligns with the operational framework of Pakistan's adjudicative system, given that the country has long been acquainted with this process through various channels. This paper examines the deficiencies in the tax dispute resolution system and concludes with recommendations based on the evolving mediation mechanisms for tax disputes in other jurisdictions. Keywords: Alternative Dispute Resolution (ADR), access to justice, mediation, taxation, ADR committees