Tax alternative dispute resolution assistance
Alternative dispute resolution (ADR) is one of the routes that may be available during a SARS dispute. This service assesses whether ADR fits your matter, explains the available process choices, helps prepare the evidence, and is clear about its limits. ADR settles a dispute - it is not a debt compromise, and it does not guarantee access or a settlement.
ADR settles a dispute - it is not a debt compromise
A common confusion is treating ADR as a way to reduce tax debt. It is not. ADR is a process for resolving a disagreement about an assessment or finding; whether the underlying amount changes is a consequence of that resolution, not a guarantee. Access to ADR is not automatic, and no settlement is promised.
What is assessed before ADR is pursued
Three factors shape whether ADR is worth pursuing for your matter. None of them guarantees access or a result - they determine whether the route is appropriate before any time is invested in it.
Nature of the dispute
ADR tends to suit disputes where the facts are genuinely in play and both sides may benefit from narrowing the issues, rather than disputes that turn on a pure point of law or a clear factual error.
Willingness of both parties
ADR is a collaborative route. It depends on both the taxpayer and SARS being open to engagement, and on the available procedures at the stage the dispute has reached.
Evidence readiness
A useful ADR process needs the underlying evidence organised - the records, reconciliations and explanations that support your position - so the issues can be discussed substantively rather than in general terms.
What ADR assistance is - and is not
What ADR assistance involves
- Assessing whether ADR fits the nature and stage of your dispute before any step is taken.
- Explaining the available process choices and what each would require of you.
- Helping organise the evidence so the issues can be discussed substantively.
- Confirming scope and representation options only after a written engagement is agreed.
What ADR assistance is not
- A debt compromise. ADR settles a dispute; it does not reduce what you legally owe.
- A guarantee of access. ADR is not available in every matter or at every stage.
- A promise of settlement. No agreement is assured, and the matter may return to the formal route.
- A way to bypass deadlines. Statutory timeframes still apply while ADR is considered.
Helpful details for the assessment
You do not need the full case file to begin. These high-level details help assess whether ADR fits and whether a deadline is live. Do not send sensitive documents or passwords with the initial enquiry.
Questions about alternative dispute resolution
Is ADR the same as a compromise?
No. ADR is a process for resolving a disagreement about an assessment or finding; a compromise is a separate request to reduce tax debt that cannot be paid. The two answer different questions. ADR may result in a changed assessment, but that is a consequence of resolving the dispute - not a debt-reduction mechanism. See compromise versus payment plan for how debt relief differs from dispute resolution.
Is every appeal suitable?
No. ADR is one option among the post-objection routes, and it is not appropriate for every matter. Disputes that turn on a clear factual error or a pure point of law may be better served by the formal objection or appeal route. The assessment considers ADR as one option, not as a guaranteed alternative to an appeal.
What happens if no agreement is reached?
If ADR does not result in an agreement, the matter returns to the formal dispute route - objection, appeal, or whichever stage applies. ADR does not forfeit your right to pursue the formal route, but statutory deadlines still apply while it is considered, so a suspension of payment may be relevant if collection is underway.
Assess whether ADR fits before you commit to it
A confidential assessment reviews the nature and stage of your dispute, considers whether ADR is appropriate, and checks the deadline against your specific notice. No documents or passwords are required to begin.