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" APPRAISAL OF ALTERNATE DISPUTE RESOLUTION MECHANISM APPRAISAL OF ALTERNATE DISPUTE RESOLUTION MECHANISM   By   Huzaima Bukhari and Dr. Ikramul Haq, Advocates   For the first time in the history of Income Tax Law in Pakistan, Alternate Dispute Resolution (ADR) option was provided by inserting section 134A vide Finance Act. 2004 which was aimed at extending the much-desired-for facility to taxpayers to avail administrative means for resolving disputes through mediation outside the ambit of convention appeal system. This provision required the Central Board of Revenue (C.B.R.) to notify procedures for (a) referral of disputes and (b) mediation of unresolved issues and (c) entering into binding agreements or offers in compromise. In the last 18 months this mechanism has failed to attract the actual potential that it entailed. This article attempts at analyzing the reasons for poor response. It also suggests certain ways to improve it.   The main idea behind this new provision was to provide arbitration of unresolved/disputed issues. Unfortunately no public debate was initiated prior to its insertion. The C.B.R. (de facto law maker) did not bother to elicit opinion from the stakeholders and experts. It is sad that the C.B.R. is unilaterally pursuing the tax reform agenda (sic) without involving the taxpayers and public at large, who will later pay back the heavy loan of over US$100 million provided by World Bank and others for this entire exercise. Time and again we have emphasised that no reform agenda can succeed unless the entire nation is taken into confidence and their participation is ensured at the time of enactment of laws and not at the stage of implementation alone.   The result of not consulting taxpayers, tax bars and other trade…