The TFJA’s Public Centre for Dispute Resolution begins operations

What alternative mechanisms can be processed?

The Public Centre may manage, on a non-exhaustive basis, the following procedures: 

1. Negotiation. A voluntary procedure whereby the parties themselves agree to resolve a dispute, in whole or in part, peacefully, or to prevent a future dispute, with the assistance of a facilitator. 
2. Mediation. A voluntary procedure whereby the parties agree to resolve a dispute, in whole or in part, peacefully, or to prevent a future dispute, with the assistance, support and guidance of a facilitator. 
3. Conciliation. A voluntary procedure whereby the parties involved in a dispute agree to resolve it, in whole or in part, peacefully, or to prevent a future dispute, with the assistance and active participation of a facilitator. 

It is important to note that the Public Centre is expressly prohibited from processing arbitration procedures as an alternative mechanism in administrative matters.

How are applications submitted?

Applications must be submitted physically or electronically to the Public Centre’s Filing Office. Once received, a facilitator will be assigned to act as mediator between the parties. 

The procedures may not exceed three months, with the possibility of an extension for a further three months. If an agreement is reached, a settlement will be signed by the parties and the facilitator, and such settlement will acquire the status of res judicata.

When is processing appropriate? 

Alternative mechanisms may be requested at the following stages: 

• During administrative proceedings (such as an appeal for reversal). 
• During the trial, once the claim has been admitted and before a final judgment is issued. 
• During the enforcement stage of a final judgment, provided the ruling has become final. 

It should be noted that these proceedings must originate from the Federal Administrative Justice Tribunal itself. 

Effects of initiating the procedure 

Once the process begins, all deadlines and enforcement effects of the administrative act will be suspended, as will the time limits for trials and enforcement of judgments. 

Why is this relevant for taxpayers? 

The commencement of operations of the Public Centre offers taxpayers an efficient alternative for resolving tax disputes through dialogue with the tax authorities and the mediation of accredited facilitators. These procedures may prove more agile than traditional litigation, providing a space to improve communication between taxpayers and tax authorities under the supervision of the Federal Administrative Justice Tribunal. 

Want to know how to leverage these mechanisms for your business? 

Contact us to learn how we can help you manage tax disputes efficiently and strategically.