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2010: the Year of Tax Arbitration?
In light of the ineffectiveness of tax litigation and the increased mistrust of taxpayers in relation to tax decisions, with the decision-makers very often hiding behind mere decisions of form, it is imperative that we weigh up alternative methods for resolving tax disputes, such as mediation, conciliation, and tax arbitration itself, in order to deal with disputes accumulated and arising out of relations between the State and the taxpayer, thus reversing the feeling of injustice in this area.
The situation, characterised by proceedings that are held up for years and which eventually expire, if not for the intervention of legislators in relation to successive acts interrupting and suspending proceedings, naturally leads to considerable financial prejudice to public funds. Even worse, this situation leads to an undesirable feeling on the part of citizens that it may be beneficial not to pay taxes merely because of the State’s ineffectiveness. All in all, we have poor administration of public monies and a system that doles out real tax injustice and evokes feelings that this must be thwarted.