Abstract

This article explores the applicability of Alternative Dispute Resolution (ADR) mechanisms within the Tax Ombudsman Office through a comparative analysis of the legal and institutional frameworks in Tanzania and the USA. The research examines how ADR mechanisms, when integrated into the tax dispute resolution processes, can enhance the efficiency and effectiveness of taxpayer grievance handling. The study highlights the establishment and operational roles of the Tax Ombudsman Office in Tanzania and its U.S. counterpart, focusing on their respective legal frameworks and institutional structures. The analysis reveals that while Tanzania's Tax Ombudsman Office aims to address taxpayer complaints and ensure fair tax administration, its effectiveness is hampered by concerns about independence and capacity. In contrast, the U.S. system, which includes the Internal Revenue Service (IRS), the Taxpayer Advocate Service (TAS), and the U.S. Tax Court, demonstrates a well-established ADR mechanism embedded within a robust legal framework that provides comprehensive taxpayer support. By comparing these frameworks, the study identifies best practices and potential improvements for Tanzania’s tax dispute resolution processes. The findings suggest that adopting ADR mechanisms within Tanzania’s Tax Ombudsman Office could significantly reduce dispute resolution time and costs, enhancing transparency and taxpayer satisfaction. This comparative analysis offers valuable insights for policymakers aiming to reform tax dispute mechanisms and improve taxpayer protection in Tanzania.

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