LSS30200 | Handling a dispute: Working collaboratively

You should always aim to work in a collaborative, non-confrontational way when handling a dispute.

Working collaboratively means that:

• you should try to avoid a dispute by explaining the risks and how documents and information can address the risk

• if you recognise that you have a different view from the customer, you should inform the customer so that you are both aware there is a dispute and that it needs to be resolved

• you should act to resolve the issue and explain how you intend to resolve it

Collaborative working might include, for example:

• discussing transactions or issues on a real time basis (pre-transaction or pre-return)

• holding an open dialogue that sets out the specific task risk identified and avoids unnecessarily wide-ranging opening enquiries

• early discussion of the disputed issue to understand what relevant facts are needed and which law will apply to those facts

• agreeing a timetable with milestones and target dates for:

  • establishing facts

  • providing information or documentation

  • reviewing documentation

  • reaching decisions

  • testing conclusions

  • providing updates on progress

  • clarifying understanding of relevant facts

  • agreeing the form in which information is to be provided

• discussing, sharing and testing technical arguments to assess relevant strengths and weaknesses in analysis

• agreeing the key questions to be answered in order to resolve the dispute

• exploring possible alternative interpretations of the facts or law

• working with the person or their agent to agree revised figures or required action

Even where a dispute seems to have reached an impasse, it may still be possible for you to work with the person or their agent. For example, if a matter is heading towards litigation, you can still:

• agree the key question or questions that need to be determined by the tribunal or courts

• seek to narrow down the points in dispute

• jointly draft an agreed statement of facts

• consider Alternative Dispute Resolution (ADR) involving a third-party facilitator, see ADRG01000 and use Alternative Dispute Resolution to settle a tax dispute

• be open to discussing the relevance or impact of any new facts that come to light or alternative technical arguments that are identified

• agree a timetable for the preparatory steps to litigation

• arrange periodic meetings to discuss the case and give or receive updates on progress

A collaborative approach may not be possible or appropriate in all cases, see LSS30900.