A Specific Proposal on the Utilization of Alternative Dispute Resolution Mechanisms in Tax Controversies

Abstract

This article aims to document for posterity a proposal presented by the author in late 2025 across various academic forums, such as the Academy of Political and Social Sciences, the Venamcham Tax Committee, and the Postgraduate Program in Tax Law at the Central University of Venezuela; it seeks to promote the use of alternative dispute resolution mechanisms in the field of taxation, despite the evident reluctance of tax authorities to embrace them, notwithstanding existing constitutional and legal provisions that encourage their application. The paper comprises a background section, models in comparative law that could serve as inspiration, relevant recommendations from the Latin American Tax Law Conferences, and a synthesis of the proposal for adopting closing agreements or administrative settlement agreements between the Tax Administration and taxpayers, which are aimed at preparing mutually agreed solutions to tax disputes, while also paving the way for more complex mechanisms such as tax settlement and arbitration. Thus, the author –once again– fulfills the objective he set for himself in his inaugural work for the aforementioned Academy in 2004.