On January 29, 2024, the General Law on Alternative Dispute Resolution Mechanisms came into force, introducing the application of such mechanisms in administrative matters, something previously not contemplated in any other regulation. To implement this, on May 12, 2025, the Regulations of the Public Center of the Federal Court of Administrative Justice ("TFJA") were issued, which identify negotiation, mediation, and conciliation as alternative mechanisms to trials; arbitration is expressly prohibited.
Considering the excessive workload of the TFJA, as well as the costs and time involved in any trial, we believe that the possibility of resolving tax and administrative disputes through these mechanisms is a great opportunity that should undoubtedly be seized. It is important to note that, in accordance with the Regulations, these mechanisms may last up to six months.
It should be noted that both the General Law and the Regulations allow for trials already in progress, including those already resolved but whose judgment has not yet been served, to be concluded in the Public Center, provided that the trials are being processed before the TFJA itself. Likewise, if the matter is still before an administrative authority, the intervention of the Public Center may be requested, provided that the specific regulations of the administrative procedure do not provide for an alternative dispute resolution method.
The distinction between each mechanism is as follows:
- Negotiation: The parties themselves resolve a dispute.
- Mediation: The parties are assisted and supported by a facilitator, who will lead the procedure but will not actively participate.
- Conciliation: The facilitator does act actively to resolve the dispute.
To facilitate access to these mechanisms, the possibility of processing them online is provided, while also remaining open to in-person processing, and even allowing for hybrid processing.
Likewise, both the General Law and the Regulations provide for the suspension of procedural deadlines upon the initiation of an alternative mechanism, which allows for ample opportunity to conclude the dispute and, if this fails to happen, to continue with the normal course of proceedings and trials.
Currently, the head of the Public Council has not been appointed, nor are the operating manuals it will issue available; nor have the certifications been issued to the facilitators of such mechanisms. Therefore, even though it is not yet possible to begin these processes, the issuance of the Regulations is a key step toward ensuring that alternative dispute resolution mechanisms in fiscal and administrative matters materialize in the near future.
