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During the last decades, almost equal to the commercial dispute resolution, ADR gained enormous currency in tax dispute resolution system of many jurisdictions. The previous criticisms on the amenability of tax disputes to ADR, which is assumed as a private forum aimed at resolving particular dispute than sheltering public interest, are now trounced. This book explored the various contribution of the ADR in tax administration by complementing the limitations of state tax dispute resolution forums and piecemeal administrative settlement practices. After a research to pre-existing literatures, laws and practices in Ethiopia and other tax administrations, it is determined, that ADR could benefit not only the tax authority and the taxpayer but also the general public. However, since tax is a part of public administration where biggest public interest is involved, the introduction of this new private tax dispute resolution system should also be taken cautiously.