HMRC explained that when litigation is involved, there are factors outside its control and it must work with the court system to resolve cases. HMRC said it is focused on reaching agreement with businesses and avoiding litigation where it can, subject to appropriate governance and oversight arrangements. It told us that it is increasingly using alternative dispute resolution, which has helped to reduce the number of cases going to litigation as well as the time taken on cases. HMRC emphasised, however, that litigation remains an important safeguard for customers when they disagree with HMRC’s viewpoint. In these cases, HMRC said it is focused on improving its legal function and how it works with compliance teams and the Crown Prosecution Service to make sure cases can proceed as efficiently as possible.27 IT transformation