Business, Legal & Accounting Glossary
Noun: the action of being abated or abating: subsiding or ending.
Law: the removal or reduction of a nuisance.
A reduction. After a death, abatement occurs if the deceased person didn’t leave enough property to fulfill all the bequests made in the will and meet other expenses. Gifts left in the will are cut back in order to pay taxes, satisfy debts or take care of other gifts that are given priority under law or by the will itself.
(often in legal use) the ending, reduction, or lessening of something.
Abatement refers to a reprieve from or reduction in debt, tax or other payment obligation faced by an individual or company.
The most common form of abatement is tax abatement.
Tax abatement is also an incentive utilised by cities to encourage the redevelopment of distressed areas by providing real property tax abatement and eminent domain. Another type of abatement is related to the payment of rent. If a building is destroyed by fire, water damage or another accident, a renter is usually granted abatement from making rental payments.
A lesser-known form of abatement is penalty abatement, commonly associated with the Internal Revenue Service (IRS). Penalty abatement can help an individual or business reduce or eliminate an IRS penalty and/or interest. To request penalty abatement from the IRS, certain requirements must be met.
For example, penalty abatement might be granted if a business or individual is able to prove reasonable cause as to why they were unable to meet their tax obligations.
To reduce the intensity, amount or degree of a given activity.
Abatement is also used to describe the reduction of the emission of pollutants in environmental economics.
Technical abatement is a term used when referring to measures which involve production activities of businesses, for example, an introduction of a new, or an amendment to an existing process or technology.
Behavioural abatement is the changing of behaviours of consumers, or the changing of lifestyles in the customers.
The question of the amount of individual incomes only comes before the authorities when claims for exemption and abatement are made.
The investor was able to secure a tax abatement for the grade 2 listed building, in exchange for promising to create affordable housing for disadvantaged members of the local community.
The abatement of a nuisance is the suppression thereof.
Taxation
Will
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This glossary post was last updated: 8th October, 2021 | 742 Views.