Abatement

Abatement refers to the reduction, lessening, or termination of something. Specifically, in legal and tax contexts, it typically pertains to the suspension or reduction of lawsuits or taxes.
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Definition

Abatement in general refers to a reduction, lessening, or termination of something. In specific contexts, it carries particular meanings:

  • Abatement in Law: In legal proceedings, abatement can refer to either the termination or a temporary suspension of a lawsuit. This could occur due to a variety of reasons such as the death of a party involved, procedural errors, or settlements reached before the final judgment.

Taxation Context

  • Abatement of Taxes: In taxation, an abatement refers to a rebate, reduction, or decrease in the amount of taxes owed. This can occur via official government measures or through appeals made by taxpayers seeking relief on taxes due to specific conditions like property damage or environmental conservation.

Examples

  1. Lawsuit Abatement: A case may be abated if the plaintiff fails to serve the defendant properly or if jurisdictional issues are present.
  2. Tax Abatement: A city might offer a tax abatement to encourage businesses to set up in a particular area, reducing their local property taxes for a set period.

Frequently Asked Questions (FAQs)

What causes a lawsuit to abate?

Lawsuits can abate due to several reasons including the death of a party involved, lack of proper service of process, jurisdictional issues, procedural errors, or settlement between the parties before a judgment.

Are tax abatements permanent?

No, tax abatements are typically temporary measures. They are often used to stimulate economic activity, provide relief for certain conditions like natural disasters, or encourage specific behaviors like environmental conservation.

Can an abatement be reversed?

Yes, in certain situations, an abatement can be reversed. For example, a tax abatement agreement might be voided if the recipient fails to meet specific conditions set by the granting authority.

  • Tax Rebate: A refund on taxes when the tax liability is less than the taxes paid.
  • Tax Reduction: The lowering of the rate at which taxes are paid, which reduces the overall tax bill.
  • Suspension of Proceeding: A temporary halt in legal proceedings.

Online Resources

Suggested Books for Further Studies

  • “Principles of Taxation for Business and Investment Planning” by Sally M. Jones and Shelley Rhoades-Catanach
  • “Tax Savvy for Small Business” by Frederick W. Daily
  • “Civil Litigation Handbook” by Susan Cunningham-Hill and Karen Elder

Fundamentals of Abatement: Business Law and Taxation Basics Quiz

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Abbreviated Accounts
Abandonment