exemption

Vocabulary Word

Definition

You know when you're excused from a duty or obligation? That's called an 'exemption'. For example, some people don't have to pay taxes because they're exempt.

Examples in Different Contexts

In corporate taxation, claiming 'exemption' is a strategic consideration. A tax advisor might say, 'Leveraging available tax exemptions can significantly reduce our financial liability and optimize our after-tax profits.'

Practice Scenarios

Business

Scenario:

There's a significant increase in our tax bill this quarter. We liked your previous idea of planning for tax deductions.

Response:

To reduce our tax bill, have we explored potential exemptions in addition to deductions?

Public-Policy

Scenario:

The new environmental regulations are causing concern among local farmers. We're having a meeting next week to discuss possible solutions and exceptions for them.

Response:

If these regulations are hindering agricultural productivity, maybe some exemptions need to be considered for the farmers.