What Is Tax Recoupment?

What Is Tax Recoupment?

What Is Tax Recoupment?

Tax recoupment refers to the monetary reimbursement that an individual or organization receives from the government for having paid a tax that is determined as inappropriate. This recoupment is usually equal to the amount of money that one was taxed.

There are many factors that lead to the issuance of tax recoupment. For instance, if an organization acquires new renewable resource assets, such as solar hot water systems or photovoltaic solar cells, it stands a chance of receiving the incentive. Another factor that can guarantee an organization this incentive is if it goes green and preserves environmental amenities through actions like planting extra trees or desisting from removing remnant vegetation.