Tax Glossary Definition
Expropriation refers to the legal process by which a government or public authority takes possession of privately owned property for purposes deemed to be in the public interest or for public use. Such actions are typically accompanied by financial compensation to the property owner, although disputes may arise concerning the fairness or adequacy of the compensation provided. Expropriation is often undertaken for projects like infrastructure development, urban planning, or resource utilization.
Example: A government may exercise expropriation powers to acquire private land for the construction of a new highway, offering compensation based on the property’s assessed market value.
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