What does "de minimis" refer to?

The term "de minimis" originates from Latin, meaning "about minimal things." In legal and business contexts, it refers to something that is so minor or trivial that it does not warrant consideration or concern. This is why the choice referring to "on a tiny amount" is accurate; it captures the core essence of de minimis as something that is insignificant or not worth addressing in detail.

For example, in tax law or regulatory frameworks, de minimis thresholds are often established to exclude minor infractions or amounts from scrutiny, recognizing that they do not have a substantial impact overall. This helps to streamline processes by allowing entities to focus on more significant issues rather than getting bogged down by trivial matters.