Penalty

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Penalty

 

in civil law, a means of ensuring performance of obligations.

The penalty is a sum of money determined by law (legal penalty) or under contract (contract penalty) which the responsible party is obligated to pay if the obligation is not carried out or is carried out improperly. A penalty is paid for violation of contract conditions regarding time, quality, and method of per formance; it is recovered regardless of whether losses actually occur or how large such losses are.

According to Soviet law, the obligation to pay a penalty is supplementary (accessory) to the primary obligation. Any agreement concerning a penalty must be concluded in written form to be effective. The size and form of the penalty are determined by the nature of the violation of the original obligation. Imposed as a fine, the penalty is a fixed sum or definite percentage of the total unfulfilled or improperly fulfilled obligation. Fines are applied for violation of contract conditions regarding such elements as product quality, completeness of deliveries, efficient use of transport, and observance of the rules of documents transfer in the course of clearing accounts. A penalty is also paid for delay in performance of an obligation, whether for delay in turning over work or for delay in payment. The amount of such a penalty equals a fixed sum or a percentage of the value of the delayed performance, increasing with the duration of the delay.

Depending on the combination of losses and penalties recovered, the following types of penalties are distinguished: an offset penalty, discharged with the recovery of losses; an exclusive penalty, the collection of which excludes recovery of losses; a contract penalty, collected together with losses; and an alternative penalty, by which the aggrieved party has the right to demand recovery of either the penalty or actual losses.

The penalty is used to strengthen plan and contract discipline. The collection of penalties by socialist organizations is therefore viewed by the law not only as a right but also as a duty to the state. Payment of a penalty does not release the responsible party from performance of the obligation itself, with the exception of cases where the plan on which an obligation between socialist organizations was based is no longer in force.

E. G. POLONSKII


Penalty

 

(Russian penia, from the Latin poena, “punishment”), under Soviet civil law, a sum of money paid for each day of delay in the performance of an obligation or the imperfect performance of an obligation by a guilty party. It is calculated as a percentage of the sum of the unfulfilled or improperly performed obligation. Payment of the penalty does not release the debtor from the fulfillment of his obligation.

References in periodicals archive ?
After being made aware that Pennsylvania s CHIP Buy-in Plan does not qualify as MEC because it does not meet certain requirement(s), and therefore, families are required to find new health plans for their children, the Wolf Administration moved quickly to persuade the federal government to not only exempt these families from facing any tax penalty for 2014, but also to guarantee that there would be an extended enrolment period to April 15, 2015.
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American Tax Resolution Specialists is a tax resolution company that provides families and businesses with various forms of tax assistance, including payroll tax filing, tax penalty abatement, tax settlement negotiation, and more.
When the minor reaches his or her 18th birthday, the tax penalty and income taxes on the annuity's accrued interest will be a strong disincentive for him or her to cash in the entire annuity.
FTB 719PC, Underpayment of Estimate Tax Penalty, was sent to taxpayers regarding the adjustment beginning July 26, 2010.
The Lakers had to pay Grant's salary but could avoid the dollar-for-dollar luxury tax penalty on it.
The penalty would overlap with many existing penalty provisions including the general underpayment of tax penalty in section 6662 and the recently enacted section 6662A penalty for underpayments of tax for reportable transactions.
Like other retirement accounts, withdrawals and other distributions taken prior to age 59 1/2 are subject to a 10% federal tax penalty.
This is despite the fact that, until now, Renault's diesel unit has incurred a three per cent tax penalty for UK business users, because it has not been clean enough to meet the most stringent exhaust emissions standards.
Occasionally we list multiple extra items--such as financial planning, a yearend tax planning meeting, additional services in connection with the sale of rental property, researching cost basis of mutual funds sold, calculation of S corporation basis, preparation of the next year's estimated taxes, prior years' income annualization for estimated tax penalty reduction, alternative minimum tax credit calculation or any of a few dozen other items.
ASAE argued that the 1993 law establishing a tax penalty on association activities amounts to a government restriction on association free speech.
The "reasonable cause"/"willful neglect" standard has been part of the tax penalty provisions since 1916, and Congress has not amended these provisions to create a different standard for the failure to pay trust fund taxes.