penalty

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penalty

A payment required as a result of breaking the law or sometimes for breaching the terms of a contract. Most contract drafters assiduously avoid the term because private penalties are not enforceable. Instead, contract drafters use the terms liquidated damages, delay payments, or late fees.Even the prepayment penalty is really not a penalty but compensation to a lender for the loss of income suffered when a loan is paid off earlier than the terms allow.

References in periodicals archive ?
We used these data to estimate logistic regression models and evaluate the relation between the actual readmission penalty assessed to a given hospital and the themes that are related to the size of the penalty and the reaction of the hospital to the penalty.
The penalty period now runs from December 2007 through September 2008--10 months, based on the gift of $100,000 made in June 2006.
The penalty avoidance threshold would rise from "substantial authority" to "more likely than not" even for non-reportable transactions that are not disclosed.
To treat customers equally, Con Edison is proposing that the penalty cost be imposed across the board, even if the boiler is down for servicing.
20) The penalty will be increased for a failure to disclose a listed transaction to $30,000 for each occurrence.
Although Japanese taxpayers are not required to maintain documentation, a penalty of 10 percent of the additional tax due may be imposed if an adjustment is made, and the penalty is increased to 15 percent if the additional tax due is more than 500,000 yen or more than the amount of tax paid on the original return -- whichever is greater.
Under prior law, the penalty could be abated when it was determined that the failure to pay the tax was due to reasonable cause and not due to willful neglect.
For other reportable transactions, the penalty can be rescinded only by IRS authority (which cannot be reviewed by a court).
For corporate taxpayers, the penalty is $200,000 for so-called listed transactions (LTs), including transactions "substantially similar" to a listed transaction; and $50,000 for all other RT categories.