Civil penalty definition
/What is a Civil Penalty?
A civil penalty is a financial penalty imposed by a government entity. The penalty is imposed because the recipient of the penalty has breached one or more government laws or regulations. The penalty is intended to compensate the government, as well as to ensure that there is a strong incentive for the recipient of the penalty not to engage in the same behavior again.
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The Burden of Proof for Civil Penalties
For a government entity to enforce a civil penalty, the burden of proof is less onerous than for a criminal penalty; thus, the accused party can be found guilty if it is more than 50% likely that the party is responsible. The usual requirement is that clear and convincing evidence must be present in order to impose a civil penalty.
Examples of Civil Penalties
For example, civil penalties can be imposed when a party is proven to have made an error in a filed tax return, or in complying with environmental laws.
The Difference Between Civil Penalties and Criminal Penalties
A civil penalty results in the imposition of a financial penalty, while a criminal penalty can result in an individual being required to serve time in jail.