Fines with a punitive nature are not deductible, as deductions would be tantamount to softening the fine and thwarting its effect. On the other hand, when there is doubt about the nature of the payment imposed as a result of an illegal act, it is necessary to examine whether it is a payment that is in essence punitive or remedial, and whether granting permission to deduct it would thwart the public policy underlying its imposition.

It should be emphasized for the sake of clarity that a financial penalty, unlike the traditional criminal fine, is not imposed by a judicial decision but by a decision of the executive authority, as an administrative act. In addition, the citizen does not have the option to request a trial for his actions, as in the case of an administrative offense.