Final answer:
The imposition of both penalty and tax is not considered double taxation because they serve different purposes and operate under different principles.
Step-by-step explanation:
The imposition of both penalty and tax is not considered double taxation because they serve different purposes and operate under different principles. A tax is a compulsory payment imposed by the government on individuals or entities based on their income or the value of goods sold. Taxes are used to generate revenue to fund public services and programs.
On the other hand, a penalty is a punitive measure imposed as a consequence for violating laws or regulations. It is intended to deter individuals from engaging in certain behaviors or actions that are deemed illegal or detrimental to society.
While both a tax and a penalty involve compulsory payments to the government, the distinction lies in their purpose and the circumstances under which they are imposed. Therefore, the imposition of both penalty and tax does not constitute double taxation.