Tomas Krabec | Romana Čižinská
JEL classification: G30;
Keywords: fine, administrative punishment, property relations of the entrepreneur, going concern;
Abstract: An administrative fine is a monetary penalty that may be imposed by a supervisory authoritity as an administrative punishment. Such a fine adversely interferes in the cash flow generation of the company in question. The fine can be described as an investment carrying opportunity costs with no economic returns. However, according to the judgment of the Constitutional Court of the Czech Rep. Pl. ÚS 3/02 of 13 August 2002 it is submitted that the fine cannot be imposed in such an amount that would ultimately be liquidating for the sanctioned entrepreneur. The assessment of whether the specific amount of the fine imposed represents such an intensive interference with the entrepreneur\'s property that his business activity becomes pointless (i.e., in the long run only for the payment of a fine) is elaborated in this article.