The math is right, you just think the calculation should be based on profit not revenue.
That seems silly - it'd be a huge incentive to misstate profits. A "growth" company would claim zero profit - and probably a net loss. (Negative fine?)
Imagine if someone robbed a bank but argued they should only be forced to pay back a little because they spent most of it on the getaway car which was destroyed in the escape attempt, negating most of the profit.
The correct way to do it is to remove all the gross-profits that the company improperly collected - negate all benefits they got and then add a hefty fine on top.
And as for which piece of the business did the crime - image if I could blame just my hands for picking the lock, thus claiming my body should only be fined lightly... Obviously the fine should go all the way up the chain, multiplied at every level, because there's an expectation of due-diligence and if that's being intentionally ignored it's an affront to the state and the protections granted to legal corporations.
The fine should probably be quintupled at every level because the indiscretion was by a subsidiary and wasn't caught directly or in oversight.
That seems silly - it'd be a huge incentive to misstate profits. A "growth" company would claim zero profit - and probably a net loss. (Negative fine?)
Imagine if someone robbed a bank but argued they should only be forced to pay back a little because they spent most of it on the getaway car which was destroyed in the escape attempt, negating most of the profit.
The correct way to do it is to remove all the gross-profits that the company improperly collected - negate all benefits they got and then add a hefty fine on top.
And as for which piece of the business did the crime - image if I could blame just my hands for picking the lock, thus claiming my body should only be fined lightly... Obviously the fine should go all the way up the chain, multiplied at every level, because there's an expectation of due-diligence and if that's being intentionally ignored it's an affront to the state and the protections granted to legal corporations.
The fine should probably be quintupled at every level because the indiscretion was by a subsidiary and wasn't caught directly or in oversight.