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A fine is imposed by a court when you are convicted of a criminal offence. A penalty is issued by an appropriate authority when you have not complied with the law but you have not committed a criminal offence. This means you do not get a criminal record e.g. parking and fare evasion. If you fail to pay the penalty, you will have to go to court and may then have to pay a fine and get a criminal record.

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Q: What is the difference between fine and penalty?
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