[tedunangst]

I don't think the fine would apply instantaneously. Also, the money you give back (the not punitive part) is clearly not income, so why would you pay taxes on it?

More like you have to return 6 million you didn't earn. Your profits are now 3 million. You owe taxes on 3 million, and the remaining 2.5 million fine comes out of what's left.

[thaumasiotes]

If I owe taxes on $3 million, and I also owe a $2.5 million dollar fine, then I owe a lot more than $3 million total. The fine can't "come out of what's left"; it's bigger than the amount that's left.