How do google penalties work between sites?

If site A has a penalty (as shown by https://ismywebsitepenalized.com) and it links to site B, does it pass on any of the penalty? Is there any risk to site B?

Site A never showed any penalty messages in GWT but it was an expired domain I purchased a…

If site A has a penalty (as shown by https://ismywebsitepenalized.com ^(http://bollymega.com/goto/https://ismywebsitepenalized.com/)) and it links to site B, does it pass on any of the penalty? Is there any risk to site B?

Site A never showed any penalty messages in GWT but it was an expired domain I purchased and I did not know about the ismysitepenalized previously.

I have site A as a 2nd tier PBN link, so not pointing directly to my money site.

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