It will works only if change the content on the newer domain with other theme. Just copy/paste the content will be huge footprint and if not now possibly late google will get the penalty again.

What kind of penalty? If the pagerank is there the chances to get positive reviews are huge. If the domain is deindexed, than forget your site. For deindexed domain all you can do is change the theme and the content on this domain and host it on other IP.

So you can do 301 redirect from any competitors' domain to new one? You can't LOL!
Anyway - of course negative SEO trough 301 is possible and special after the last google update for this from about a month. This can be easy done trough few high PR domains (or possibly few deindexed), but with 301 to the domain and not trough 301 from domain.

More about the penalty escape - don't just get new domain. My point is, that if you get relevant, aged domain with pagerank and authority, than the transfer (the redirect) will looks much more natural. I mean 301 redirect means transferring to new domain to protect the SERP and link juice (can be found in google webmasters help). If the domain you use for redirect is aged, this will looks like 2 aged companies are combined in one.

Again this is just my point and I haven't tested it - I've never have domain with high profits. All my tests with 301 is buying old domain and redirect to social pages, fiverr gigs and other domains for quick boost and it work very good.

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