Frauds against the Revenue

Economists who have studied the economics of crime and other illegitimate activities have pointed out that criminals behave according to economic axioms and tend to evaluate the marginal costs and marginal benefits of such activities. Criminals, as economic agents, consider the probability of capture, conviction and penalisation as costs of the process of criminal activity. These rational individuals often recognise that these probabilities are quite low, at least in many countries, and crime occurs as a result.