This is why I hate the bureaucracy in my country (Brazil). There's a clear penalty for trying to do things the right way (tons of useless and expensive paperwork), and nothing happens to the crooks who take advantage of the system.
Granted, one of the reasons why there's so much bureaucracy in this country is precisely the crooks. Society tries to protect itself, goes overboard, ends up with lots of complicated rules that enables the very thing they were trying to stop in the first place.
