You hit the nail on the head, at least for the US.
Paying taxes does not make an activity legal, the IRS just wants it money. You can be a gun runner or drug dealer and they dont care.
Just pay them.
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That's true. It was a prostitute in Sweden a couple of years ago who paid taxes. It was totally fine for her to run her "business" as long as she paid taxes, even though it was illegal.
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The different parts of the government are only interested in their parts. They talk about cross department collaboration but it isnt that way especially with bureaucrats. They simply do not want to be bothered.
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