The importance of financial and accounting information in determining and combating economic crime

Economic crime includes fraud, tax evasion, money laundering, corruption, and other illegal activities. It usually arises from the desire to avoid the high costs associated with regulatory compliance. Taxes perceived as too high or unfair can lead entrepreneurs to seek illegal ways to reduce their tax obligations. The effect of these activities is a loss of revenue for the government, which highlights the importance of an efficient tax system.