[m_mueller]

Furthermore, in German we have a saying: "Where there is no judge, there's no executioner". Maybe this attitude is more popular in Switzerland than in Germany, but the basic meaning is: don't sweat the legality of small exchanges that (a) don't affect anyone negatively and (b) aren't in some government agency's crosshair. That being said, your mileage in different legal systems may vary - in our civil law system it's probably more common for a judge to simply throw out such trifling matters and people are generally also way less inclined to start a lawsuit.

[chmike]

USA is kind of special regarding legality handling. An unhappy candidate my find legal arguments to complain. In Europe, states may be unhappy that work has been done without tax payment.

This payment looks like easy money for cheaters who would copy ready made solutions or ask friends for help. I'm not convinced, but this is indeed how things should be done in an ideal world.

I guess we could also ask candidates to pay. That is what is done in engineer schools in France. Not sure this is a good filtering method because of the Donner Kruger effect.

[m_mueller]

> In Europe, states may be unhappy that work has been done without tax payment.

Well, it's a good thing we have (now domestic only) banking secrecy in Switzerland, for exactly these reasons. You only get into trouble when your livelihood doesn't make sense from what you earn and own - as long as you pay what's generally considered a 'fair' amount of tax, no-one will blink an eye and come after your documentation. And even if for some reason the government finds out, all that will happen is a penalty tax ranging from 20 to 300% of the missed revenue, usually 100%. There is an explicit difference between tax fraud (document forgery, which could mean jail) and tax evasion (when you 'forgot' to declare something, which leads to above penalty.

Overall, the system is set up so that the government can't abuse its asymmetric power over individuals, instead keeping it as close as possible to an 'employee' of the people.