This is the real kicker... how do you positively incentivize reporting the scheme instead of participating in it? Generally speaking the upside of participating

This is the real kicker... how do you positively incentivize reporting the scheme instead of participating in it? Generally speaking the upside of participating is quite a bit larger than the upside of reporting. The downside of participating can be made pretty harsh by the government, but there can be negative downsides to reporting as well (e.g. physical harm)