Comparative Analysis Between Cost and Risk Based on the Sensitivity Method

This paper is about the comparison of cost and risk in the tax system. The results show that the risk decreases the tax revenue and the same result is with the costs. The applied methodology is based on the S.M. (Sensitivity Method) where the comparison between the cost and the risk happens through graphical analysis. The mathematical background and the theory of the money cycle specify the behavior of these variables. The objective of this work is to reveal the interaction between these variables. The scope of the paper is to confirm the behavior of the theory of the Cycle of Money considering these variables.