Carrying Passengers and VIPs and getting pirated RP

[Jordi]

Once I was in an Lawful character pursuing a smuggler. He docked, unload his cargo of artifacts (or cardi, don't remember) and got a load of passengers.
I could catch him and asked him for a fine. He refused to pay.
I could have destroyed him easily but i didn't do it because he was full of passengers and it would have looked very bad in my lawful character log to say he killed a smuggler because he refused to pay a fine, and at the same time I killed his 4000 passengers.....

I wonder if other players would do the same.....for example, if I would be on a trader full of prisoners and a pirate/corsairs or whatever would require tax. If I refuse they should not kill me because they could also kill their colleagues right ?