It really depends on the circumstances. The police aren't necessarily the "right" answer in all situations involving crimes. I think it depends on seriousness, and the likelihood that police involvement will just make things worse.
In the case in the op, i would like to think i would help the police if it came down to it, but it would also depend on how far i would have to stick my neck, and/or the necks of my family out in the process. If i saw it happening i would probably call the cops.
Snitching should be carried out with discretion.
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