People with guns forcibly going through your things with threat of prison time tends to erase desire for revenue. See international business climate in China.
Them not paying taxes where I live means they can stay out till they do. Why should I have to compete with multinationals that don't play by the rules?
I expect my polkticians not to let themselves be dazzled by the complexity of their tax schemes and tax them the same amount they would if I sold that service here.
Around ~2012 we were chilling on the terrace of a fancy office in the brisk morning (after a quick server migration in the datacenter on the ground floor, which of course turned into an all-nighter) as people were coming in to work, and then suddenly the folks coming in all looked the same, greenish uniform, some had SMGs, oh well.
We worked for a small company, so we knew that they're here for the big company that does credit card transactions, but it was both surprising and ... absolutely uneventful, they didn't even talk to us. (As we were leaving we didn't even run into them - at least I don't recall any interaction.)
Later the sysadmins of the big company had amazing stories about how the tax authorities wanted copies of every hard drive. And when they told them that, sure, sure, but things are on a RAID and without the config and the card it'll be useless. They didn't care of course :)
If it’s predictable, they can plan for it. Don’t do tax fraud => no raids. I would say that some businesses just make a risk evaluation mistake and end up being raided.
China is a little more arbitrary and political, that makes it less predictable and bad for business.
