Paradise Papers

[Beskar]

I may have underexplained it in my last post, but one potential problem is that when you tax all their income, it can disproportionally hurt smaller companies that now barely make a profit and then make a big loss and go out of business. Which just helps the big ones in a way. Yes, they might pay more taxes now, but they also get rid of their competition. And then you get more monopolies and customers getting shafted.
Then, as soon as you begin to make exceptions, the lawyers of the big ones will likely find ways to be worth their money again...

Isn't that why so many laws are so complicated in the first place?

Well, you can resolve those issues by not actually using tax as the mechanism. You have systems which use grants and so on to support businesses. This could be like in Germany where the town council pays cafe's and restaurants to allow the public to use their toilet facilities. You tie in incentives, such as community work or public good, so the businesses provide for the community and get income based on that. This in turn lowers public spending as the government does not need to fund these services themselves. This ends up tailored to the local areas and encouraging/supporting small business. There are ways to do it.

On the other hand, if your business is just plain terrible it should be allowed to fail. America for example has some big name companies which cannot turn a profit and gets billions in funds from the government (like General Motors) whilst rival American companies are achieving this (like Tesla).