Isn't the real question "Why should transactions inside of funds get to avoid taxes?" or "Why is it that if you and 8 friends each own 11% of an offshore fund y

Isn't the real question "Why should transactions inside of funds get to avoid taxes?" or "Why is it that if you and 8 friends each own 11% of an offshore fund you owe capital gains on transactions inside the fund, but if you and 10 friends each own 9% of an offshore fund you do not?"