It is kind of the accumulation of a lot of different principles that seem reasonable in isolation. People can incorporate companies for the purpose of carrying

It is kind of the accumulation of a lot of different principles that seem reasonable in isolation. People can incorporate companies for the purpose of carrying on their business. Businesses can trade with each other. Businesses can trade with businesses in other countries. Businesses are taxed on their profits. Profits should not be taxed twice. Sovereign entities can set their own taxes and tax rules. And various other principles like these. It's when they all interact, particularly when the principles are implemented slightly differently in every country, that there is a lot of room for shenanigans.