This is a really interesting thought (which I will be using in future) but I think it arises from the fact that the tax incidence has to terminate on someone at the very end. Like say income tax (and a wealth tax), depending on how you cut the pie, there are multiple different options for the set of cash flows and corresponding total tax amounts. Moving the assets / cash flows to a business / trust / a separate business / an offshore business / another person all throw a wrench into the works. When we try reconcile infinitely complex real world processes onto paper, there will be problems.
This is a really interesting thought (which I will be using in future) but I think it arises from the fact that the tax incidence has to terminate on someone at the very end. Like say income tax (and a wealth tax), depending on how you cut the pie, there are multiple different options for the set of cash flows and corresponding total tax amounts. Moving the assets / cash flows to a business / trust / a separate business / an offshore business / another person all throw a wrench into the works. When we try reconcile infinitely complex real world processes onto paper, there will be problems.