Might it make more sense to tax businesses on their top line sales/revenue rather than their bottom line profit? Seems to me it would be simpler, making it more difficult to successfully evade. And when I say it would be simpler, that is a massive understatement. The complexity, and therefore opportunities for obfuscation, in calculating profit is truly astounding. In the current landscape, revenue recognition (which is only one component of profit) has grown fairly complex all by itself. But if businesses had to pay a tax directly linked to every dollar of revenue, the incentives to inflate the books would likely be mitigated by the incremental cost and the incentive to deflate the books to avoid the tax would be mitigated by not wanting to report poor performance. Oh, and by the way, a well run, profitable and honest corporation would welcome this because it would save them a lot of money in tax attorneys, accountants and time. Discuss PS: Just to state the obvious for those who require it, the rate structure would be a lot lower than the current rates on corporate profit.