People realise. People either 1) don't care, or 2) like more competition in a market, generally leading to lower prices. Not having to make profits means Amazon entering a market often lead to lower prices in the shorter term.

Also, wealthy people (or those moderately well off) can avoid tax with a decent understand of tax law. So they might not care. Plenty of people only care about optimising their own returns on capital and effort invested. If I can sell a business for £10m and somehow pay no tax legally, vs selling and paying 20% capital gains tax -- I would always prefer to pay absolutely nothing. Shocker.

Last, I have a good understanding of local and international tax law, and while the system is somewhat broken, it's not massively broken -- steps are being taken internationally to fix major issues.