Tax arbitrage strategies can be shutdown by governments. Transparency would be a good start. Require every listed corporation to diagram all of their corporate/llc vehicles worldwide and their interdependencies. Require balance sheets and cash flow statements for each of these entities.
A little historical digression. Kings often had trouble keeping merchants and rich nobles in their places. Often the kings lost out, either completely as losing their heads or losing the power and become figure heads. And these kings often seemed to have absolute power and yet they couldn't keep the powerful in the society in check.
And nowadays these corporations lobby the govt and influence the high officials from early on with promise of cushy jobs for them or their kids.
Govts shutting down tax arbitrage? Yes, sounds so easy but it's near impossible because the powerful forces in society are resisting it.
However, cooperation would require negotiations of laws on a global scale. The existing systems in our old nation states are just not suitable for that.