Re: Just change the current tax laws.
"It would be legal (if done right) but doesn't make any logical business sense"
If it allows the business to make more profits after tax then of course it makes business sense. That's why companies do it.
The EU is as it is and the countries' tax rates are as they are and that's exactly what happens. If a country taxes its resident businesses highly it can't expect multi-national businesses to accrue most of their profits elsewhere.
Whilst France makes little money from the multi-nationals it makes more from its local companies than the others. It's not the French government that's being disadvantaged by this, it's French businesses and they're actually being disadvantaged by their own government, nobody else.