That’s a good analogy of PP and the IRS, many tyrants in both organizations.
History shows that anywhere there is an "above the law" zone you will find tyrants. Such places — whether actual real estate or in the form of a legal construct — act as a magnet for those who have tyrannical instincts and motivations.
They only thing that will keep them at bay is the threat of extreme physical pain or death, and even that isn't enough for some. Over time, such places are overrun with the worst of the worst, and require extreme measures to clean out.
They also corrupt institutions that are nearby or that can impinge upon their prerogatives.
It's a consequence of "power corrupts, and absolute power corrupts absolutely."