as a US based example https://news.yahoo.com/tech-ceo-says-hit-30-193320057.html?guccounter=1&guce_referrer=aHR0cHM6Ly9kdWNrZHVja2dvLmNvbS8&guce_referrer_sig=AQAAANFauX8d-RESbIK_i8R6Pvq4KTlgDwTj-JwZcYgtmn0t0kobqXO6DQr8Bukh_y6b9AcgLPEYGgsQKkGm0qVV2Lh6Als54ukOut8ImkLAECBWoqXpDExlaRKUAYnHn9pbtq8kH7aT6FUjJIjKVWPDJM5lqbn_M_exkIBeD_13_wAS

generally TAX investigations where a settlement is reached are private / only reported where it goes to court and most pay before this.

there is also the issue that the employee is not "likely" to call attention to it if they are benefiting, but that doesn't mean that a company can take the risk.

>An employee remoting into work in another country does not make that company operate or does buisness in that country

unfortunately the laws of many countries define that the residential status does impact an employers liability which may include employment rights, regulatory compliance and Taxation, also the laws of the source company then also have an impact meaning that the situation can be doubly complex. This is less likely to happen if the employer has a strict location policy and can show that the employee has not informed them.

https://seedlegals.com/resources/what-employment-laws-apply-to-my-staff-who-are-working-abroad/

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>Are you telling me people who go on vacations to other countries are legally barred from doing any work remotely in that country

This usually resolves around residential status. Residential status is also separated citizenship or legal right to remain (which in some countries the employer can be held liable for despite not operating or holding a legal entity there - enforcement of which may be interesting in this case but I digress).