The problem is that it works too well. As you can clearly see, the solution basically everyone individually applies is to stay clear of anything that might be an issue by several miles.

If you apply the same reasoning to things like private data handling, little things like just shipping stuff will be prohibitively expensive, as no one will want to handle private data like addresses and instead go to a provider, which will need excessive amounts of cash and red tape to do anything for taking on that liability. Building stuff will become impossible, as all of the current red tape will be exponentially expanded with liability checks against any possible pollution. Founding a company will basically never happen, because no one wants to risk 20+ years in jail - and if they do, they'll simply turn to crime, because if your risk profile is that off anyway, not paying taxes will just be a minuscule risk increase.

I'm not saying that there's no political incentive to ignore those issues and keep fines low, but piercing the corporate veil is the nuclear option and there is a reason it's used so little.