Re: Let's see..
"What if the family were treated as guests of the company or were perpetually loaned the use of facilities etc or even paid a loan they never had to pay back?"
There was a similar tax loophole that has recently been closed:
http://www.accaglobal.com/za/en/technical-activities/technical-resources-search/2014/october/offshore-loan-schemes.html
Basically a 'business' could set up an offshore 'employee loan scheme' - which gave 'loans' that were never intended to be paid back.