The taxman cannot in reality come and check your home to see whether you actually work there or not. Can you rent a brass plate address somewhere which has a nominal working place, on a cheap rent? A room in a warehouse in an industrial area could be shared by several (let's say thousands) or people who actually work at home but claim a company residence there. Yes, criminal, but not immoral...
I think you under estimate European bureaucracy. While they don't visit every home they do visit some. As you say tax evasion is criminal; it's a really bad idea to lie to tax authorities.
Here's the UK government talking about visiting your home to check your business accounts if you run a business from that home and they want to check your compliance.
Of course you must not lie to tax authorities, but matters are often up to an interpretation and it is not unreasonable that there's a business address even if in reality a person does not want to incur every day the expense, emissions and enmity of traffic in order to travel to that place of business.
In Helsinki, we did have this silly "let's chase the home offices" bureaucracy in 1970's and 1980's but that hunt went to grave at the same time with the Soviet Union, deservedly.
