Check if any points of an objects bounding box is inside the bounding box of another object

Question

I'm trying to make a script that'll find if any points of an objects bounding box is inside the area of a different objects bounding box.

My thought was to cancel out the rotation of the object I'm checking against so that I can just do a simple point.x > minX and point.x < maxX check to see if its inside. I would essentially move everything into the relative space of the object I'm checking against.

I've almost got a solution working, I'm using a matrix invert on the active object (the one I'm using as the area to check against) so everything is axis absolute and then I translate each other selected object into that relative space.

The problem is that I don't understand how to keep the relative rotation of the other objects intact as currently it removes all rotation for all objects:

Here's the code I'm using to get the positions of the corners (also spawning empties to make it easier to see)

import bpy
context = bpy.context
act_obj = context.active_object
sel_obj = context.selected_objects
#this section is to make sure the scale of the active object is applied
originalSel = sel_obj
for obj in sel_obj:
    obj.select_set(False)
act_obj.select_set(True)
bpy.ops.object.transform_apply(
    location=False, rotation=False, scale=True, properties=False)
#debug create an empty to see where the points are
def createEmpty():
    obj = bpy.data.objects.new( "empty", None )
bpy.context.scene.collection.objects.link( obj )

obj.empty_display_size = 1
obj.empty_display_type = 'PLAIN_AXES'

return obj


#get the relative locations of the corners of the bounding box
def calculateBounds(matrix_world_inverted, obj):
    local_pos = matrix_world_inverted @ obj.matrix_world.translation.copy()
allVertPositions = []


for vert in obj.bound_box:
    empty = createEmpty()
    vertPos = []
    for i in range(3):
        vertPos.append(local_pos[i] + (vert[i] * obj.scale[i]))
        empty.location[i] = local_pos[i] + (vert[i] * obj.scale[i])
    allVertPositions.append(vertPos)

return allVertPositions



#get the active objects inverted matrix (so we can work with absolute axis)
matrix_world_inverted = act_obj.matrix_world.copy().inverted()
#create empties for each corner of all selected objects
for obj in sel_obj:
    objVerts = calculateBounds(matrix_world_inverted, obj)

How would I go about making sure that the relative (to the bix box) location of the small box stays intact? Is there an easier way than what I'm doing?