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It's hard to legislate that distinction without getting messy, though. Hollywood, for example, is famous for the tax hoops they jump through to make it look lik
by news_to_me 8y ago
It's hard to legislate that distinction without getting messy, though. Hollywood, for example, is famous for the tax hoops they jump through to make it look like blockbusters lose money so they can avoid taxes.
- thatswrong0 8y agoFrom a top Quora answer: > Hollywood accounting isn't about avoiding taxes, studios still pay taxes on revenue whether a film makes a dollar or a billion dollars. > What hollywood accounting does is shift costs around to avoid paying royalties and avoid contractual obligations of profit sharing. I really don't think dealing with profit vs. revenue would be messy at all.
- news_to_me 8y agoI could be wrong about the specifics of Hollywood accounting, but I don't think it's hard to imagine similar techniques being used to circumvent tax laws based on profit. Also, would you please link to the Quora page you referenced?