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From 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 dolla
by thatswrong0 8y ago
From 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?