Corporations use tax shelters to disguise profits. And profits on movies and TV are no different. When movies and shows go abroad, they make money. In fact, studios are looking to make more and more money abroad. That's not just because they are eager to get more of an audience for their projects, but because they're finding new and creative ways to hide those profits from the United States government. I'm not an expert, and there is a lot to read about this, but it basically comes down to a big company trying to keep as much of its taxable income as possible. When a company makes a profit on those projects abroad, a portion of those profits is owed to the government as taxes. This happens all over the world, not just with U.S. companies. According to a study published by the Centre for Research on Multinational Corporations, a nonprofit group funded in part by the Dutch Ministry of Foreign Affairs, companies (including movie studios) are using tax shelters to keep profits from the government. The revolutionary part is that they used an entertainment company as their main example. Read More...
Published By: NoFilmSchool - Friday, 4 June, 2021