This has been sop for Hollywood for decades.
Its why I suggest that we go back to gross receipts tax for this, one of the most crooked industries.
Shady accounting such as this is hardly unique to Hollywood. That's why all corporate income taxes should be switched to gross income, not just selected industries you dislike for political reasons.
Ernest,
As usual, you are wrong.
The truth is that Hollywood is far far far more dishonest than most sectors of the American business world.
If only that were the case. There have been major accounting scandals in pretty much every sector of American and global business. Further, you only read about the big ones that get caught and not the day to day fudging of figures. Below are just a few of recent scandals.
Energy: Enron
Telecom: Adelphia, Worldcom
Retail: Kmart
Biopharm: Imclone, Merck, BMS
Healthcare: Helathsouth
Finance/Insurance: AIG +virtually all of the banks.
