Hollywood Accounting

[CARLHAYDEN]

Hollywood Accounting: Darth Vader Not Getting Paid, Because Return Of The Jedi Still Isn't Profitable

Last year, we wrote about Hollywood accounting and how the big studios set up "corporations" for each movie, specifically designed to "lose money," often by paying money back to the studio itself.

http://www.techdirt.com/articles/20110912/13500315912/hollywood-accounting-darth-vader-not-getting-paid-because-return-jedi-still-isnt-profitable.shtml

[phk]

Interesting. I wonder what auditors think of the whole idea of setting up a corporation for each movie with the intent of losing money.

[CARLHAYDEN]

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.

[opebo]

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.

Oh come on, you just don't like them because they're liberals.  You celebrate the corporation othewise.

[True Federalist (진정한 연방 주의자)]

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.

[Politico]

It's common knowledge that the accountants in Hollywood are extremely creative. Eddie Murphy made a famous remark about the practice of taking a percentage of "net profits" over "gross profits." He called the former "monkey points" because they usually amount to nothing (as is the case in Return of the Jedi/Darth Vader). I believe the screenwriter of Forrest Gump also got screwed over the same way. Can you imagine being the writer of Forrest Gump and not making a penny from your work?

It's never a good idea to work on a movie without taking a lump sum upfront. If you want royalties, you better ensure you have a good lawyer and accountant before you sign anything.

[memphis]

It's not just the arena of federal taxes where big business routinely uses creative techniques to avoid paying taxes. At the local and state level, they routinely threaten to leave/move jobs unless they get special deals and tax breaks. Of course, everybody else has to pay the difference. We need serious tax reform that stops these abuses. How bout it Barack?

[CARLHAYDEN]

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.

[patrick1]

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.

[CARLHAYDEN]

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.

You apparently did not understand my post.

I did not assert there were malfeasers in other industries, but rather than the extent of malfeasance withing the Hollywood entertainment industry is perfasive.

In addition, molst banks, excluding the large ones tend to be pretty reputable.

[True Federalist (진정한 연방 주의자)]

In addition, most banks, excluding the large ones tend to be pretty reputable.

LOL

One reason Georgia has had a disproportionate number of banks go under the past few years is that Georgia's banking laws allowed for very lax regulation of State chartered banks, so a bunch of small banks were chartered with the intent of taking advantage of the housing boom and in hopes of being bought up by larger banks.

The reason small banks didn't have well publicized multi-billion dollar scandals is that they didn't have multi-billions, not that they didn't have scandals.

[CARLHAYDEN]

In addition, most banks, excluding the large ones tend to be pretty reputable.

LOL

One reason Georgia has had a disproportionate number of banks go under the past few years is that Georgia's banking laws allowed for very lax regulation of State chartered banks, so a bunch of small banks were chartered with the intent of taking advantage of the housing boom and in hopes of being bought up by larger banks.

The reason small banks didn't have well publicized multi-billion dollar scandals is that they didn't have multi-billions, not that they didn't have scandals.

Thanks for your post.

Whenever we disagree (which is the usual case), I can be assured I am correct.

[Link]

Its why I suggest that we go back to gross receipts tax for this, one of the most crooked industries.

Wow.  Conservatives don't say a peep as Bush pours Trillions of dollars down a hole in the desert for a totally made up war and now you're showing outrage over this?!  You have a very uneven way of looking at the world.