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Their initial suspicion was piqued by official-looking but suspicious communication about helicopters, encampments, and fake vehicles in public spaces—an indication of major film shoots. Delving into public financial filings, they uncovered the actual companies involved and traced the flow of money, revealing a complex web of accounting practices designed to maximize tax incentives and hide true expenses.
Peeling Back the Layers of Hollywood's Financial Onion
Over years, the pair has examined thousands of company accounts, uncovering systemic practices meant to stretch out costs and receipts over multiple years. One key strategy involves deferring expenses and revenue, creating the illusion of profitability even when studios are suffering losses.