"I raided Germany's tomb
and got $7.5 million, dawwwling."
Hmmmm, interesting. Here's basically how the German tax code loophole works:
Quote:
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Germany allows investors in German-owned film ventures to take an immediate tax deduction on their film investments, even if the film they're investing in has not yet gone into production. If a German wants to defer a tax bill to a more convenient time, a good way to do it is by investing in a future movie. The beauty of the German laws as far as Hollywood is concerned is that, unlike the tax laws in other countries, they don't require that films be shot locally or employ local personnel. German law simply requires that the film be produced by a German company that owns its copyright and shares in its future profits. This requisite presents no obstacle for studio lawyers.
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How To Finance a Hollywood Blockbuster | Slate Magazine, April 25, 2005
This is an article about how Paramount exploited the loophole to finance
Tomb Raider.
It also shows you how to work Britain's Section 48 tax relief.
Guess what, my precious? That same German tax code loophole also helped finance
The Lord Of The Rings.
