STUDY: ‘SPONGEBOB’, ‘TRANSFORMERS’ Cost U.S. Taxpayers $4 Billion…VIACOMCBS labyrinthine overseas tax structure…

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Dismissed by critics and devoured by fans, “Transformers: Age of Extinction” was the top box office film in 2014, bringing in $1.1 billion, with more than three-quarters of those dollars coming from overseas.

ViacomCBS’s Paramount Pictures, which distributed the computer-animated action-fest, saved much of that money by licensing the international rights through a complex strategy designed to avoid paying U.S. taxes, according to a study published on Tuesday by the Centre for Research on Multinational Corporations, a nonprofit group funded in part by the Dutch Ministry of Foreign Affairs.

It is common practice for multinational corporations to take advantage of tax shelters. The report offers a rare look at how one company has pulled it off.

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ViacomCBS, a media giant that came into being after the 2019 merger of the sibling companies, has used the same strategy for all its entertainment properties, according to the report.

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Since 2002, ViacomCBS and its predecessor companies, Viacom and CBS, together avoided paying $3.96 billion in U.S. corporate income tax through a system that involved subsidiaries in Barbados, the Bahamas, Luxembourg, the Netherlands and Britain, according to the report.

dnyuz.com/2021/06/01/spongebob-and-transformers-cost-u-s-taxpayers-4-billion-study-says-2/

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